Small and medium enterprises need stronger government support to benefit from India’s expanding network of free trade agreements (FTAs), industry body Laghu Udyog Bharati said. It highlighted difficulties faced by textile exporters seeking alternative overseas markets amid changing United States trade policies and tariffs.

The body said smaller exporters found it difficult to establish business in new regions when demand or trade conditions changed in established markets. The United States remains the largest market for India’s textile and apparel exports, while reciprocal tariffs and policy uncertainty have affected labour-intensive shipments.

India’s overall textile exports increased 6.94 per cent in dollar terms during April-August 2026. However, apparel exports declined 9.10 per cent, resulting in a 0.24 per cent year-on-year fall in cumulative textile and apparel exports.

Laghu Udyog Bharati said FTAs provided market opportunities but larger companies were better placed to use them immediately. It called for handholding, improved connections, marketing programmes, and initiatives to bring overseas buyers to India so that smaller firms could showcase their products and access new markets.

The organisation also raised concerns about limited technological capabilities among small businesses and the absence of a technology upgradation fund for the sector. It has sought the extension of production-linked incentives to smaller companies, saying current benefits primarily support larger players.

The body further pointed to India’s dependence on imported man-made fibre and said import restrictions could affect the availability of fabric for export production. It has requested support under the Export Promotion Mission and urged the Labour Ministry to make training mandatory for Industrial Training Institute trainees. According to the organisation, closer coordination between apprenticeship and industrial training programmes could help MSMEs secure a larger pool of skilled workers.