Micro, small, and medium-sized businesses (MSMEs) are crucial to India’s development into  one of the world’s biggest and most powerful marketplaces. Free trade agreements (FTAs),  such as the recently reinforced UK-India FTA framework, are giving Indian MSMEs  substantial opportunity to enter international public procurement markets, according to Ajit  B. Chavan, Additional Chief Executive Officer of the Government e-Marketplace (GeM). 

Speaking on the changing role of Indian businesses, Chavan emphasized that the goal of  GeM and the Indian government is to help MSMEs maintain their competitiveness in the  home market while also growing their global presence. According to him, the three  fundamental elements of this approach are organized market expansion, quick digital  adoption, and legislative support. When combined, these components provide a robust  connection between the growth of local businesses and access to foreign markets,  guaranteeing that Indian MSMEs are prepared to meet global standards and grow effectively. 

MSMEs as Catalysts for Economic Development 

Chavan reaffirmed that MSMEs are still essential to India’s GDP contribution, job creation,  and innovation. He emphasized the significance of creating a comprehensive ecosystem that  incorporates financial inclusion, simpler market access, digital literacy, and well-defined  legislative frameworks in order to maintain this momentum. He claims that in order to create  a robust, inclusive, and future-ready economy that is in line with India’s larger growth goals, 

it is crucial to support startups, women entrepreneurs, and SC/ST-led businesses

He pointed out that innovation is ingrained in Indian MSMEs’ DNA. These businesses may  create competitive goods and services for both home and foreign markets with the correct  support networks and cooperative platforms. This strategy guarantees fair growth across  areas, industries, and communities while also bolstering India’s standing as a worldwide  supplier. 

Support for Policies for Inclusive Development 

Affirmative policy initiatives are actively assuring equitable chances for women-led, SC/ST led, and minority-owned firms, Chavan emphasized, highlighting the government’s  commitment on openness, efficiency, and inclusiveness. In order to assist smaller businesses  successfully engage in public procurement procedures, strategic alliances with industry  associations and international organizations like UN Women are further improving outreach  and digital literacy. 

In order to address the structural issues MSMEs confront, he continued, continuing policy  interventions, capacity-building projects, and mentorship programs are constantly being  improved. These focused initiatives seek to level the playing field so that businesses of all  sizes and industries may take advantage of opportunities and experience long-term success. 

Financial Enablement and Digital Platforms 

MSME growth is now greatly aided by digital public procurement platforms like GeM. GeM  has greatly lowered entry barriers for smaller vendors by improving the transparency,  accessibility, and efficiency of government tenders. Currently, MSMEs account for around  45–46% of all transactions on the platform, with over 44,000 startups, almost 2 lakh women led firms, and about 60,000 SC/ST-led businesses participating. According to Chavan, the  platform successfully democratizes public procurement access. 

Another important area of attention is still financial inclusion. With a focus on reasonable  interest rates, the GeM Sahay program offers collateral-free loans up to ₹10 lakh in a matter  of minutes. MSMEs may concentrate on expanding operations, increasing productivity, and  fostering innovation without being hampered by financial difficulties by combining timely  financial support with digital market access. 

Obstacles and the Path Ahead 

Operational issues including category-based bidding, recurrent contract filings, and product  validation procedures continue to exist despite advancements. Chavan stated that in order to  address these problems, GeM 2.0 would have standardized categories, automatic  notifications, and process simplification to enhance user experience. He emphasized that  ongoing stakeholder input is essential for improving policy while upholding Make in India  principles, compliance, and openness. 

Chavan voiced great hope for India’s future as a major player in the world economy. Indian  MSMEs are well-positioned to prosper because to improved worldwide access made possible  by free trade agreements and a strong, inclusive local ecosystem. In order to develop  sustainably, make a significant contribution to national progress, and strengthen India’s 

position as a top global market, he urged businesses to embrace technology, innovation, and  teamwork.