India's Recent Ftas Become Game Changers For Smes: Expert

(MENAFN- IANS) New Delhi, March 19 (IANS) India’s small and medium enterprises (SMEs) are rapidly transitioning into global contenders, due to India’s free trade agreements (FTAs) and their focus on digital transformation, said Khagen Murmu, Member of the Parliamentary Standing Committee on MSMEs, on Thursday.

At a ‘Global SME Conclave’ organised by ASSOCHAM, Murmu highlighted the transformative impact of FTAs with the UAE and Australia, as well as ongoing engagements with the European Union (EU).

“These agreements are proving to be game changers for Indian MSMEs. By enabling zero or minimal tariff access, they are significantly enhancing the competitiveness of Indian products particularly in sectors like textiles, handicrafts and engineering across international markets,” Murmu said.

With MSMEs contributing nearly 45–48 per cent of India’s total exports, Murmu emphasized that the sector is increasingly integrating into global value chains.“Our vision is clear; every Indian small enterprise must evolve from serving domestic markets to becoming a global supplier,” he added.

Experts stressed that digital transformation and improving regulatory framework will be the defining factor in unlocking the next phase of SME growth.

The conclave brought together policymakers, industry leaders, financial institutions and technology experts to deliberate on next-generation lending ecosystems, digitalization and export competitiveness.

Experts at the event pointed to government-backed digital platforms such as the UDYAM portal and the Government e-Marketplace (GeM) as key enablers in democratising market access and eliminating intermediaries. However, they stressed the need for greater awareness and capacity-building to encourage wider participation among small businesses.

“Transformative technologies such as artificial intelligence, digital platforms and online services have the potential to unlock an additional $500 billion market opportunity for Indian SMEs,” said Padma Jaiswal, Secretary, Government of NCT of Delhi.

She further highlighted digital services contribution of nearly 25 per cent to India’s exports and GDP. By onboarding onto digital platforms, SMEs can directly connect with international buyers, streamline operations and enhance their competitiveness, Jaiswal said.

“Digital integration is no longer optional. It is essential for SMEs to access global markets, improve efficiency and scale operations,” she added.

-IANS

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