Monday, August 25, 2025

Spooked by Trump tariffs, MSMEs urge govt to roll out export intelligence portal without delay

Date:

GMIS, planned under the union MSME ministry’s International Co-operation scheme, was envisioned as a one-stop platform for the country’s 66 million MSMEs. However, the system remains non-functional despite being proposed by the ministry’s task force in 2021-22.

Industry lobby group India SME Forum, representing about 100,000 businesses in the country, has written to cabinet secretary T.V. Somanathan and the MSME ministry seeking immediate implementation of the GMIS portal and expedited creation of trade desks in foreign jurisdictions to facilitate MSME export opportunities.

The appeal comes at a time when MSME exporters, who contribute around 45% of India’s total exports, face mounting headwinds, including high tariffs imposed by US President Donald Trump. India SME Forum estimates that besides $30 billion worth of MSME exports, 70,000–80,000 jobs are at risk.

“The repercussions are immediate and severe, with over $30 billion in annual business at risk, and MSMEs being disproportionately impacted due to their limited capacity to absorb such external shocks or pivot rapidly to new markets,” said the letter dated 9 August.

Mint has seen a copy of the letter.

Of the total MSMEs in India, only about 173,000 enterprises export their products, according to the forum. This is due to low awareness, lack of accessible market intelligence, and uncertainty around regulations and logistics.

“Many MSMEs simply do not know which products have demand in which countries, what prices prevail, or how to navigate regulatory and logistical requirements,” the letter said.

A market intelligence system was envisioned by the union MSME ministry’s task force to bridge that gap and use data available from the World Bank, the United Nations, and the Indian government to create the GMIS and fund it through the International Co-operation scheme.

International cooperation scheme is a demand-driven scheme under which financial assistance is provided on a reimbursement basis to eligible state and central government organisations and registered industry associations, societies, and trusts associated with promoting and developing the MSME sector. Industry associations can participate in three events in a year, and in the same event for three years at a stretch under the scheme.

The GMIS would provide information about potential export markets, demand trends, pricing benchmarks, competitive landscapes, logistics networks, and shipping costs, the letter added.

Queries sent to the MSME ministry on Wednesday went unanswered till press time.

Mint reported on 3 August that the union MSME ministry was reviewing the International Co-operation scheme in the face of a global tariff war.

In FY24, the government assisted 545 MSMEs under the International Co-operation scheme with a support of 19.22 crore, according to a Lok Sabha disclosure in March 2025.

“While there is no fixed ratio, India’s exports in 2023-24 supported approximately 32 million jobs, with an estimated 2.5 to 3 million jobs created for every billion dollars of exports,” Vinod Kumar, president, India SME Forum told Mint quoting data from an Exim Bank of India study.

Experts say bolstering MSME exports is critical for India’s growth. “Although India’s GVC (global value chain) participation has risen over the years, it remains below that of major economies and regional competitors. The government can facilitate process innovation, reduce costs, and improve product management within MSME clusters by prioritising efficient logistics, digital linkages, and smart trade infrastructure,” said a NITI Aayog study on the competitiveness of Indian MSMEs.

As per the MSME ministry’s Udyam portal, India’s MSMEs have created about 290 million jobs to date.

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