MSMEs getting greater attention in free trade agreements: Govt official

New Delhi: The Micro, Small and Medium Enterprises (MSMEs) are getting greater importance in the upcoming Free Trade Agreements (FTAs) as these pacts provide huge opportunities for them to participate in global trade, a senior government official said on Thursday.

Additional Secretary in the department of commerce Rajesh Agarwal said FTAs can enable better integration of MSMEs with global value chains. However, there are a few key challenges that need to be focussed on for the sector, including information asymmetry, access to affordable finance, reduction in regulatory burden, access to new markets, and capacity building through skill development programmes.

The FTAs bring advantages to MSMEs through rationalisation of customs duties and that enables them to become a part of Global Value Chains (GVCs).