Overview
The Small Industries Development Bank of India (SIDBI) used its MSME Samvaad platform to highlight how micro, small and medium enterprises (MSMEs) can accelerate growth by tapping both international export markets and the Government e‑Marketplace (GeM). The briefing underscored that merely having a competitive product is insufficient; robust processes, compliance, financial discipline, and reliable execution are essential for sustainable expansion.
Export Readiness
Exporting requires quality, consistency, proper documentation, compliance with regulations, and timely delivery to build trust with overseas buyers. Digital tools such as the Import‑Export Code (IEC), Goods and Services Tax (GST) registration, and platforms like ICEGATE and the Directorate General of Foreign Trade (DGFT) system streamline trade procedures. Free Trade Agreements (FTAs) can further open selected markets at reduced or zero customs duties, subject to applicable rules.
Alpine Group Example
The Faridabad‑based Alpine Group, which manufactures leather accessories, illustrated the export journey. The company’s experience confirmed that a competitive product can open international doors, but dependable systems and consistent execution are required to keep those doors open.
GeM – Institutional Procurement Platform
GeM offers MSMEs access to government and institutional buyers across India. More than 12 lakh small enterprises are registered on the platform, and public procurement is projected to exceed ₹5 lakh crore in FY 2025‑26. Micro and small enterprises account for 68% of orders, while approximately 45% of the procurement value is captured by MSMEs. Registration alone does not guarantee success; firms must identify appropriate categories, understand buyer specifications, maintain required documentation, and verify eligibility before bidding.
Financial Discipline in Bidding
When participating in GeM tenders, MSMEs must factor in production, overhead, logistics, and delivery costs to determine a sustainable lowest price. Competing solely on price can erode profitability. Sustainable growth stems from a clear understanding of cost structures and the value the MSME brings to the buyer.
Broader Growth Opportunity
The combined potential of global export demand and domestic institutional procurement presents a expanding growth horizon for MSMEs. Realising this potential demands strong systems, adherence to compliance, adoption of technology, disciplined financial planning, and reliable execution.
Further Resources
Full conversations from SIDBI MSME Samvaad are available in Episode 11 and Episode 12 on YouTube (links provided in the release).
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