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India's MSMEs need resilient supply chains to compete globally

Industry specialists have called for strengthened supply chain infrastructure across India's micro, small and medium enterprises sector, citing vulnerabilities that limit growth and export potential. Experts argue that supply chain resilience is critical for MSMEs to navigate market volatility and international competition.

LSN India · 5 September 2026

India's MSMEs need resilient supply chains to compete globally

Industry analysts have underscored the need for more robust supply chain systems within India's MSME ecosystem, identifying gaps that constrain productivity and scalability across the sector. Fragmented logistics networks, limited access to working capital, and inadequate coordination between suppliers and manufacturers have emerged as key bottlenecks affecting operational efficiency.

Experts emphasize that stronger supply chain architecture would enable MSMEs to reduce production costs, improve delivery timelines, and enhance product quality—factors essential for competing in both domestic and export markets. Many small and medium enterprises currently lack real-time visibility into their supply chains, making them vulnerable to disruptions and unable to respond swiftly to demand fluctuations.

The push for supply chain strengthening comes as India's MSME sector faces intensifying pressure from global competition and evolving consumer expectations. Specialists recommend investment in digital infrastructure, standardized logistics protocols, and collaborative platforms that would allow smaller enterprises to pool resources and optimize procurement processes.

Government initiatives and industry bodies are increasingly focusing on supply chain modernization as a lever for broader MSME growth. Enhanced connectivity between suppliers, manufacturers, and distributors could unlock significant productivity gains while positioning India's smaller enterprises more competitively in regional and international markets.