India’s small and medium enterprises (SMEs) are making significant strides on the global stage, propelled by the country’s free trade agreements (FTAs) and a strong focus on digital transformation. Khagen Murmu, a Member of the Parliamentary Standing Committee on MSMEs, highlighted the impact of FTAs with the UAE and Australia, along with ongoing engagements with the European Union (EU), at a ‘Global SME Conclave’ organized by ASSOCHAM.
Murmu emphasized that these agreements are reshaping the landscape for Indian MSMEs by providing them with zero or minimal tariff access, thereby boosting the competitiveness of Indian products, especially in sectors like textiles, handicrafts, and engineering in international markets. With MSMEs contributing around 45–48 per cent of India’s total exports, there is a growing trend of these enterprises integrating into global value chains, aiming to transition from serving domestic markets to becoming global suppliers.
Experts at the conclave underscored the pivotal role of digital transformation and an improved regulatory framework in unlocking the next phase of growth for SMEs. The event brought together policymakers, industry leaders, financial institutions, and technology experts to discuss the evolution of lending ecosystems, digitalization, and enhancing export competitiveness.
The experts highlighted government-supported digital platforms like the UDYAM portal and the Government e-Marketplace (GeM) as crucial facilitators in democratizing market access and cutting out intermediaries. However, they also stressed the importance of raising awareness and building capacity to encourage broader participation among small businesses. According to Padma Jaiswal, Secretary, Government of NCT of Delhi, leveraging transformative technologies such as artificial intelligence, digital platforms, and online services could potentially unlock an additional $500 billion market opportunity for Indian SMEs.
Jaiswal further pointed out that digital services already contribute nearly 25 per cent to India’s exports and GDP. By embracing digital platforms, SMEs can directly engage with global buyers, streamline their operations, and enhance their competitiveness. She emphasized that digital integration is no longer a choice but a necessity for SMEs looking to access global markets, improve operational efficiency, and scale their businesses.
