MSMEs Must Improve Quality, Competitiveness to Leverage FTA Opportunities: MSME Secretary

New Delhi, Oct 14 (KNN) Free trade agreements (FTAs) and economic partnerships are opening new opportunities for Indian micro, small and medium enterprises (MSMEs) in international markets, but improving quality and competitiveness will be essential to benefit from them, Bharat Khera, Secretary, Ministry of MSME, said on Tuesday.

“MSMEs are expanding global markets because there are a lot of new opportunities that are getting unlocked as a result of the FTAs and economic partnerships which are being entered into. And there is one single thing which MSMEs need to focus on, that is their quality and competitiveness,” the Secretary noted.

Speaking to ANI on the sidelines of the Confederation of Indian Industry’s (CII) 23rd Global MSME Business Summit 2026, Khera said the ministry was following a comprehensive approach to strengthen the sector and increase its contribution to the vision of Viksit Bharat 2047.

He outlined five key priorities: enterprise formalisation, access to finance, quality improvement and technology adoption, export competitiveness, and entrepreneurship and skill development.

Formalisation And Access To Finance

Khera noted that sustained efforts to bring informal businesses into the formal economy had resulted in 9.8 crore enterprises registering on the Udyam platform, helping them access institutional support.

He highlighted the role of initiatives such as the Credit Guarantee Scheme for Micro and Small Enterprises and the Trade Receivables Discounting System (TReDS) in improving access to finance.

“TReDS discounting was Rs 40,000 crore in 2022-23 and last financial year it touched Rs 3.5 lakh crore. So there has been a major jump in financing through TReDS,” Khera said.

Outstanding credit to the MSME sector had increased fourfold, from around Rs 10 lakh crore a decade ago to nearly Rs 40 lakh crore, he added.

Quality And Technology Adoption

On improving quality and productivity, Khera highlighted the Zero Defect, Zero Effect (ZED) scheme, which encourages MSMEs to adopt quality standards and improve manufacturing practices.

He noted that while the number of bronze-level certifications had increased, the adoption of silver and gold certifications remained limited. The ministry would work with the Quality Council of India (QCI) and the National Productivity Council (NPC) to encourage more enterprises to adopt higher standards.

Khera also stressed the need to make technology more accessible to businesses of all sizes and called for closer collaboration between industry and government technology centres to support adoption among MSMEs.

Export Preparedness And Industry Collaboration

On exports, he said first-time exporters needed greater support, particularly small businesses in remote areas that face logistical challenges. Improving export preparedness and facilitation would help them access international markets, he added.

Khera also called on larger companies to support MSMEs through innovation, technology transfer, vendor development and integration into supply chains.

He noted that enterprises that had emerged as industry leaders under the Production Linked Incentive (PLI) schemes across 13-14 sectors could help develop smaller businesses. Vendors in Tier-II and Tier-III cities, many of which are MSMEs, would also need to meet quality standards to improve product quality across supply chains.

Stronger government-industry coordination would help generate employment, boost exports, strengthen manufacturing and supply chains, and contribute to the vision of Viksit Bharat 2047, Khera said.

(KNN Bureau)