MSMEs seek government aid to leverage India's growing FTA network

India's growing portfolio of free trade agreements presents significant opportunities for small and medium enterprises, but only if they receive adequate government support, according to MSME representatives. Laghu Udyog Bharati has called on policymakers to implement a comprehensive support framework to help smaller firms navigate and benefit from the country's expanding network of bilateral and regional trade pacts.

The industry body has identified three critical areas requiring immediate intervention: marketing assistance, technology upgradation, and export facilitation. MSMEs currently lack the resources and infrastructure to independently identify opportunities in newly opened markets or to compete with larger firms that already possess established distribution networks and technical capabilities.

Without targeted handholding measures, smaller enterprises will struggle to translate trade agreement benefits into tangible business growth, representatives warned. The government's support framework should include subsidised trade missions, market intelligence services, and financing schemes specifically designed for MSME exporters attempting to enter new markets under preferential trade terms.

As India pursues an ambitious FTA expansion strategy to strengthen regional economic ties and diversify export markets, ensuring broad-based participation from the MSME sector remains crucial. Policy experts suggest that inclusive growth strategies must accompany trade liberalisation efforts to prevent concentration of FTA benefits among larger corporations.