MSME Export Share Rises to 48.55% as Govt Launches New Export Promotion Mission

The measures outlined by the Minister signal the Government’s strategic focus on transforming MSMEs into globally competitive, export-ready enterprises.

The latest export data highlights a remarkable surge in India’s MSME sector, with its contribution to total merchandise exports increasing from 45.74% in 2023–24 to 48.55% in 2024–25 (USD value). This growth reflects rising manufacturing strength, greater global demand for Indian MSME products, and improved trade facilitation measures implemented by the Government.

In a written reply to the Rajya Sabha, Minister of State for Micro, Small and Medium Enterprises Sushri Shobha Karandlaje outlined a comprehensive set of initiatives aimed at accelerating MSME integration into global value chains, easing operational challenges, and fostering long-term competitiveness.

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Export Promotion Mission: A Comprehensive Ecosystem for MSME Growth

To further strengthen exports — particularly from MSMEs — the Government has approved a new Export Promotion Mission (EPM) that provides a structured, multi-tiered approach to boosting India’s global trade presence.

Key Components of EPM:

1. NIRYAT PROTSAHAN: Financial Empowerment for Exporters

This initiative focuses on trade finance facilitation for MSMEs, addressing key challenges such as:

• Access to affordable credit

• Working capital needs

• Risk mitigation for export orders

It aims to reduce financial bottlenecks that often constrain MSME exporters despite strong market demand.

2. NIRYAT DISHA: Non-Financial Export Support

Designed to strengthen India’s export ecosystem, this component will provide:

• Export-quality upgrades & compliance support

• Assistance in meeting global standards

• Market-access and diversification guidance

• Logistics facilitation

• Ecosystem-building and exporter capacity enhancement

Together, these initiatives aim to prepare MSMEs not only to enter global markets but to thrive sustainably.

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GST Rationalisation Strengthens Local Supply Chains

The Government’s comprehensive GST rationalisation has significantly reduced tax rates on key inputs. This has:

• Lowered production costs

• Made raw materials and services more affordable

• Enabled MSMEs and start-ups to scale operations

• Encouraged investment in innovation

• Improved competitiveness at domestic and international levels

Sectors such as automobiles, textiles, food processing, logistics, and handicrafts are expected to benefit substantially.

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Additional Government Initiatives to Boost MSME Competitiveness

The Minister highlighted several other schemes aimed at making Indian MSMEs globally competitive:

1. PM Gati Shakti National Master Plan

Provides integrated multimodal logistics planning, reducing transit time and improving export efficiency.

2. National Logistics Policy (NLP)

Aims to build a cost-effective, technology-driven logistics network that boosts business competitiveness.

3. Credit Guarantee Scheme for Exporters (CGSE)

• Provides 100% credit guarantee coverage through NCGTC

• Up to ₹20,000 crore additional credit for exporters

• Benefits MSMEs needing larger export finance windows

4. International Cooperation Scheme

Supports MSMEs by funding their participation in:

• International exhibitions

• Trade fairs

• Buyer-seller meets

• Seminars and conferences

It also reimburses a range of export-related expenses.

5. Micro and Small Enterprises – Cluster Development Programme (MSE-CDP)

Aims to enhance productivity and competitiveness through:

• Creation of Common Facility Centres (CFCs)

• Infrastructure upgrades in new or existing industrial estates

• Cluster-based development for holistic growth

6. MSME Competitive (Lean) Scheme

Helps MSMEs adopt Lean Manufacturing Techniques, reducing:

• Rejection rates

• Production wastage

• Raw material movement inefficiencies

• Overall product costs

This scheme enhances both domestic and export competitiveness.

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A Strong Push Toward Global Value Chain Integration

The measures outlined by the Minister signal the Government’s strategic focus on transforming MSMEs into globally competitive, export-ready enterprises. With rising export contributions, financial and technical support systems, and improved logistics, India’s MSME sector is positioned to play an even larger role in driving economic growth and strengthening the nation’s global trade footprint.