Lok Sabha Question No. 417 (STARRED), answered on 2025-08-21
Subject: Integration of MSMEs with Global Value Chains
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri E T Mohammed Basheer, Ms. S Jothimani

## GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA STARRED QUESTION NO. *417 TO BE ANSWERED ON 21.08.2025

## INTEGRATION OF MSMEs WITH GLOBAL VALUE CHAINS

## *417. SHRI E T MOHAMMED BASHEER:

MS. S JOTHIMANI:

Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:

(a) whether the Government is aware of the need of improving integration of Micro, Small and Medium  Enterprises  (MSMEs)  with  global  value  chains  and  strengthen  their  participation  in international trade and if so, the details thereof;

- (b) the key global challenges faced by MSMEs in international markets;
- (c) the impact of global economic factors on the growth and sustainability of MSMEs;

(d) the  initiatives  taken  to  enhance  the  global  competitiveness  of  Micro,  Small  and  Medium Enterprises (MSMEs) for access to international markets;

(e) the status of India's Micro, Small and Medium Enterprise (MSME) sector in comparison to other major economies in terms of productivity, innovation and ease of doing business; and

(f) the  future  strategies  being  considered  by  the  Government  to  address  global  challenges  and position Indian MSMEs as key players in the international market?

## ANSWER

MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI JITAN RAM MANJHI)

(a) to (f): A statement is laid on the Table of the House.

## STATEMENT  REFERRED  TO  IN  REPLY  TO  PART  (a)  TO  (f)  OF  THE  LOK  SABHA STARRED QUESTION NO. *417 FOR ANSWER ON 21.08.2025.

(a) to (f): Yes  Sir.  The  government  is  aware  of  the  need  of  improving  integration  of  Micro, Small and Medium Enterprises (MSMEs) with global value chains and strengthen their participation in international trade. This leads to increase economic  growth, job creation, and global competitiveness for the country.

Some of the challenges faced by MSMEs in International Markets include limited access to information on Global Markets, access to finance, formalization of  MSMEs,  Research  & Development  and  Innovation.  Globalization  can  offer  opportunities  like  access  to  international markets  and  foreign  investment  in  the  growth  and  sustainability  of  Micro,  Small,  and  Medium Enterprises  (MSMEs).  To  address  some  of  these  challenges,  Ministry  is  implementing  several initiatives/Schemes and policies:

- (i) The  International  Cooperation  (IC)  Scheme  aims  to  capacity  build  MSMEs  to  enter  the export  market.  Under  the  Market  Development  Assistance  component  of  the  Scheme, financial assistance is provided to MSMEs for participation in International Fairs/Exhibitions, as well as for organizing International Conferences in India to continuously  update  themselves  to  meet  the  challenges  emerging  out  of  changes  in technology,  changes  in  demand,  emergence  of  new  markets,  etc.  Under  the  Capacity Building  for  First  Time  Exporters  component,  reimbursement  is  provided  to  Micro  and Small  Entrepreneurs  on  export  shipments  for  costs  incurred  on  Registration  -  Cum  Membership Certification with Export Promotion Councils, Export Insurance Premium and Testing and Quality Certification for Exports of products and services.
- (ii) Ministry  of  MSME  has  also  set  up  a  dedicated  support  system  for  export  promotion  by establishing  65  Export  Facilitation  Centres  (EFCs).  These  EFCs  support  MSMEs  by disseminating  information  on  various  Schemes  and  supports  available  for  the  MSMEs, assisting exports in linking them with financial institutions such as Non Banking Financial Companies, New Fintech start-ups, to avail credit at competitive rates etc.
- (iii) MSME Champions Scheme with three sub schemes, MSME-Sustainable (ZED) Certification Scheme, MSME-Competitive (LEAN) Scheme and MSME-Innovative Scheme (Incubation, Design & Intellectual Property Rights) is a holistic approach to unify, synergize and converge with various Schemes and interventions to enable MSMEs to become globally competitive.  Raising  and  Accelerating  MSME  Performance  (RAMP)  Scheme  aims  to provide support to MSMEs through increased access to technological upgradation, market and credit by strengthening of Central and State Agencies. In order to support MSMEs for adoption  of  sustainable  and  eco-friendly  practices  and  technologies,  renewable  energy sources  and  promotion  of  Circular  Economy,  Ministry  has  launched  Green  Investment  & Financing for Transformation (GIFT) Scheme and Scheme for Promoting of Investment in Circular  Economy  (SPICE).  Further,  in  order  to  provide  Micro  and  Small  Enterprises Access to Digital Marketing, Ministry has launched the Trade Enablement and Marketing Initiative (TEAM).

- (iv) Coir Board is implementing Coir Vikas Yojana, a central sector Scheme with a component for promotion of coir exports through its various export promotion activities.
- (v) Ministry also facilitates collateral free credit for Micro and Small Enterprises through Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) Scheme. The guarantee limit has been raised to Rs. 10 Crore.
- (vi) The  revised  criteria  for  classification  of  MSMEs  widens  the  ambit  of  the  MSME  sector. Under  the  revised  criteria,  units  with  investments  up  to  ₹2.5  crore  are  now  classified  as micro  enterprises,  from  the  previous  threshold  of  ₹1  crore.  The  turnover  limit  has  been revised from ₹5 crore to ₹10 crore. Units with investments up to ₹25 crore are classified as small enterprises, from the earlier ₹10 crore. The turnover limit for such enterprises has been doubled  from  ₹50  crore  to  ₹100  crore.  Units  with  investments  up  to  ₹125  crore  are  now classified as medium  enterprises,  from  the  earlier  limit  of  ₹50  crore.  For  medium enterprises, the turnover limit has been doubled to ₹500 crore.
- (vii) Udyam registration Portal facilitates the  online registration  of  MSMEs  and Udyam Assist Platform  brings  Informal  Micro  Enterprises  (IMEs)  under  the  formal  ambit  for  availing benefits under Priority Sector Lending and Schemes of Ministry.

The MSME sector in India contributes significantly to the national economy. Indian MSMEs have demonstrated resilience and growth. The Government is actively pushing to support MSMEs through  Digitalization  and  Technological  Upgradation,  Financial  Inclusion  and  Access  to  Credit, Skill Development and Human Capital, Green Manufacturing and Sustainability to build competitiveness of MSMEs to establish them as key players in Global Value Chain.

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