Indian Economy News

Free Trade Agreements Create New Opportunities for MSMEs to Integrate into Global Supply Chains: Union Minister of State for Commerce and Industry Mr. Jitin Prasada

Free Trade Agreements (FTAs) are creating new opportunities for India’s Micro, Small, and Medium Enterprises (MSMEs) to expand globally and integrate into international supply chains. Speaking at the FICCI FLO National MSME Awards Ceremony on March 9, 2026, Union Minister of State for Commerce and Industry Mr. Jitin Prasada highlighted that India’s recent FTAs with regions such as the European Union, the United Kingdom, Australia, and New Zealand are significantly expanding market access for Indian manufacturers. With nearly 65% of developed markets now covered under India’s FTAs, MSMEs are well-positioned to tap into global demand and strengthen their presence in international trade. The statement further emphasized that MSMEs form the backbone of India’s economy and play a crucial role in employment generation, innovation, and strengthening local industries.
The government is encouraging MSMEs to transition from low-cost, scale-driven manufacturing to quality-led growth to meet the standards required in developed markets. The statement noted that global markets increasingly demand high-quality products, and Indian consumers are also becoming more quality-conscious due to rising digital access and exposure to global trends. The statement also highlighted the growing role of Artificial Intelligence (AI) across sectors such as manufacturing, healthcare, transportation, and services, urging MSMEs to adopt AI-based technologies to improve productivity, efficiency, and decision-making. Additionally, the National Small Industries Corporation’s Trade Enablement & Marketing (TEAM) initiative aims to onboard five lakh MSMEs onto the Open Network for Digital Commerce (ONDC), with a target that 50% of these enterprises will be women-led, promoting inclusive and digitally empowered growth of the MSME ecosystem.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.