By Aroalo Business Desk
Published on aroalo.in | Economy | June 23, 2025
New Delhi:
Amid a global economic slowdown, India’s Micro, Small, and Medium Enterprises (MSMEs) have pulled off what many thought improbable—a robust 20% year-on-year growth in exports in FY 2024-25. This achievement stands in stark contrast to the sluggish export performance of many global economies struggling with inflation, trade disruptions, and geopolitical tensions.
With this surge, India’s MSME sector is not just surviving but thriving, reinforcing its role as the unsung engine behind the country’s economic resilience and global trade presence.
📈 Growth Against the Odds
According to data released by the Ministry of Commerce and Industry, India’s MSMEs collectively contributed over $160 billion to the country’s total exports in FY 2024-25, marking a 20% jump compared to the previous fiscal year.
This uptick is especially significant as it comes at a time when the World Trade Organization had projected a mere 1.7% global trade growth due to weak demand in Europe and the US, coupled with supply chain bottlenecks in East Asia.
“This kind of growth from MSMEs, under current global conditions, is nothing short of extraordinary,” said trade economist Dr. Vivek Rao. “They have turned adversity into opportunity.”
🛠️ What’s Fueling the Surge?
Several factors have contributed to this unexpected export boom:
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Digital Transformation: More MSMEs have adopted e-commerce platforms, B2B marketplaces, and digital payment systems. Initiatives like ONDC and Udyam Portal integration have made onboarding smoother.
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Government Incentives: Schemes such as RoDTEP (Remission of Duties and Taxes on Export Products), PLI (Production Linked Incentives), and easier credit under CGTMSE have empowered businesses to expand operations and go global.
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Diversified Markets: MSMEs have increasingly diversified their export destinations beyond traditional markets like the US and EU, tapping into Latin America, Africa, and Southeast Asia.
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Product Innovation: Whether it’s eco-friendly textiles, ayurvedic wellness products, or precision engineering goods, Indian MSMEs are innovating with products tailored for international demand.
🧵 Sectoral Stars: Who’s Driving the Growth?
While the growth is spread across sectors, some industries have stood out:
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Textiles & Apparel: With global demand rising for sustainable fabrics, Indian MSME textile units from Tamil Nadu, Gujarat, and Punjab saw a 25% rise in orders.
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Engineering Goods: MSMEs in Maharashtra and Karnataka involved in auto components and precision instruments grew exports by over 30%.
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Agro-based Products: Units dealing in processed food, organic spices, and herbal teas tapped into new health-conscious markets abroad.
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Handicrafts & Home Décor: With rising interest in authentic Indian craftsmanship, exports from Rajasthan, Uttar Pradesh, and West Bengal have seen renewed momentum.
🌎 Going Global, Staying Local
Despite their global ambition, many MSMEs are deeply rooted in India’s rural and semi-urban economies. These enterprises are often the largest employers in small towns and are now finding global customers thanks to digital tools and logistics partnerships.
“Earlier, my market was limited to Delhi NCR,” said Meera Patel, founder of a home-based khadi apparel brand in Surat. “Now, 60% of my orders are coming from Australia and Canada. All because I went online during the pandemic.”
Logistics startups like Delhivery, Shiprocket, and Amazon Global Selling have also played a crucial role in enabling MSMEs to export with minimal friction.
💬 Government Speaks
Union MSME Minister Narayan Rane congratulated entrepreneurs for this “visionary resilience” and reiterated the government’s commitment to supporting their global ambitions.
He emphasized upcoming plans such as:
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Expanding the Export Facilitation Centers across Tier-2 and Tier-3 cities
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Providing customized trade intelligence reports
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Streamlining export documentation through digital platforms
“These efforts are not just about numbers. They’re about empowering local businesses to become global champions,” said Rane.
📊 Challenges That Still Linger
Despite this success, MSMEs continue to face hurdles:
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Access to Finance: Many small exporters still lack collateral to qualify for bigger credit lines.
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Compliance Complexities: Navigating foreign trade laws, packaging standards, and tax rebates can be daunting.
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Infrastructure Gaps: Inconsistent power supply, transport issues, and port congestion remain bottlenecks for remote exporters.
Experts warn that sustaining this growth would require structural reforms, capacity-building programs, and deeper integration with global supply chains.
🚀 What Lies Ahead?
With geopolitical realignments making global buyers rethink supply chains, India’s MSMEs have a golden window of opportunity. Their agility, lower costs, and product quality give them a competitive edge over larger players in China and Southeast Asia.
The government is now considering a new “Global MSME Expansion Policy” under which international trade expos, overseas warehousing support, and digital marketing grants will be provided.
India’s goal to reach $2 trillion in exports by 2030 now seems more realistic, with MSMEs playing a central role in this roadmap.
✅ Conclusion
India’s MSMEs have long been labeled as small-scale, but their recent performance proves they are anything but small in ambition or impact. By embracing technology, exploring new markets, and staying resilient, they are rewriting the rules of global trade.
As the world slows down, India’s small businesses are speeding up—and taking the nation with them.