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Tuesday, March 25, 2025

MSMEs Key to India’s $450B Services Export Goal

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India’s micro, small and medium enterprises (MSMEs) in the IT and services sector are poised to play a central role in achieving the country’s ambitious $450 billion services export target, according to Union Minister Piyush Goyal. Addressing industry leaders at Global Confluence 2025, Goyal highlighted the exponential rise in MSME participation across IT, tourism, accounting, and finance.

A Sector Driving Global Growth

Goyal noted that services exports stood at $340 billion last year, with IT and IT-enabled services (ITES) contributing nearly $200 billion. This year, the country is on track to reach $380–$385 billion, driven largely by digital services. He expressed confidence that the momentum, particularly among small and mid-sized firms, will push India toward its FY26 target.

“MSMEs are the engines of innovation, adaptability, and job creation,” he said. “Their contribution to IT and allied services strengthens our position in the global value chain.”

Creating a Virtuous Cycle of Growth

The Minister stressed the importance of retaining talent within India by encouraging companies to serve global clients from domestic hubs. This strategy, he said, not only enhances foreign exchange earnings but also stimulates demand for infrastructure, real estate, and housing, creating a virtuous cycle of growth.

He also urged MSMEs to focus on emerging technologies such as AI, machine learning, and quantum computing, and praised Nasscom’s efforts to promote reskilling and upskilling.

Support Through FTAs and Global Partnerships

Reiterating the government’s commitment to opening up global markets through Free Trade Agreements (FTAs) and strategic engagements, Goyal said the world is “eager for India’s arrival” and that MSMEs will be key to leveraging these opportunities.

Also read: Karnataka Funds 101 Startups Under ELEVATE 2024

A Call to Action for Indian MSMEs

As India moves through the Amrit Kaal toward Viksit Bharat, the Minister concluded with a strong message: MSMEs must embrace their role not just as contributors, but as leaders in shaping India’s economic future through services export.

With government backing, international demand, and rising digital capabilities, India’s MSMEs are now in a position to take the global stage.

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