Modi Says India’s Trade Strategy Anchored In Strength, MSME Focus

New Delhi, Feb 16 (KNN) Prime Minister Narendra Modi has said India is entering into historic trade deals from a position of strength, asserting that the vision of ‘Made in India’ has infused micro, small and medium enterprises (MSMEs) with renewed confidence and competitiveness.
 
In an interview to Press Trust of India (PTI), the Prime Minister said trade competitiveness goes beyond tariff reductions and includes liquidity access, certification, technology adoption and compliance with global standards.
 
“Our stance on ‘Zero Defect, Zero Effect’ has resonated deeply with youth, start-ups and MSMEs,” he said, adding that India’s free trade agreements (FTAs) are structured to reduce non-tariff barriers and expand market access for sectors such as textiles, leather, processed food, engineering goods, chemicals, handicrafts and gems and jewellery.
 
The Prime Minister said the objective is to transform MSMEs from peripheral suppliers into technologically upgraded, globally integrated and export-oriented enterprises that anchor India’s participation in global value chains.
 
Referring to recently concluded trade arrangements with Australia, New Zealand, the UK, the EU and the US, he said these agreements provide MSMEs in labour-intensive sectors with access to near-zero or significantly lower tariffs compared to competing exporting nations. 
 
He added that the agreements also support research and development, testing, certification and environmental sustainability initiatives for smaller enterprises.
 
“These agreements are designed not just to increase trade volumes but to embed Indian MSMEs into global markets,” he said, noting that global brands across sectors such as smartphones and aviation have increasingly integrated Indian MSMEs into their supply chains.
 
The Prime Minister emphasised that India’s trade policy now deliberately places MSMEs at the centre of global economic integration, aligning with the broader vision of achieving Viksit Bharat by 2047.
 
Alongside external market integration, he highlighted measures aimed at strengthening MSMEs domestically. Citing findings of the Economic Survey, he pointed to sustained growth in bank credit to micro and small enterprises and improved asset quality across the financial system.
 
Budget measures to ease working capital constraints include expanded credit guarantee coverage, strengthened receivables financing through TReDS platforms, rationalisation of GST processes to reduce working capital blockages, and continued prioritisation of MSME lending by banks. 
 
Public sector banks have also introduced enhanced credit assessment frameworks to facilitate smoother credit flow to smaller firms, he added.
 
(KNN Bureau)