By Sarvadnya Kulkarni, CEO, General Instruments Consortium
Over the last few years, India has been quietly setting the stage for a new phase in its manufacturing journey. Global supply chains are being reconsidered, trade relationships are being recalibrated, and businesses across continents are actively looking to de-risk their sourcing strategies. In this churn, India is no longer just an alternative. It is increasingly being seen as a viable, long-term manufacturing base for the world.
The numbers tell their own story. India’s total exports touched a record $820.93 billion in FY 2024–25, growing 5.5 percent over the previous year. Merchandise exports stood at $437.4 billion and services at $383.5 billion. What is often under-appreciated is the role MSMEs played in this growth. MSME exports rose from ₹3.95 lakh crore in FY21 to ₹12.39 lakh crore in FY25, a nearly three-fold jump in four years. Their share in India’s total exports reached almost 46 percent by May 2024.
This is not incremental progress. It is a structural shift. And it places India’s MSMEs at the centre of the export manufacturing story that is now unfolding.
A rare opening, but not a guaranteed one
Global buyers today are not chasing the lowest price alone. They are looking for predictability, compliance, and partners who can scale responsibly. The disruptions of recent years have changed procurement priorities. Resilience now matters as much as cost.
This creates a genuine opening for Indian manufacturers. Exports of electronics have grown over 32 percent, while engineering goods and pharmaceuticals have seen growth of over 9 percent. Non-petroleum merchandise exports reached $374 billion, up 6 percent year-on-year, reflecting a gradual but important shift away from raw materials towards higher-value finished goods. Export growth to the United States alone rose 12 percent, helped in part by higher tariffs on Chinese goods.
Sectors such as electronics, engineering components, auto parts, chemicals, garments, renewables, and pharmaceuticals are seeing sustained overseas interest. Many global firms are actively onboarding new supplier bases. India features prominently in those conversations.
But opportunity does not automatically translate into orders. The real question is preparedness.
Quality and compliance are now the entry ticket
For MSMEs aspiring to be part of global supply chains, quality can no longer be personality-driven or dependent on experience alone. International buyers expect systems, not assurances.
Today’s expectations include documented processes, traceability of materials, standardised testing protocols, and consistent repeatability in output. Timely deliveries are no longer a differentiator; they are assumed. Compliance with global standards is not an additional requirement, it is the minimum threshold.
This is not about raising the bar artificially. It reflects the reality of modern manufacturing and global trade. MSMEs that invest early in robust quality systems find that buyer trust builds faster and relationships last longer.
Technology does not need to be intimidating
There is a persistent misconception among MSMEs that technology adoption requires massive capital expenditure or fully automated plants. That is rarely the case.
Simple digital interventions such as basic ERP systems, digital inspection records, preventive maintenance schedules, and real-time production tracking can significantly improve efficiency and transparency. For many buyers, these systems matter as much as production capacity because they reduce risk.
The objective is not to leapfrog into advanced automation overnight, but to begin the journey. Firms that start early tend to scale faster and respond better to the operational discipline export markets demand.
Reliability is a function of communication
Export manufacturing is a team sport. It involves constant coordination between suppliers, quality inspectors, logistics partners, and customers across borders. In this environment, gaps in communication can be as damaging as gaps in production.
MSMEs that cultivate a culture of proactive communication stand apart. Regular updates, clear documentation, and transparency around timelines go a long way in building credibility. Global buyers value suppliers who flag issues early rather than explain failures later.
Reliability, more often than not, comes down to how well information flows across the chain.
People remain the core enabler
As export orders increase in complexity, skills become a decisive factor. From machine operators and welders to quality engineers and documentation teams, MSMEs need people who understand not just the process but the rationale behind it.
Training is no longer limited to technical competence. It is about building confidence and accountability. Teams that understand the “why” behind compliance requirements tend to execute better and sustain higher standards over time.
In many cases, human capability becomes the strongest differentiator for MSMEs competing globally.
Financial readiness cannot be an afterthought
Exports bring scale, but they also bring longer cash cycles, currency exposure, and higher working capital needs. MSMEs must prepare for this reality.
Export credit schemes, trade insurance, and disciplined working capital management can make the difference between sustainable growth and operational stress. Understanding these financial instruments early allows MSMEs to grow without compromising stability.
The moment is here
India’s manufacturing-for-export story is still being written, but the direction is unmistakable. The number of exporting MSMEs has already grown by over 200 percent in the last four years. Global doors are open, and expectations are clear.
This transition will not happen overnight. It requires disciplined investment in processes, people, and systems. But MSMEs that start preparing now will be best positioned to capture the next phase of India’s export growth.
The opportunity is real. The timing is right. And the next chapter of India’s manufacturing success will depend on how ready its MSMEs are to operate confidently on the global stage.
