The global push for economic self-reliance is reshaping the landscape of international trade, production, and investment. As one of the world’s fastest-growing major economies, India is undergoing a profound transformation across various sectors, driven by a mix of growth, emerging opportunities, global trends, and structural challenges. The growing emphasis on strengthening local economies while fostering regional collaboration, in the face of the current geopolitical scenario, is a huge opportunity for India’s MSMEs to move up the value chain while tapping new geographies. MSMEs have been the bulwark of the Indian economy for many decades now, and the storm in the global economic scenario might just be the perfect platform for them. Consulting firm Redseer observed in its report on the sector that Indian MSME growth is being catalyzed by two ongoing watershed movements– the first being the transition of the nation into a paperless economy and the second being the increased formalization of the informal economy. Additionally, factors such as supply chain diversification, new trade agreements, focus on sustainability, digital transformation, and growing government support to access funds and technology all contribute to creating a favorable environment for MSMEs. Their share in the country’s Gross Value Added (GVA) has increased from 27.3% in 2020-21 to 30.1% in 2022-23, highlighting their growing role in national economic output as well as the sector’s adaptability. The Role of Large Private Players Private companies, especially in the e-commerce and tech space, have played a significant role in the growth of MSMEs, providing them access to new markets, resources, and financial support. This is helping these small businesses overcome challenges and scale in ways that were once far-fetched. Flipkart, for instance, has played a transformative role in empowering over 1.4 million sellers, many of whom are first-time digital entrepreneurs. Through programs like Flipkart Samarth, the platform has directly supported artisans, weavers, SHGs, and rural entrepreneurs by providing access to online markets, training in cataloging and digital marketing, and access to consumer insights. Sellers from tier-2 and tier-3 cities have been able to participate meaningfully in the digital economy, leveraging Flipkart’s reach and technology. In categories such as handicrafts, toys, textiles, and food products, Flipkart has enabled MSMEs to scale by giving them digital storefronts, seamless logistics integration, and tools for online payments. In many cases, sellers have grown from small home-run units to registered MSMEs with expanded capacities and formal employment. The data-driven capabilities of ecommerce platforms also offer MSMEs the ability to understand customer behavior, improve product-market fit, and build brand loyalty. Flipkart’s seller dashboard, for example, equips entrepreneurs with analytics tools that help guide their decisions with strategic insight. Flipkart’s robust tech-led supply chain infrastructure, including automated fulfillment centers, last-mile delivery hubs, and state-of-the-art fulfillment facilities, has enabled faster, reliable deliveries and expanded market access for sellers across India. Through these initiatives, the company has contributed to meaningful employment opportunities, enabling lakhs of direct and indirect jobs across its seller ecosystem, supply chain, and partner networks PAN-India. The proliferation of e-commerce has helped MSMEs expand their presence, particularly in areas such as handicrafts, leather, apparel, food, and toys, by extending their market reach, equipping them with digital infrastructure such as storefronts and online payment mechanisms, and additionally, supporting them with targeted training programs. Further, e-commerce platforms have consistently offered MSMEs powerful tools for data analytics that can help them understand consumer behavior, identify trends, and optimize operations. This data-driven approach allows small businesses to make informed decisions about product offerings, marketing strategies, and customer engagement. The government’s deft handling of the global landscape has also positioned India as a conducive state to anyone willing to engage in business on mutually beneficial and harmonious terms. PwC India has projected that at an 18% annual growth rate, India’s merchandise exports may touch the coveted $1-trillion mark by FY29, if the country is able to take actions along a strategic pathway in the coming years. The key to making this happen would be value addition and product diversification, as clearly evident in the success of the Production-Linked Incentive (PLIs) schemes that have had a game-changing impact. This applies to several sectors – pharmaceuticals, chemicals, footwear, electronics, leather, toys, textiles, agri and aquaculture, auto ancillaries and many more. Government push to MSMEs In her Union Budget 2025-26, Hon’ble Finance Minister Nirmala Sitharaman unambiguously batted for the growth of MSMEs, rating the sector as one of the four pillars in the country’s “journey of development,” the others being agriculture, investment, and exports. Rightly so. After all, 5.93 crore registered MSMEs employing more than 25 crore people accounted for nearly 46% of India’s total exports in 2024-25, underlining the critical role these enterprises play in earning valuable foreign exchange for the country. The number of exporting MSMEs has also surged, more than trebling to 1,73,350 in 2024-25 from 52,849 in 2020-21. From time to time, the government has responded with policy measures to support the growth of MSMEs. A consistent thinking behind the initiatives has been to help them overcome the limitation of a small size so that they can compete better and grow their revenue and profitability. One such has been the mandatory 25% annual procurement by central ministries and government companies and departments from MSEs. The government’s direction to large companies to clear their dues to MSMEs within 45 days has also led to improved cash flows and helped them focus on growth. This couldn’t be better timed, given the geopolitical uncertainties as strong balance sheets incentivize higher risk-taking. Further, the government has reaffirmed its commitment to support the industry through the Export Promotion Mission, trade documentation and finance facilitation mechanism of Bharat Trade Net and domestic manufacturing support. The recent efforts by the government to strike free-trade agreements with some of its largest trading partners, namely the US, the European Union, and the UK, also bode well for the country’s MSMEs. This will further expand their customer base, help diversify market access, and increase revenue opportunities, creating a favorable ecosystem for MSMEs to thrive. These businesses have done well in leveraging some of the recent opportunities that have come their way. This includes their gains in textiles, as many large foreign retailers look to de-risk and secure their supply chains. Flipkart, through initiatives like Flipkart Leap Ahead, is also investing directly in early-stage startups building innovative, scalable solutions in logistics, sustainability, and AI some of which could become enablers for the next wave of MSME empowerment. Additionally, the company has actively collaborated with governments across 28 states for initiatives focused on digital commerce adoption, MSME enablement, and skilling, which include the National Rural Livelihood Mission (NRLM), One District One Product (ODOP) program, Society for Empowerment of Rural Poverty (SERP) and more. Flipkart’s participation in capacity-building workshops and MoUs with industry departments has played a pivotal role in fostering inclusive economic growth and digitization of local businesses. They now need to fully adopt digital solutions across their value chain, scale capacities, hire right, and focus on quality. With most of the ingredients in place for growth and a long runway ahead, MSMEs will have to be more ambitious. The platform for them couldn’t be more appropriate as a new world order takes shape and the government and larger corporations step out in full gusto with an enabling environment. [This is a guest post by Rajneesh Kumar, Chief Corporate Affairs Officer at Flipkart Group. Previously, he was the SVP & Chief Corporate Affairs Officer and Director of Walmart India. Rajneesh has more than two decades of experience in people & organisation leadership, strategic planning & execution.]