Prime Minister Narendra Modi has called on MSMEs to fully leverage India's expanding network of free trade agreements, emphasizing the tremendous opportunities these pacts present for small businesses. Speaking on Independence Day, Modi urged small enterprises to tap these opportunities and not let the chance slip away, as India has finalised FTAs with about 40 countries since 2014. The prime minister highlighted the need to expand the global reach of Indian products, particularly focusing on goods such as textiles, machinery and medicines finding their way into international markets. Former Council for Leather Exports chairman Aqeel Panaruna welcomed the government's FTA move, stating that with progressive trade pacts and foreign trade policy opening new opportunities, India is firmly positioned for sustained growth.
India's exports to Singapore experienced exceptional growth in the first quarter of 2026-27, with shipments surging 101.2% to $6.52 billion during April-June 2026, compared to $3.24 billion in the corresponding period of the previous year, according to commerce ministry data. This dramatic increase demonstrates the significant impact of India's free trade agreements on bilateral trade relationships and validates Modi's call for MSMEs to capitalize on these opportunities.
The Association of South East Asian Nations (ASEAN) region emerged as another key growth driver, with exports rising 61.6% to $14.61 billion in the first quarter of 2026-27, up from $9.04 billion in April-June 2025-26. The South Asian Free Trade Area (SAFTA) region also showed strong performance, with exports increasing 36.6% to $8.40 billion from $6.15 billion in the previous year. Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai noted that with preferential market access now available across several major economies, the real opportunity lies in converting these agreements into export orders.
Among individual FTA partners, Malaysia recorded the second-highest growth rate with exports increasing 75.2% to $2.54 billion, while Australia saw shipments grow 25.2% to $2.68 billion during April-June 2026-27. Sri Lanka also demonstrated strong performance with exports rising 123.8% to $2.35 billion from $1.05 billion in the year-ago period. The India-UK trade agreement, operationalised from July 15, 2026, contributed to exports to the UK growing 11.1% to $3.69 billion during the quarter. Recent FTA implementations include pacts with the UAE, Mauritius, Australia, the UK, the EFTA bloc, and Oman, with trade pacts with the 27-nation European Union and New Zealand also finalised.
MSMEs account for 35.4% of the country's manufacturing, 48.58% of exports, and 31.1% of GDP, making them crucial for India's economic growth. With over 7.47 crore enterprises employing over 32.82 crore persons, the sector holds its position as the second-largest employer after agriculture. FIEO will continue working closely with MSMEs to build awareness on rules of origin, standards and market opportunities, enabling even smaller enterprises to confidently take Indian products to global markets. Globally, MSMEs make up about 90% of businesses and are responsible for over 50% of total global employment, highlighting their strategic importance in India's FTA strategy.
