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FTAs Open Global Supply Chains for Indian MSMEs, Says Minister Jitin Prasada

Union Minister Jitin Prasada stated that recent Free Trade Agreements provide Indian MSMEs significant opportunities to integrate into global supply chains by accessing developed markets. He emphasized the sector must transition from scale and low-cost manufacturing to a focus on quality-driven production to meet international demand. The minister also highlighted the critical role of Artificial Intelligence in improving productivity and encouraged MSMEs to adopt AI-driven technologies. Concurrently, initiatives to promote women-led development through digital empowerment and targeted support were underscored at the FICCI FLO awards ceremony.

Key Points: FTAs Create Global Opportunities for Indian MSMEs

  • FTAs open access to 65% of developed markets
  • Shift from low-cost to quality-driven production urged
  • AI adoption critical for MSME efficiency
  • Women-led development & entrepreneurship promoted
  • ONDC platform targets onboarding 5 lakh MSMEs
3 min read

Free trade agreements create new opportunities for MSMEs to integrate into global supply chains: Jitin Prasada

Union Minister Jitin Prasada highlights how FTAs help MSMEs integrate into global supply chains and shift to quality-driven growth with AI adoption.

"MSMEs... should focus on strengthening India's journey towards quality-led growth. - Jitin Prasada"

New Delhi, March 9

Recent FTAs with regions including the European Union, the United Kingdom, Australia, New Zealand and other major markets provide Indian MSMEs with access to a large share of developed markets, creating significant opportunities for Indian manufacturers to integrate into global supply chains and meet international demand, said, Jitin Prasada, Union Minister of State for Commerce and Industry and Electronics and Information Technology.

Addressing the FICCI FLO National MSME Awards Ceremony, he highlighted the role of Free Trade Agreements (FTAs) in expanding opportunities for India's Micro, Small and Medium Enterprises (MSMEs).

Prasada emphasised that MSMEs, which form the backbone of the Indian economy, should focus on strengthening India's journey towards quality-led growth.

He noted that the sector must shift from scale and low-cost manufacturing to quality-driven production.

Referring to the fact that nearly 65 per cent of developed markets are part of India's FTAs, he stated that these markets demand high-quality products and that Indian consumers, including those in rural areas with digital access, are increasingly aspiring for better quality goods. He further added that zero duty access does not imply that sub-standard products can enter the Indian market.

Highlighting the importance of technology adoption, the Minister stated that Artificial Intelligence (AI) is emerging as a critical tool across industries including healthcare, transportation, manufacturing and services. He encouraged MSMEs to adopt AI-driven technologies to improve productivity, efficiency and decision-making, while reducing the burden of routine operational tasks.

Chairman and Managing Director of the National Small Industries Corporation (NSIC), Dr Subhransu Sekhar Acharya, emphasised the importance of promoting women-led development through targeted support, digital empowerment, and skill development initiatives.

He highlighted the Trade Enablement & Marketing (TEAM) initiative promoted by NSIC, which aims to onboard five lakh MSMEs onto the Open Network for Digital Commerce (ONDC) platform, with a target that 50 per cent of these enterprises should be women-led.

National President, FICCI Ladies Organisation (FLO), Ms Poonam Sharma, highlighted the growing role of women entrepreneurs in driving economic growth. She noted that across sectors--from startups to space, and from manufacturing to technology--women are emerging as significant drivers of innovation and economic activity. She emphasised that MSMEs play a vital role in employment generation, innovation and strengthening local economies, with women-led MSMEs contributing to inclusive development.

The Assist Cell connects women entrepreneurs with industry experts, mentors and specialists across key areas including funding, marketing, expansion strategies, technology adoption and business skill development. The initiative aims to enable women entrepreneurs not only to establish businesses but also to scale and sustain them successfully.

During the ceremony, eleven women MSME entrepreneurs were presented awards in recognition of their contributions.

- ANI

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Reader Comments

R
Rohit P
Good to see the push for AI adoption. But as a small manufacturer, the initial cost of such technology is a huge barrier. The government needs to provide more than just encouragement—subsidies or easy loans for tech upgrades are essential for MSMEs to actually benefit from these FTAs.
S
Sarah B
The emphasis on women-led MSMEs is fantastic! The TEAM initiative targeting 50% women-led enterprises on ONDC is a practical move. More power to the award winners. When women entrepreneurs succeed, it lifts entire communities.
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Aditya G
While the opportunities are great, the reality on the ground is different. Many MSMEs struggle with basic infrastructure and compliance. Before we talk about global supply chains, we need to fix power supply, logistics, and the complex tax system. Hope the government walks the talk.
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Nidhi U
The point about rural consumers aspiring for quality goods is so true. With UPI and cheap data, even my village is buying online. If our MSMEs can produce quality that meets both global and domestic demand, it's a win-win. Jai Hind!
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Michael C
Integrating into global supply chains requires more than just zero duty. International standards for labor, environment, and quality are stringent. Hope there is adequate hand-holding and training for small businesses to navigate these requirements successfully.

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