MSMEs Call For Easing FEMA Curbs Over Exports, Imports

The small enterprises say a one-size-fits-all solution would put them at a disadvantage

- Manas Pimpalkhare & Rituraj Baruah

Small businesses are calling for relaxations in proposed regulations for exports and imports under the Foreign Exchange Management Act (FEMA), saying a one-size-fits-all solution would disadvantage them.

MSMEs, or micro, small and medium enterprises, say the draft regulations, which were open for public consultation till 30 April, don't have enough provisions for their exports of digital goods and services, which account for 45% of the country's exports.

There is also a policy gap on export procedures for direct-to-customer e-commerce businesses, which are characterized by high-frequency, low-value transactions, according to the India SME Forum.

Typically, the smallest of these businesses don't even have enough financial resources to legally contest challenges in case they fail to meet the compliance burden.