FTAs Open Global Markets for MSMEs; Quality and Competitiveness Key
MSME Secretary Bharat Khera highlights how FTAs create global opportunities and why quality and competitiveness are vital for MSME growth.
Micro, Small, and Medium Enterprises (MSMEs) are standing on the threshold of a global expansion era as Free Trade Agreements (FTAs) and new economic partnerships unlock unprecedented opportunities in international markets. However, to truly capitalize on these openings, Indian MSMEs must prioritize quality and competitiveness to thrive on the world stage, according to Bharat Khera, Secretary, Ministry of MSME.
Speaking at the CII’s 23rd Global MSME Business Summit 2026, Khera emphasized that while the doors to global markets are swinging open, the ability of small businesses to compete hinges on their ability to meet international standards.
The Five Pillars of MSME Growth
As part of the broader vision for Viksit Bharat 2047, the Ministry of MSME is implementing a comprehensive strategy to strengthen the sector. Khera outlined five critical priorities designed to transform the landscape for small businesses:
- Formalisation of enterprises: Bringing informal businesses into the mainstream economy.
- Access to finance: Ensuring capital is available when needed.
- Quality improvement and technology adoption: Upgrading manufacturing standards and digital tools.
- Export competitiveness: Preparing businesses to compete globally.
- Entrepreneurship and skill development: Building a robust workforce and leadership.
A Massive Leap in Financial Inclusion
The move toward formalization has already seen significant success. Khera noted that 9.8 crore enterprises have registered on the Udyam platform, allowing them to access essential institutional support. This formalization has paved the way for much better access to credit.
A striking example of this financial growth is seen in the Trade Receivables Discounting System (TReDS). Khera revealed that TReDS discounting jumped from Rs 40,000 crore in 2022-23 to a staggering Rs 3.5 lakh crore in the last financial year. Furthermore, outstanding credit to the MSME sector has grown fourfold over the last decade, rising from approximately Rs 10 lakh crore to nearly Rs 40 lakh crore.
The Challenge of Quality: Beyond Bronze
While financial and formalization milestones are being met, the push for manufacturing excellence remains a work in progress. Khera highlighted the Zero Defect, Zero Effect (ZED) scheme, which encourages enterprises to adopt high-quality standards and sustainable manufacturing practices.
While the number of bronze-level certifications has seen an increase, Khera pointed out that the adoption of silver and gold certifications remains low. To bridge this gap, the Ministry plans to collaborate with the Quality Council of India and the National Productivity Council to encourage enterprises to aim for the highest quality benchmarks.
Bridging the Technology and Export Gap
For MSMEs in remote areas, the path to exporting is often blocked by logistical hurdles and a lack of technical preparedness. Khera stressed that the government must provide greater support to first-time exporters to help them navigate these challenges. He also urged industry players to work closely with government technology centres to ensure that advanced tech becomes accessible to enterprises of all sizes.
The Secretary also highlighted the vital role of larger corporations in this ecosystem. He noted that established enterprises can act as catalysts for MSME growth through:
- Innovation and technology transfer
- Vendor development
- Integration into global supply chains
Khera remarked that many enterprises have already become "champions" due to the Production Linked Incentive (PLI) schemes across 13-14 sectors. He urged vendors in Tier-II and Tier-III cities to meet stringent quality standards to ensure the entire supply chain remains globally competitive.
With 80 per cent of CII members belonging to the MSME sector, Khera concluded that stronger coordination between the government and industry is essential to boost exports, strengthen manufacturing, and generate widespread employment to meet the 2047 goals.