Indian exporters have welcomed Prime Minister Narendra Modi’s call for micro, small and medium enterprises (MSMEs) to make greater use of the country’s expanding network of free trade agreements (FTAs) to access international markets.
The appeal comes as India continues to broaden its trade agreement network and secure preferential market access for domestic businesses. The government has identified FTAs as an important tool for diversifying export destinations, reducing trade barriers and improving the competitiveness of Indian products overseas.
Exporters believe MSMEs, which form a significant part of India’s manufacturing and export ecosystem, can benefit from lower tariffs and improved market access under these agreements. However, industry bodies have stressed the need for greater awareness and support to help smaller businesses understand rules of origin, tariff concessions and other FTA provisions.
Recent trade data has highlighted the potential of these agreements. India’s exports to several FTA partner countries recorded strong growth in the first quarter of FY2026-27, with shipments to Singapore and Sri Lanka more than doubling.
The government has also introduced export-promotion initiatives aimed at helping MSMEs overcome financing, market-access and compliance challenges. The Export Promotion Mission includes measures such as export factoring, e-commerce credit and support for emerging markets.
Industry representatives say stronger grassroots awareness, easier access to trade information and targeted capacity-building programmes will be essential for MSMEs to fully utilise the opportunities created by FTAs. The Federation of Indian Export Organisations has already been conducting programmes focused on FTA awareness and training for new exporters and MSMEs.
With India seeking to expand its presence in global markets, exporters believe greater MSME participation in FTAs could help diversify the country’s export base, increase shipments of value-added products and create new opportunities for smaller businesses.