India’s push toward strategic Free Trade Agreements (FTAs), combined with rapid digitisation, is poised to significantly enhance the global competitiveness of Micro, Small, and Medium Enterprises (MSMEs), according to experts at a recent industry gathering.
Speaking at the ‘Global SME Conclave’ organised by ASSOCHAM, Khagen Murmu, a member of the Parliamentary Standing Committee on MSMEs, highlighted the transformative impact of India’s FTAs with the United Arab Emirates, Australia, and the European Union. He described these agreements as “game changers” that are reducing or eliminating tariffs, thereby boosting the competitiveness of Indian products such as textiles, handicrafts, and engineering goods in global markets.
MSMEs currently contribute nearly 45–48 percent to India’s total exports, and Murmu emphasized that the sector is increasingly integrating into global value chains. He reiterated the government’s vision of enabling small enterprises to transition from domestic-focused operations to becoming global suppliers.
Industry experts at the conclave underscored the importance of digital transformation and improved regulatory frameworks in accelerating MSME growth. Discussions focused on next-generation lending systems, export readiness, and the role of technology in scaling operations.
Government-backed digital platforms such as the Udyam portal and the Government e-Marketplace (GeM) were recognized as key enablers in expanding market access and reducing dependency on intermediaries. However, experts stressed the need for greater awareness and capacity building to ensure wider adoption among small businesses.
Padma Jaiswal, Secretary to the Delhi National Capital Region government, highlighted the immense potential of emerging technologies. She noted that tools like artificial intelligence and digital platforms could unlock an additional $500 billion market opportunity for Indian SMEs.
Jaiswal further pointed out that digital services already contribute about 25 percent to India’s exports and GDP. By leveraging digital ecosystems, MSMEs can directly engage with global buyers, streamline processes, and enhance operational efficiency. She concluded that digital integration is no longer optional but essential for sustained growth and global competitiveness.
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