India’s Micro, Small, and Medium Enterprises are no longer peripheral to global trade. They now sit at the heart of India’s economic transformation. As global supply chains realign and resilience becomes a strategic priority, India MSME global trade stands at a critical inflection point.
With nearly 63 million MSMEs, the sector contributes around 30 percent to India’s GDP and employs over 110 million people. MSMEs also account for more than 45 percent of India’s exports, highlighting both their current scale and unrealised potential.
The Momentum Is Real
Recent data reflects a strong upward trajectory. MSME exports rose from ₹3.95 lakh crore in FY21 to ₹12.39 lakh crore in FY25. The number of exporting MSMEs increased from 52,849 to 1,73,350 in just four years.
Yet, the journey is uneven. MSMEs’ share in total exports fell to 43.6 percent in FY23 before recovering to 45.7 percent in FY24. The government’s ambition of a 60 percent MSME export share by 2025 remains bold and achievable only with deeper systemic support.
1. Partnerships: MSMEs Cannot Go Global Alone
In modern trade, collaboration determines competitiveness. MSMEs need public–private partnerships, cluster-based ecosystems, and cross-border alliances to integrate into global value chains.
Government initiatives such as Districts as Export Hubs and Trade Connect are laying foundations. However, scale, awareness, and execution remain inconsistent.
Where partnerships work, results follow. Textile MSMEs in Surat now supply directly to fashion brands in Italy and Turkey. Agri-tech MSMEs in Telangana export irrigation technologies to African markets. These examples prove that collaboration converts capability into competitiveness.
2. Connectivity: The Infrastructure of Access
Without efficient logistics and digital integration, MSMEs cannot scale globally. India’s logistics cost remains high at 13–14 percent of GDP, compared to 8–9 percent in developed economies.
Programmes such as PM Gati Shakti, logistics parks, and port modernisation aim to remove physical bottlenecks. Digitally, the gap is wider. Only 15–20 percent of MSMEs currently use e-commerce or global platforms.
Expanding this footprint could be transformative. Digital trade platforms, AI-enabled logistics, and cross-border payment solutions can dramatically reduce entry barriers.
However, rural and Tier-2 and Tier-3 MSMEs often lack digital access and literacy. Bridging this divide is essential for inclusive globalisation.
3. Resilience: A Must-Have, Not a Luxury
Post-pandemic disruptions made one reality clear: resilience equals survival. For MSMEs, resilience requires financial flexibility, adaptability, and diversification.
Access to trade finance and risk-hedging tools remains uneven. MSMEs must also adapt quickly to policy shifts, tariffs, and demand shocks. Diversified supply chains reduce dependency on single markets.
ESG compliance is becoming mandatory in global procurement. While schemes like CGTMSE have enabled over ₹9 lakh crore in collateral-free lending, many micro enterprises remain under-insured and under-covered.
4. Strategic Priorities for Global Growth
To accelerate India MSME global trade, a focused five-point agenda is critical.
Expand Export Facilitation
Establish more Export Facilitation Centres in underserved districts to support compliance, certifications, and buyer linkages.
Strengthen Digital Export Ecosystems
Build localised digital platforms offering listings, documentation, payments, and market intelligence.
Build Global MSME Alliances
Leverage embassies, trade delegations, and industry bodies like FICCI and CII to enable cross-border partnerships.
Incentivise Sustainability
Offer ESG-linked incentives, tax rebates, and certification support to access EU and US markets.
Promote Sector-Specific Clusters
Support clusters such as leather in Kanpur, gems in Surat, and auto components in Pune through shared infrastructure, testing labs, and design centres.
Case in Point: Policy into Practice
A recent initiative in Aurangabad, Maharashtra, illustrates what works. Engineering MSMEs, supported by SIDBI and a Japanese trade delegation, secured a $12 million export deal for precision components.
The effort began with a regional trade fair and scaled through targeted facilitation. Replicating this model across 100 districts could significantly strengthen India’s MSME export engine.
Conclusion: The Time Is Now
Geopolitical shifts, China-plus-one strategies, and diversified sourcing have opened unprecedented opportunities for Indian businesses. India’s MSMEs are nimble, innovative, and resilient.
However, scale will come only through partnerships that unlock markets, connectivity that reduces friction, and resilience that absorbs global shocks. With coordinated policy, infrastructure upgrades, and digital inclusion, India MSME global trade will not just grow—it will shape the next chapter of global commerce.