Large companies must do more than purchase from micro, small and medium enterprises (MSMEs) and should help them upgrade technology, develop skills and move up the value chain, Bharat Khera, secretary of the Ministry of Micro, Small and Medium Enterprises, said at a Confederation of Indian Industry (CII) event in New Delhi. Khera said production-linked incentive (PLI) schemes had helped create manufacturing champions and brought tier-II and tier-III MSME suppliers into their supply chains. He urged original equipment manufacturers and other large businesses to strengthen support for smaller firms through innovation, technology transfer, vendor development and supply-chain integration. India had 97.4 mn registered MSMEs on the government’s Udyam portal as of October, up from 78.3 mn in February. More than 99 per cent were micro enterprises with annual turnover below Rs. 100 mn, while MSMEs accounted for around 80 per cent of CII’s membership. Khera identified product quality, cost competitiveness, access to timely capital and technology adoption as key priorities for the sector. The government introduced 14 PLI schemes in 2020 across industries including textiles, bulk drugs, white goods and electric vehicles, with total incentives of Rs. 1.97 tn planned to support domestic manufacturing. Delayed payments and higher input costs continue to constrain smaller businesses, while global disruptions have increased pressure on exporters and firms dependent on imported energy and raw materials. Khera also encouraged businesses to use market access created by India’s free trade agreements (FTAs), noting that MSMEs account for more than 50 per cent of the country’s exports. India has signed trade agreements with Mauritius, the United Arab Emirates, Australia, the European Free Trade Association, the UK, Oman and New Zealand. The India-European Union agreement was concluded in January, while discussions on a bilateral trade deal with the US are continuing. Exporting MSMEs have also had to adjust routes amid disruption in West Asia and risks around the Strait of Hormuz and the Red Sea.