FTAs Open Global Markets for MSMEs, Quality Key: Secretary
ECONOMY & POLICY

FTAs Open Global Markets for MSMEs, Quality Key: Secretary

Free trade agreements (FTAs) and economic partnerships are opening new opportunities for Indian micro, small and medium enterprises (MSMEs) in global markets, but quality and competitiveness will determine their ability to benefit, MSME Secretary Bharat Khera said on Tuesday. He was speaking on the sidelines of the Confederation of Indian Industry’s 23rd Global MSME Business Summit 2026 in New Delhi.

Khera said the Ministry of MSME was following a comprehensive approach to strengthen the sector and support the vision of Viksit Bharat 2047. Its five priorities are formalisation, access to finance, quality improvement and technology adoption, export competitiveness, and entrepreneurship and skill development.

Efforts to bring informal businesses into the formal economy have resulted in 98 mn enterprises registering on the Udyam platform, according to Khera. He said the Credit Guarantee Scheme for Micro and Small Enterprises and the Trade Receivables Discounting System (TReDS) had improved access to institutional 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 MSMEs increased fourfold over the past decade, from about Rs. 1 tn to nearly Rs. 4 tn. Khera also highlighted the Zero Defect, Zero Effect scheme, which promotes quality standards and improved manufacturing practices, but said adoption of silver and gold certifications remained low.

The ministry plans to work with the Quality Council of India and the National Productivity Council to encourage higher-level certifications and make technology more accessible through government technology centres. Khera said first-time exporters, particularly small businesses in remote areas, required greater support with logistics and export preparedness.

He added that larger companies could help MSMEs through innovation, technology transfer, vendor development and supply-chain integration. Vendors in Tier-II and Tier-III cities must also meet quality standards, he said. With 80 per cent of CII members belonging to the MSME sector, stronger government-industry coordination could support employment, exports, manufacturing and resilient supply chains.

Free trade agreements (FTAs) and economic partnerships are opening new opportunities for Indian micro, small and medium enterprises (MSMEs) in global markets, but quality and competitiveness will determine their ability to benefit, MSME Secretary Bharat Khera said on Tuesday. He was speaking on the sidelines of the Confederation of Indian Industry’s 23rd Global MSME Business Summit 2026 in New Delhi. Khera said the Ministry of MSME was following a comprehensive approach to strengthen the sector and support the vision of Viksit Bharat 2047. Its five priorities are formalisation, access to finance, quality improvement and technology adoption, export competitiveness, and entrepreneurship and skill development. Efforts to bring informal businesses into the formal economy have resulted in 98 mn enterprises registering on the Udyam platform, according to Khera. He said the Credit Guarantee Scheme for Micro and Small Enterprises and the Trade Receivables Discounting System (TReDS) had improved access to institutional 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 MSMEs increased fourfold over the past decade, from about Rs. 1 tn to nearly Rs. 4 tn. Khera also highlighted the Zero Defect, Zero Effect scheme, which promotes quality standards and improved manufacturing practices, but said adoption of silver and gold certifications remained low. The ministry plans to work with the Quality Council of India and the National Productivity Council to encourage higher-level certifications and make technology more accessible through government technology centres. Khera said first-time exporters, particularly small businesses in remote areas, required greater support with logistics and export preparedness. He added that larger companies could help MSMEs through innovation, technology transfer, vendor development and supply-chain integration. Vendors in Tier-II and Tier-III cities must also meet quality standards, he said. With 80 per cent of CII members belonging to the MSME sector, stronger government-industry coordination could support employment, exports, manufacturing and resilient supply chains.

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