PM's FTA push to boost MSMEs' global reach, competitiveness: Exporters

Prime Minister Narendra Modi's call to MSMEs to fully leverage India's growing network of free trade agreements (FTAs) is timely, as these pacts offer small businesses an opportunity to access larger global markets, integrate with global value chains and improve their competitiveness, exporters say.

They also said that with preferential market access now available across several major economies, the real opportunity lies in converting these agreements into export orders.

Prime Minister Narendra Modi, on Saturday, said India has finalised FTAs with about 40 countries since 2014, presenting a tremendous opportunity for the country's MSMEs, and urged small enterprises to tap these opportunities and not let the chance slip away.

 

Addressing the country on the 80th Independence Day, he said there is a need to expand the global reach of Indian products and ensure that goods such as textiles, machinery and medicines find their way into international markets.

Welcoming the government's move on FTAs, former chairman of the Council for Leather Exports (CLE) Aqeel Panaruna said that with progressive trade pacts and foreign trade policy opening new opportunities, India is firmly positioned for sustained growth and prosperity.

"We remain committed to strengthening Indian manufacturing, generating large-scale employment and contributing meaningfully to the vision of Viksit Bharat by 2047," Panaruna said.

He said that the prime minister's emphasis on self-reliance, innovation, youth empowerment, employment generation and global competitiveness has further strengthened the collective resolve of the industry.

Sharing similar views, Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai said the prime minister's call to MSMEs to fully leverage India's growing network of FTAs is both timely and significant.

"FTAs are not merely about tariff concessions; they provide MSMEs a gateway to integrate with global value chains, access larger markets and enhance their competitiveness. With preferential market access now available across several major economies, the real opportunity lies in converting these agreements into export orders," Sahai said.

FIEO will continue to work closely with MSMEs to build awareness on rules of origin, standards and market opportunities so that even smaller enterprises can confidently take Indian products and brands to global markets.

MSMEs account for about 35.4 per cent of the country's manufacturing, around 48.58 per cent of exports, and 31.1 per cent of GDP.

With over 7.47 crore enterprises employing over 32.82 crore persons, the sector holds its position as the second-largest employer after agriculture.

Globally, MSMEs make up about 90 per cent of businesses and are responsible for over 50 per cent of the total global employment.

India has recently implemented such pacts with the UAE, Mauritius, Australia, the UK, the EFTA bloc, and Oman. Trade pacts with the 27-nation European Union (EU) and New Zealand have also been finalised.

In such pacts, two trading partners significantly reduce and eliminate import duties on the maximum number of goods traded between them.