An MSME industry body has called for stronger government support to help small and medium-sized enterprises take advantage of India’s expanding network of free trade agreements (FTAs).
The industry body said MSMEs could gain greater access to overseas markets as India signs and implements more trade agreements. However, many smaller exporters continue to face challenges related to compliance, product standards, certification, finance, logistics and market information.
It urged the government to strengthen support mechanisms that can help MSMEs understand FTA provisions and effectively use tariff concessions available in partner markets. Greater awareness of rules of origin and documentation requirements was also highlighted as important for increasing utilisation of FTAs.
The body also called for improved access to export finance, testing and certification facilities, technology upgrades and international market intelligence. These measures, it said, would help MSMEs become more competitive and meet the requirements of overseas buyers.
India has been expanding its trade engagement with major markets through bilateral and regional agreements, creating new opportunities for sectors such as engineering goods, textiles, pharmaceuticals, food products, leather and other manufactured goods.
The industry body said coordinated government support would be critical to ensure that MSMEs, which account for a significant share of India’s exports, are able to convert the opportunities created by the country’s growing FTA network into higher shipments and sustained international market presence.