A recent media report has said that in a bid to enable the MSMEs (Micro, Small and Medium Enterprises) to import technology and equipment from USA, the Export Import (Exim) Bank of India has signed a Master Guarantee Agreement with the Exim Bank of USA.

The report published in today's issue of the Business Standard quoted T V Rao, director (Eximius centre) of Exim Bank of India, as saying: "Exim Bank of India caters to the requirement of the MSMEs in multiple ways by facilitating them to move up the value chain and to make them internationally competitive. We have signed a Master Guarantee Agreement with the US-Exim Bank which would enable the Indian MSMEs to import technology and equipment from USA."

Besides, Exim Bank has also launched the Grassroots Business Initiative to create export capabilities for entrepreneurs at the grassroots level in the rural areas, thereby enhancing the purchasing power of the people at the bottom of the pyramid, the report said.

"Apart from being an export finance institution, Exim Bank seeks to create export capabilities and international competitiveness with particular focus on the MSMEs. In addition, the bank seeks to help the MSMEs to establish their products overseas and enter new markets by assisting them in locating overseas buyers and partners for their products and services," Rao told the newspaper.

Talking on the initiatives of the government for the MSMEs, Rao told the newspaper: "The Union Budget for 2010-11 has increased the budgetary allocation for the MSMEs from Rs 700 crore to Rs 2400 crore. The Centre is also planning to make it mandatory for the PSUs to procure at least 20 per cent of their total requirement from the MSMEs and this step is estimated to benefit MSMEs to the extent of Rs 3400 crore."