Prime Minister Narendra Modi has emphasised the importance of India’s expanding network of free trade agreements to help MSMEs increase their global footprint, highlighting recent pacts and the sector’s crucial role in the economy.
Prime Minister Narendra Modi used his Independence Day address on Friday to press India’s micro, small and medium-sized enterprises to use the country’s expanding network of free trade agreements to push further into overseas markets.
Speaking from the Red Fort, Modi said India has concluded trade pacts with about 40 countries since 2014 and that the agreements create a significant opening for smaller businesses to sell more abroad, particularly in textiles, machinery and medicines. He said Indian firms must meet global standards if they want to compete successfully in those markets.
The prime minister said recent agreements with the United Arab Emirates, Mauritius, Australia, the UK, the EFTA bloc and Oman have already broadened export opportunities, while talks with the European Union and New Zealand have been completed. He argued that sectors such as textiles, stretching from Ludhiana to Tiruppur, and shrimp exporters from states including Kerala, Gujarat, Tamil Nadu and West Bengal, could benefit if they are able to scale up quality and price competitiveness. The government has also framed the shift as part of a wider push for self-reliance at a time when countries are increasingly protecting their own interests.
Official data underline why the sector matters. The Economic Survey 2025-26, released by the government, said MSMEs account for about 35.4% of manufacturing, 48.58% of exports and 31.1% of gross domestic product. It also said MSME credit was the main driver of industrial credit growth in the first half of FY26, and that the Self-Reliant India Fund had invested ₹15,442 crore across 682 MSMEs as of November 30, 2025.
With more than 7.47 crore enterprises employing over 32.82 crore people, MSMEs remain India’s second-largest employer after agriculture. Modi’s pitch was that the sector’s domestic weight should now be matched by a stronger global footprint, provided firms can improve standards, sharpen competitiveness and seize the tariff cuts embedded in new trade agreements.
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