Govt Building Export Ecosystem To Help MSMEs Benefit From FTAs: DGFT

Mumbai, Jun 30 (KNN) India's Free Trade Agreements (FTAs) are expected to create significant opportunities for the country's micro, small and medium enterprises (MSMEs), R K Mishra, Additional Director, Directorate General of Foreign Trade (DGFT), Mumbai, said on Monday.
 
He emphasised on the importance of the government putting in place a comprehensive support ecosystem to help smaller businesses expand their presence in global markets. 
 
FTAs Expected to Boost MSME Exports 
 
Mishra said India's exports have remained resilient despite geopolitical tensions, supply chain disruptions and other global headwinds, with both export volumes and value continuing to grow.
 
He expressed confidence that export growth would strengthen further as global conditions stabilise, reported Economic Times.
 
Highlighting the proposed India-UK Comprehensive Economic and Trade Agreement, expected to come into force on July 15, 2026, Mishra said the agreement would open up substantial opportunities for MSME exporters.
 
He said the government is aware of the support required by the MSME sector and has developed multiple initiatives to help enterprises benefit from trade agreements.
 
Export Promotion Mission to Strengthen Ecosystem 
 
Mishra also highlighted the recently launched Rs 25,060 crore Export Promotion Mission, which will be implemented over five years until 2030 to strengthen India's export ecosystem.
 
He said the mission comprises two components, Niryat Disha, focusing on market access, logistics, warehousing and trade intelligence, and Niryat Protsahan, which provides interest subvention and financial assistance to eligible exporters.
 
Describing it as a comprehensive support programme, he said the mission extends beyond financial assistance to cover participation in trade fairs, buyer-seller meets, trade compliance, product testing, packaging, and pre- and post-shipment credit.
 
E-Commerce Seen as Major Export Growth Driver 
 
Mishra also identified e-commerce as a major growth opportunity for MSMEs, saying digital platforms can significantly expand market access for Indian manufacturers.
 
He said doubling India's e-commerce exports over the next two to three years could add more than USD 10 billion to the country's overall exports.
 
He further highlighted the role of the Export Credit Guarantee Corporation (ECGC) and government-backed credit guarantee mechanisms in supporting exporters, particularly MSMEs shipping smaller consignments to overseas markets.
 
India Targets USD 1 Trillion Merchandise Exports 
 
On India's export outlook, Mishra said the country is targeting USD 1 trillion in merchandise exports over the next five years.
 
He noted that while FTAs will play an important role, achieving the target will require a combination of trade agreements, greater adoption of e-commerce, improvements in product quality and easier access to export finance.
 
(KNN Bureau)