Cross-border payments for MSMEs: Will it empower India's exports?
Facilitating seamless cross-border payments for MSMEs is a pivotal factor in propelling them towards achieving 60% of the formidable $2 trillion export target by 2030.
In the pursuit of Prime Minister Narendra Modi's vision to transform India into a $5 trillion economy, one critical pillar stands tall: reaching $2 trillion in total exports by 2030. This isn't just a significant economic milestone; it is a testament to India's emergence as a significant player in the ever-evolving global trade landscape. But to reach this ambitious goal, we must acknowledge the role of an often overlooked yet pivotal factor – the seamless facilitation of cross-border payments, especially for Micro, Small, and Medium Enterprises (MSMEs).
Traditionally, international trade was a realm dominated by corporate giants, with the resources to navigate complex capital requirements, establish global connections, and comply with regulatory demands. However, the digital revolution has democratised global trade. Today, even small businesses can leverage B2B or B2C eCommerce platforms and online service providers to engage in international trade, thanks to technological advancements and enabling policies from the government and regulatory bodies.
MSMEs can now harness their strategic location to integrate into global supply chains. By manufacturing components or providing services that fit seamlessly into these supply chains, they can access a broader customer base and secure stable, long-term partnerships. In FY 2022-23, MSME products accounted for 43.6% of India's exports.
Traditionally, navigating cross-border low-value payments has felt like a financial maze, plagued by formidable challenges. Traditional methods for cross-border payments rely on
Read more on livemint.com
