India’s micro, small and medium enterprises (MSMEs) exported goods worth more than Rs 9.52 lakh crore during the first half of FY 2025-26, Parliament was informed on Thursday, highlighting the sector’s pivotal role in driving the country’s export growth and economic resilience.
In a written reply to a question in the Lok Sabha, Minister of State for Micro, Small and Medium Enterprises Shobha Karandlaje said MSME-related exports stood at Rs 9,52,023.35 crore during the April-September period of the current financial year. The figures, she said, were compiled from the Directorate General of Commercial Intelligence and Statistics (DGCI&S) portal, based on identified MSME-linked products.
The minister noted that India’s overall export performance during the period showed strong momentum, with MSMEs emerging as key contributors across multiple sectors. She pointed out that MSMEs play a crucial role in high-value and technology-driven industries, including electronic goods, pharmaceuticals and engineering products, which have witnessed sustained demand in global markets.
“These sectors, where MSMEs form a critical part of the supply chain, have helped maintain export growth despite global economic uncertainties,” Karandlaje said, underlining the importance of small and medium enterprises in supporting India’s manufacturing and trade ambitions.
To further strengthen MSME exports, the minister said the government has rolled out the Export Promotion Mission (EPM), a comprehensive initiative aimed at addressing both financial and non-financial challenges faced by small exporters.
Under the EPM, financial assistance is being extended through the Niryat Protsahan initiative. This component focuses on easing access to trade finance for MSME exporters, a long-standing constraint that has often limited the ability of small firms to scale up exports, fulfil large orders or explore new markets.
By improving the availability of affordable credit and export-linked financing, the government aims to enable MSMEs to compete more effectively with larger global players, the minister said.
In addition to financial measures, Karandlaje highlighted the role of Niryat Disha, the non-financial pillar of the Export Promotion Mission. This initiative focuses on strengthening the overall export ecosystem by addressing structural and operational bottlenecks faced by MSMEs.
Under Niryat Disha, support is being provided to improve export quality standards, enhance regulatory compliance, facilitate market access, streamline logistics, and build institutional capacities. The initiative also seeks to improve awareness among MSMEs about international trade norms, documentation requirements and quality certifications needed to access advanced markets.
“These interventions are designed to make MSME exporters more competitive, compliant and globally integrated,” the minister said.
The government also underlined the role of GST rationalisation in supporting MSME growth. According to Karandlaje, lower GST rates on raw materials and services have reduced input costs for small businesses and start-ups, enabling them to improve margins and reinvest in their operations.
She said that reduced tax burdens have helped MSMEs expand production capacities, invest in innovation and technology, and improve product quality, all of which are essential for competing in international markets.
The GST-related measures, combined with export incentives and ease-of-doing-business reforms, have contributed to a more favourable environment for MSME-led exports, the minister added.
The government noted that the policy push for MSMEs has had a broader impact on domestic supply chains across key sectors. According to official data, industries such as automobiles, textiles, food processing, logistics and handicrafts have benefited from stronger MSME participation, leading to improved efficiency and export readiness.
MSMEs, which often serve as ancillary units and specialised suppliers, play a critical role in linking domestic manufacturing with global value chains. Strengthening these linkages has supported not only exports but also employment generation and regional economic development, particularly in semi-urban and rural areas.
Reiterating the government’s commitment to the sector, Karandlaje said MSMEs remain central to India’s vision of inclusive and sustainable economic growth. With millions of enterprises spread across the country, MSMEs contribute significantly to employment, innovation and entrepreneurship.
She said the government’s focus is on creating an enabling ecosystem where MSMEs can grow in scale, adopt new technologies and access global markets without facing disproportionate regulatory or financial barriers.
While the data reflects only the first half of the financial year, officials as quoted in media expressed confidence that MSME exports would continue to perform strongly in the remaining months of FY26, supported by policy interventions, improving global demand in select sectors and greater integration of Indian MSMEs into international supply chains.
