ET MSME Awards 2025: Global trade reset opens new supply chain playbooks for MSMEs

As global trade undergoes structural shifts driven by geopolitics, supply chain realignments, and evolving market access dynamics, India’s micro, small, and medium enterprises (MSMEs) are being pushed to rethink how they engage with international markets.

At a panel discussion on ‘Strategic Trade in a Shifting World: How MSMEs Can Diversify and Drive Global Growth’ at The Economic Times MSME Awards 2025, held in New Delhi on March 24, 2026, policymakers and international trade leaders converged on a clear message: diversification, competitiveness, and deeper global integration will define the next phase of MSME growth.

Setting the context, Jae Kyeong Lee, Managing Director, Korea SMEs and Startups Agency (KOSME), pointed to the structural changes underway in global trade.


“Global trade is becoming increasingly fragmented, and MSMEs can no longer rely on a limited set of export markets; they need to actively diversify across geographies and build resilience into their business models,” Lee said.

He added that this shift is not merely a response to risk, but a strategic opportunity.

“Diversification is not only about mitigating uncertainty; it is also about capturing new demand across emerging markets and integrating more deeply into global value chains,” he said.

Capturing new markets and building resilience

Echoing this, Mathias Emil Bengtsson, First Secretary, Trade Policy and Economic Affairs, Embassy of Denmark in India, underscored the importance of spreading risk across markets.

“In an environment where geopolitical and economic conditions are constantly evolving, diversification becomes essential not just for growth, but for stability and long-term resilience,” Bengtsson said.

Building on Lee’s point, he emphasised that MSMEs must move beyond opportunistic exporting.

“It is important for enterprises to think in terms of structured, multi-market strategies rather than depending on a few traditional trade corridors,” he said.

Supply chain shifts open new doors

As global companies reconfigure sourcing strategies, panellists pointed to emerging opportunities for Indian enterprises to integrate into international value chains.

The message was that this might be the right time for businesses to actively diversify their sourcing bases and position themselves as reliable and competitive partners in these networks.

Mukund Narayanamurti, Minister (Commercial), General Manager and Head of Austrade, South Asia, highlighted Australia’s surging trade ties as a case study.

“India’s goods trade with the world has grown by about 40% in the last five years, but its goods trade with Australia has grown by nearly 200%, five times faster than the rest of the world, which shows the scale of opportunity that MSMEs can tap into,” Narayanamurti noted, pointing to rising Indian exports in areas such as professional services, ICT, pharmaceuticals, and jewellery, not just from large firms but medium-sized players, too.

“We have increased awareness about opportunities in India & Australia. But we are coming off a very strong foundation, which is often not understood, as unlike consumer goods with visible brands, a lot of Australia’s exports, like resources, is less visible in daily life but is powering India’s infrastructure growth," Narayanamurti added.


India’s positioning in a shifting trade order

Building on this, Dr Neeraj Kharwal, IAS, Managing Director, India Trade Promotion Organisation (ITPO), pointed to India’s growing relevance in global trade flows..

“India is increasingly being seen as a credible manufacturing and trade partner, and MSMEs are central to strengthening this positioning, particularly as supply chains diversify and new trade corridors emerge,” Kharwal said.

Echoing Narayanamurti’s point on opportunity, he emphasised the need for readiness.

“The opportunity is significant, but MSMEs must be prepared to meet global expectations in terms of quality, consistency, and compliance,” he said.

Competitiveness becomes the differentiator

While market access is expanding, speakers cautioned that sustained success will depend on strengthening enterprise-level capabilities.

“Access to markets alone is not sufficient; MSMEs must consistently meet global standards in quality, compliance, and reliability if they want to remain competitive,” Bengtsson said.

Lee reinforced this, pointing to the importance of long-term capability building.

“Competitiveness is built over time through continuous investment in technology, innovation, and process improvements, and this is where MSMEs need sustained support,” Lee said.

Institutions as enablers of global access

Institutional support emerged as a critical factor in enabling MSMEs to navigate complex global markets.

“Platforms such as international trade fairs and exhibitions play a crucial role in connecting Indian MSMEs with global buyers, helping them showcase capabilities and build long-term partnerships,” Kharwal said.

Narayanamurti echoed this, highlighting the role of trade facilitation.

“Trade agencies can support MSMEs in understanding regulatory environments, identifying market opportunities, and building the right partnerships as they expand into new geographies,” he said.

Even with free trade agreements in place, non-tariff barriers are common across markets, and MSMEs need strong “on-ground support” and “relationships” to navigate regulatory complexity, Narayanamurti elaborated.

From exporters to global participants

A recurring theme across the discussion was the need to move beyond transactional exports towards sustained global engagement.

“MSMEs need to think of themselves not just as exporters, but as long-term participants in global value chains, where relationships, reliability, and consistency matter as much as cost,” Lee said.

Bengtsson reinforced this, pointing to the importance of collaboration.

“Partnerships across governments, institutions, and enterprises will be critical in enabling MSMEs to scale internationally and sustain their presence in global markets,” he said.

A strategic inflection point

As the discussion concluded, the panel converged on a shared view that MSMEs that adapt early to shifting trade dynamics, diversify their markets, and invest in competitiveness will be best positioned to drive the next phase of global growth.

For India, this presents a strategic inflection point. With policy support strengthening, trade linkages expanding, and global supply chains in flux, MSMEs have a clear pathway to deepen their global footprint.

Narayanamurti emphasised that the work does not end at market access; MSMEs require sustained support before, during, and after entering new markets to translate connections into actual commercial outcomes.

The ET MSME Awards has IDBI Bank as the Banking and Lending Partner, The New India Assurance Co. Ltd. as the General (Non-Life) Insurance Partner, and CareEdge Ratings as the Evaluation Partner.

For more information, visit etmsmeawards.com.