Free trade agreements (FTAs) and economic partnerships are creating opportunities for Indian micro, small and medium enterprises (MSMEs) in international markets, but improvements in quality and competitiveness will be essential to benefit from them, MSME Secretary Bharat Khera said on Tuesday.

Speaking on the sidelines of the Confederation of Indian Industry’s 23rd Global MSME Business Summit 2026, Khera said the Ministry of MSME was following a comprehensive approach to strengthen the sector and support the Viksit Bharat 2047 vision. Its priorities include enterprise formalisation, access to finance, quality improvement, technology adoption, export competitiveness, entrepreneurship and skill development.

Khera said sustained efforts to bring informal businesses into the formal economy had resulted in 98 mn enterprises registering on the Udyam platform. He also highlighted the Credit Guarantee Scheme for Micro and Small Enterprises and the Trade Receivables Discounting System (TReDS) as important channels for improving access to finance.

TReDS discounting rose from Rs. 400 bn in 2022-23 to Rs. 3.5 tn in the last financial year, while outstanding credit to the MSME sector increased fourfold from about Rs. 1 tn a decade ago to nearly Rs. 4 tn. Khera said the ministry was also promoting the Zero Defect, Zero Effect scheme to encourage quality standards and improved manufacturing practices.

Although bronze-level certifications have increased, adoption of silver and gold certifications remains limited. The ministry plans to work with the Quality Council of India and the National Productivity Council to promote higher standards, while closer cooperation with technology centres is intended to make technology more accessible to businesses.

Khera said first-time exporters, particularly small businesses in remote areas, needed greater support with logistics and export preparedness. He also urged larger companies to assist MSMEs through innovation, technology transfer, vendor development and supply-chain integration, including businesses in Tier-II and Tier-III cities supporting 13-14 sectors covered by Production Linked Incentive schemes.