Nagpur: The government is working on two policies to increase MSME exports and bring down imports by encouraging local production, Union MSME and Road Transport Minister Nitin Gadkari said on Saturday.

While addressing the gathering at Small Micro Enterprise (SME) conference at Nagpur, Gadkari mentioned that the MSME sector has 29 per cent contribution in country’s growth and 48 per cent of export is done through MSMEs. Similarly, about 10-11 crore jobs have been created in MSMEs.

“The government is working on two policies. Firstly on the industries which are into export business – how to support and increase their export,” the minister said.

The leather industry has a total turnover of Rs 1,40,000 crore of which Rs 80,000 crore to Rs 90,000 crore is domestic and around Rs 45,000-50,000 crore is from export.

“I have suggested them on working on modernisation, upgradation, product designing and how to reduce the cost of production and improve quality, so that our share increases in the international market. We are working on a policy on how to strenghten export business,” Gadkari said.

He further said that secondly, the government is working on a policy to increase indigenous production of products that are being imported.

“The products that being particularly imported should get manufactured in the country itself. We are in talks with the commerce ministry on these two policies and it is in the final stages,” said Gadkari.

Gadkari emphasized on three important factors – reducing capital cost, power cost and logistic cost – to become competitive in international market and these these factors have also been discussed while making the new policy.

Gadkari also spoke about contribution of MSMEs in the defence sector.

Gadkari raised concern over defence procurement procedure saying that the files are stuck for many years and when the product is finalised and tenders are issued till then the product becomes outdated.

He asked for change in Defence procurement system.

Gadkari also said that MSMEs does not get that much work from defence sector as these should get and asked for study to make a good policy which can facilitate work for MSME in defence sector.