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FTAs & Digital Push Propel Indian SMEs Into Global Arena

India's free trade agreements with countries like the UAE and Australia are significantly enhancing the global competitiveness of its small and medium enterprises by providing zero or minimal tariff access. Digital transformation, powered by platforms like UDYAM and GeM, is crucial for SMEs to connect with international buyers and streamline operations. Experts highlight that technologies such as artificial intelligence could unlock an additional $500 billion market opportunity for the sector. The vision is for every Indian small enterprise to evolve from serving domestic markets to becoming a global supplier.

Key Points: FTAs Boost Indian SMEs Globally, Says Expert

  • FTAs with UAE & Australia boost exports
  • Digital platforms democratize market access
  • MSMEs contribute 45-48% of India's exports
  • AI and tech unlock $500B opportunity
2 min read

India's recent FTAs become game changers for SMEs: Expert

India's FTAs and digital transformation are game changers for SMEs, enhancing export competitiveness and unlocking $500B market potential.

"These agreements are proving to be game changers for Indian MSMEs. - Khagen Murmu"

New Delhi, March 19

India's small and medium enterprises are rapidly transitioning into global contenders, due to India's free trade agreements 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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Reader Comments

R
Rohit P
Digital platforms like GeM are a blessing. We supply engineering components and getting government tenders was a maze of middlemen. Now it's transparent. But awareness in tier-2 cities is still low. Need more workshops!
A
Aman W
The potential is huge, but let's be real. For a small business owner in a village, even understanding what an FTA is can be daunting. The government and chambers need to simplify this information and provide handholding. The intent is good, execution needs work.
S
Sarah B
Working with Indian SMEs from Australia, I've seen a noticeable shift. The agreement has sparked genuine interest. The quality and variety of handicrafts are finding a ready market here. It's a win-win.
V
Vikram M
$500 billion from digital tech? That's an eye-opener. We are a small IT services firm. Using AI tools for customer service has already cut costs by 30%. The push for digital is not just hype; it's survival and growth now.
K
Kavya N
Hope the EU FTA happens soon! That market is massive for niche products. My startup makes eco-friendly packaging. European buyers are interested but the current duties make our prices uncompetitive. FTA will be a game-changer indeed.

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