The approach of the FTP 2023, as outlined in the Foreword by the Commerce and Industry Minister is to “gradually move away from the incentive-based regime and create an enabling ecosystem”. In this context, as with MSMEs, an actively affirmative strategy of gender mainstreaming across all the composite elements of the FTP is vital to encourage women entrepreneurs to expand their markets and trade internationally.
In relation to their male counterparts, women entrepreneurs pursuing foreign markets have difficulty in becoming a part of established distribution networks, face more obstacles with regard to logistics, regulatory and procedural compliance and are at a higher risk in facing corruption and harassment.
We recommend the following action points to mainstream gender in the FTP 2023:
1. Recognise importance of women in the FTP
Just as MSMEs have been explicitly identified for focussed interventions to boost exports the forthcoming FTP Statement that usually follows the release of the FTP should highlight women exporters as a clear category for attention in trade facilitation, ease of doing business, integration in global value chains and facilitating e-commerce exports. By bringing support for women to the forefront of the country’s national trade agenda, the FTP Statement can send a strong positive signal of the government’s overall commitment to gender equality and women’s economic empowerment.
2. Include women as a distinct category in support programs and schemes
In the specific support programs and schemes, provisions for women can take the form of waiving off part or full application fees for mandatory compliances such as IEC registration; shorter timelines for processing of various applications; lower threshold for women in the schemes based on annual turnover categorisation; higher percentage of financial support in the assistance schemes etc.For example, an important highlight of the FTP 2023 is the re-calibration of status recognition norms in the “Status Holder Certificate System” to enable more exporting firms to achieve 4 and 5-star ratings. The status categories are assigned on the basis of export performance and also provide several benefits to ‘Status Holders’ including exemptions from bank guarantee requirement for availing schemes under the FTP and prioritisation during custom clearance processes. It is recommended that the ‘Export Performance Threshold’ for grant of status holder in all categories be relaxed further for women-owned enterprises. Further the category of women-owned enterprises should be included as a separate category for calculation of export performance for grant of status.
Similarly, while the Market Access Initiative (MAI) scheme does recognise women as one of the priority beneficiaries, it would be more useful if a definite percentage of the earmarked funds are available for women applicants.
Given that the majority of women MSMEs are micro firms, there is also a strong case for increasing the value limit for exports through courier service for women per consignment. Also, relaxation in the applicable costs for availing the facilities provided by E-Commerce Export Hubs can be a great help to the women owned businesses.
3. Actively consult with women stakeholders
Regular consultation and engagement with women business associations is vital for informed policy making and impact assessment especially in the context of the core principles ‘trust’ and ‘partnership’ enunciated in FTP 2023. We recommend the setting up of a dedicated outreach and monitoring cell in the Ministry of Commerce to undertake active consultations with women entrepreneurs to consider the different priorities and needs of women, especially those that are traditionally excluded from decision-making processes. This will ensure the participation of women in the policymaking process, enable their voices to be heard with regard to the various policies and programmes and accordingly enable a more equitable distribution of resources and improved service delivery.
4. Compile gender disaggregated data
Collection of gender disaggregated data is another widely recognised issue in gender mainstreaming in trade policy. Such data is a pre-requisite for effectively assessing and addressing the inequalities and impediments faced by women in trade. The FTP 2023 points out that continuous efforts are being made for better collection, compilation and wider dissemination of Trade Data and Statistics to help the policy makers, researchers, exporters and importers to formulate their trade strategy. However, the need to collect gender-disaggregated trade data isn’t addressed. The FTP 2003 should mandate the collection of gender-disaggregated statistics on women’s participation in trade as well as impact assessment of the various government schemes and initiatives.
5. Set up Inter-Ministerial Committee for trade related grievances of women entrepreneurs
The FTP 2023 provides for an Inter-Ministerial Committee to be set up to examine MSME trade related grievances which have policy ramifications. This will expedite decision making with a ‘whole of government approach’. This approach could be replicated to solve problems faced by women exporters, steer coordinated support to women entrepreneurs and mainstream gender in the ‘whole-of-government’ approach.
Nisha Taneja is Professor, Sanjana Joshi, senior consultant and Pawani Dasgupta, research associate, at ICRIER.
