New Delhi, March 19: India’s focus on free trade agreements (FTAs) and digitalization is rapidly enhancing the competitiveness of small and medium enterprises (SMEs) on a global scale. This statement was made by Khagen Murmu, a member of the Parliamentary Standing Committee on MSMEs, during the ‘Global SME Conclave’ organized by ASOCHAM.
Murmu highlighted the transformative impact of FTAs with the UAE and Australia, as well as the recently signed FTA with the European Union (EU). He stated, “These agreements are proving to be game-changers for Indian SMEs. By providing zero or minimal tariffs, they significantly boost the competitiveness of Indian products in international markets, especially in sectors like textiles, handicrafts, and engineering.”
SMEs contribute approximately 45-48% to India’s total exports, and Murmu emphasized that this sector is increasingly integrating into global value chains. He remarked, “Our vision is clear. Every Indian small enterprise must evolve from being a domestic market producer to becoming a global supplier.”
Experts underscored that digital transformation and improvements in regulatory frameworks will be crucial in accelerating the next phase of SME development.
The conference brought together policymakers, industry leaders, financial institutions, and technology experts to discuss next-generation lending mechanisms, digitalization, and export competitiveness.
Participants noted that government-supported digital platforms, such as the Enterprise Portal and Government e-Marketplace (GEM), play a vital role in democratizing market access and eliminating intermediaries. However, they stressed the need for greater awareness and capacity building to encourage broader participation from small businesses.
Padma Jaiswal, Secretary of the Delhi National Capital Region Government, stated, “Transformative technologies like artificial intelligence, digital platforms, and online services have the potential to unlock an additional $500 billion market opportunity for Indian SMEs.”
She also highlighted that digital services contribute nearly 25% to India’s exports and GDP. Jaiswal mentioned that by engaging with digital platforms, SMEs can connect directly with international buyers, streamline operations, and enhance their competitiveness.
She further added, “Digital integration is no longer optional. It is essential for SMEs to access global markets, improve efficiency, and expand operations.”
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