MSMEs : Powering India’s Next Wave of Service Sector Exports

India’s services sector is the backbone of its economy, contributing nearly 55% to GDP and driving much of the country’s export earnings. Yet, while IT and IT-enabled services have made India a global brand, the next wave of growth lies in expanding service exports beyond the big players. Here, India’s Micro, Small, and Medium Enterprises (MSMEs) hold immense but largely untapped potential to become global champions.

Globally, services account for over one-fourth of total trade, with areas like consulting, education, healthcare, logistics, digital marketing, and creative industries expanding rapidly. Indian MSMEs have a unique edge like cost-effectiveness, flexibility, and specialized skills. Their smaller size allows for personalized service, faster adaptability, and quicker turnaround times. From niche IT firms offering app development and cybersecurity to overseas clients, to professional consultants in law and accounting delivering expertise online, MSMEs can access global markets with far fewer barriers than in the past. Similarly, creative service providers in design, content, and digital marketing, as well as healthcare and education ventures in telemedicine and e-learning, are already well-positioned to grow internationally. Tourism, wellness, and cultural services too have strong potential to showcase India’s strengths to the world.

However, stepping into global markets does not come without challenges. Many MSMEs struggle to secure affordable export credit, which is essential for fulfilling large orders. Regulatory complexity, particularly in foreign exchange compliance, customs, and certification can overwhelm smaller firms. Limited awareness of international markets and difficulties in connecting with genuine buyers further restrict their opportunities. Technology adoption is another barrier, as many MSMEs still lack the digital tools, skills, and cybersecurity standards needed for seamless global delivery.

Government Support - Your Export Launchpad

The Government of India has rolled out multiple initiatives to empower MSMEs to go global:  

• Udyam Registration (mandatory for MSMEs to access schemes) - https://udyamregistration.gov.in
• Ministry of MSME Portal (policies, updates, schemes) - https://msme.gov.in
• My MSME Portal (schemes like Samadhaan, Sambandh) - https://my.msme.gov.in/MyMsme/Reg/Home.aspx
• JanSamarth Portal (credit-linked government schemes) - https://www.jansamarth.in/home
• Credit Guarantee Fund (CGTMSE) for collateral-free export finance - https://www.cgtmse.in/
• CHAMPIONS Portal for grievance redressal and handholding - https://champions.gov.in/

The Government of India has also introduced schemes to help MSMEs build global competitiveness and credibility. The International Cooperation (IC) Scheme provides financial assistance for participation in international trade fairs and exhibitions, while the Zero Defect, Zero Effect (ZED) certification and support for Intellectual Property Rights (IPR) enhance their reputation for quality and innovation. Alongside this, the government’s strong push for e-commerce exports is making it easier for even the smallest firms to reach international clients and receive payments seamlessly.

To make the most of these opportunities, MSMEs need to adopt a global mindset from the start. Building services that meet international standards, investing in branding and digital presence, and leveraging global platforms such as Fiverr, Upwork, and B2B directories are essential steps. Forming clusters and collaborations can help smaller firms compete for larger contracts, while keeping track of evolving government policies and trade agreements ensures they do not miss out on emerging opportunities.

For Indian MSMEs, exporting services is not just an option but a necessity in today’s competitive environment. Expanding into global markets allows them to diversify revenues, reduce dependence on local demand, and build resilience. With their agility, innovation, and resilience, MSMEs are well-positioned to redefine India’s role in the global services economy.

The world is waiting. It is time for Indian MSMEs to move beyond local success stories and embrace their potential as global service partners.