PM Urges MSMEs To Tap Opportunities From FTAs

Prime Minister Narendra Modi on Saturday said India has finalised free trade agreements (FTAs) with about 40 countries since 2014, presenting a tremendous opportunity for the country's MSMEs, and urged small enterprises to tap these opportunities and not let the chance slip away.

Addressing the country from the ramparts of the Red Fort on the 80th Independence Day, he said there is a need to expand the global reach of Indian products and ensure that goods such as textiles, machinery and medicines find their way into international markets.

However, to achieve this, "we must meet global standards," he said.

"India's global profile is rising. Today, it is becoming a respected nation on the world stage. India possesses a stable political mandate and government, a vibrant democracy, and a robust judicial system, all guided by the Indian Constitution. The world is recognising our capabilities, which is why, since 2014, we have been entering into FTAs with around 40 countries," Modi said.

"Look at the immense opportunity that has arisen, specifically through these trade agreements. I want to urge our MSMEs not to let this chance slip by; we must reach the global stage. Indian products, whether textiles, machinery, or medicines, need to make their way into world markets. We cannot afford to miss this opportunity," he added.

India has recently implemented such pacts with the UAE, Mauritius, Australia, the UK, the EFTA bloc, and Oman. Trade pacts with the 27-nation European Union (EU) and New Zealand have also been finalised.

In such pacts, two trading partners significantly reduce and eliminate import duties on the maximum number of goods traded between them.

"We must offer better quality than what is currently available globally, and at a lower price. Our textiles, spanning from Ludhiana in Punjab to Tiruppur in Tamil Nadu, have the potential to reach the global market," the prime minister said.

He also said that these agreements have opened huge opportunities for the domestic seafood sector.

From Kerala to Gujarat and Tamil Nadu to Bengal, these FTAs are providing huge potential to domestic shrimp exports, Modi said.

"I would like us to capitalise on this situation," he said.

Further, the prime minister said there was a time when he talked about self-reliance, but some people sitting in air-conditioned rooms would question what would happen to globalisation.

Now, over the last decade, the world has stopped talking about globalisation and is moving towards a mindset of taking care of one's own interests, he said.

He added that unfortunately, in these challenging times, countries have played the game of weaponisation of resources to show their status.

Resources such as petrol, diesel, fertiliser, and medicines are being weaponised, he said, adding, "in these times, if we have not moved for self-reliance, how could we have dealt with these challenges. Our preparations are continuously increasing." MSMEs account for about 35.4% of the country's manufacturing, around 48.58% of exports, and 31.1% of GDP.

With over 7.47 crore enterprises employing over 32.82 crore persons, the sector holds its position as the second-largest employer after agriculture.

Globally, MSMEs make up about 90% of businesses and are responsible for over 50% of the total global employment.