MSMEs Need To Improve Quality of Products To Benefit From FTAs: Bharat Khera

New Delhi: Indian micro, small and medium enterprises (MSMEs) need to improve product quality, embrace technology and strengthen export capabilities to leverage opportunities from free trade agreements and shifting global supply chains, MSME secretary Bharat Khera said on Tuesday.

Addressing the CII Global MSME Summit here, Khera said the government is pursuing a comprehensive approach to strengthen the sector's competitiveness, focusing on five key areas -- formalisation, access to finance, technology adoption, export competitiveness and entrepreneurship & skilling.

Highlighting that global supply chains are being reconfigured and technology is transforming, he said that enterprises certainly need to respond with greater agility and resilience. “Strengthening the competitiveness of Indian MSMEs is essential to our economic growth and Viksit Bharat 2047 vision,” Khera emphasised.

He said the country's MSMEs needed to ensure that their products and services met international quality standards as their footprint in global markets grows. “We also need to make sure that while maintaining competitive pricing, consistent quality and reliable delivery schedules are adhered to, to meet the expectations of international buyers,” he added.

Khera further said that the testing infrastructure in the country has to be augmented. “We also have to make sure that whatever products we are producing, whatever services we are producing, conform to the quality standards that are expected of the international global markets,” he said.

The secretary, however, stressed the need to improve technology adoption, access to skills and finance, and strengthen partnerships between the government and industry to support the sector's transformation. “On formalisation, 9.8 crore enterprises were registered on the Udyam platform, while highlighting improved access to finance through initiatives such as the Trade Receivables Discounting System (TReDS),” he said.