India Steps Up Global Play for MSMEs with New Export Support Initiatives

In a bid to deepen India’s export footprint and bolster the global competitiveness of its Micro, Small and Medium Enterprises (MSMEs), the Government has reaffirmed a suite of targeted initiatives designed to ease market access, encourage digital transformation, and enhance compliance with global quality standards.

Minister of State for MSMEs, Smt. Shobha Karandlaje, while responding to a written question in the Rajya Sabha, highlighted the multi-pronged approach being undertaken to create a globally competitive ecosystem for Indian MSMEs long considered the backbone of India’s export ambitions.

Policy in Action

Among the standout interventions is the Rebate of State and Central Levies and Taxes (RoSCTL), aimed specifically at boosting the competitiveness of India’s labour-intensive textile sector. Implemented since March 2019, this scheme has enabled textile exporters to claim rebates on taxes previously embedded in their cost structure making Indian textiles more price-competitive globally.

Complementing this is the Remission of Duties and Taxes on Exported Products (RoDTEP), which has been operational since April 2021. The RoDTEP replaces the older MEIS system, providing WTO-compliant support to exporters across sectors by reimbursing non-creditable taxes and duties.

These schemes are part of a broader agenda to decentralize export capacity, most visibly embodied in the Districts as Export Hubs initiative. This ambitious project identifies local products with export potential in each district and supports small manufacturers through targeted interventions like logistics facilitation, capacity building and regulatory easing. By turning every district into a node in India’s export map, the initiative aims to democratize trade opportunity beyond urban-industrial clusters.

Digital Tools Meet Global Ambition

To streamline trade processes and enhance Free Trade Agreement (FTA) participation, the government has launched a Common Digital Platform for Certificate of Origin a key step in ensuring authenticity of goods and simplifying cross-border trade documentation.

MSMEs are also being encouraged to plug into global market ecosystems through the International Cooperation (IC) Scheme, which enables them to participate in international trade fairs and exhibitions. This platform not only provides first-time exporters with exposure but also supports them in securing certifications, export insurance and export promotion council memberships essential tools in gaining credibility with international buyers.

To make Indian MSMEs more agile and globally aligned, the Ministry has also bundled key initiatives under the MSME Champions Scheme, which includes:

• ZED Certification for sustainable and quality manufacturing.
• LEAN Scheme to streamline operations and reduce inefficiencies.
• Incubation and IPR support for fostering innovation-led product design and branding.

Together, these initiatives are helping small businesses go from local relevance to global competitiveness.

Strengthening the Export Support System

The institutional backbone for this push includes 65 Export Facilitation Centres (EFCs) set up across the country. These centres function as knowledge and assistance hubs for MSMEs helping them understand policies, prepare documentation and connect with trade promotion bodies.

Meanwhile, the government’s Trade Enablement and Marketing (TEAM) Initiative, tied closely to the Open Network for Digital Commerce (ONDC), is a critical move to help 5 lakh MSEs at least 50% of which are women-owned enter the digital commerce space. From catalogue creation to linking with Seller Network Participants (SNPs), this scheme promotes both domestic digital presence and export readiness.

Another noteworthy initiative is NSIC’s e-Country Pavilion on MSME Global Mart, a virtual cross-border trade platform that allows Indian MSMEs to showcase products and connect with buyers across geographies. It complements the Trade Connect e-Platform, which serves as an information and engagement hub connecting Indian Missions abroad with the domestic export community.

Sectoral and Strategic Relevance

These steps come at a critical time when India is aiming to position itself as a trusted global manufacturing and services hub, especially amidst shifting global supply chains and trade realignments post-pandemic. With key export partners like the UAE, US and EU pushing for high compliance and sustainable sourcing, the government’s alignment of schemes toward quality, traceability, and innovation is timely.

India’s MSME exports, which contribute nearly 45% of total outbound trade, are central to the country’s ambition of reaching $1 trillion in exports by 2030. In 2024–25 alone, MSME-led exports saw a 13.5% rise, particularly in sectors like textiles, pharmaceuticals, processed foods, automotive components and IT-enabled services.

The Road Ahead

With the current mix of policy incentives, digital platforms, global networking support and institutional partnerships, India is gradually creating an ecosystem where even the smallest enterprise has the infrastructure to scale globally. However, greater awareness, easier credit access and cluster-based export support will remain key levers.

As global trade continues to evolve and digital-first exports become the norm, India’s MSME sector is being readied not just to participate but to lead.