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Home Manufacturing

Why the Collaboration of MSMEs and Large Enterprises is Crucial for MSME Export Growth

by Entrepreneur Team
April 25, 2025
in Manufacturing
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In the current times of uncertainty and disruption for global trade, collaboration has become an effective survival option. The synergy of MSME-large enterprises is fast emerging as one of the most enterprising major pillars of resilience and growth for the Indian engineering export ecosystem. The recently concluded 54th EEPC India National Awards, held in March 2025, were a salute to the great exporters of India, where many large winning companies recognized their MSME partners’ contributions to their success. This article attempts to discuss several real-time case studies, trade statistics, and the future of India’s exporting engine through the partnership of large and small enterprises, integration, and innovation.

Context: India’s Export Outlook in 2025

Despite external pressures—including the new U.S. Section 232 tariffs on steel and aluminum-—India’s engineering exports grew 7% YoY in January 2025, outpacing the 2% decline in overall merchandise exports.

Top Export Growth Sectors (April 2024–Jan 2025):

  • Aircraft & Spacecraft Parts: +17.8%
  • Auto Components: +15.3%
  • Electric Machinery: +12.1%
  • Medical Instruments: +8.2%

 Source: EEPC India, March 2025

These achievements have been possible due to large enterprises’ collaboration with MSMEs in global value chains, often led by large anchor enterprises.

💡 Read about industrial project opportunities on our blog:
🔗 https://www.entrepreneurindia.co/blogs

Case Study 1: JSW Steel MSME-Driven Excellence

Award: Large Enterprise—Gold Trophy
Category: Top Exporter (2021–22)

JSW Steel’s impressive export performance wouldn’t have been possible without its vast network of MSME suppliers, which

  • Manufactured precision tools and fabricated components
  • Supported plant-level maintenance and R&D needs
  • Ensured flexibility and on-time delivery for export orders

 Lesson: Large players must nurture local MSMEs as strategic allies, not just vendors.

Case Study 2: Calcutta Export Company—MSME Champion

Award: Small Enterprise—Gold Trophy

Calcutta Export Company, though small in scale, adopted big strategies—lean manufacturing, digital ERP systems, and export documentation precision. Its collaborative ties with logistics majors and raw material suppliers helped them scale operations during peak seasons.

 Lesson: MSMEs need structured collaboration with supply chain leaders for global consistency.

Planning to start a product-based export business? Start here:
https://www.niir.org/

Strategic Need: MSME + Large Enterprise = Export Growth Engine

Collaboration BenefitsFor MSMEsFor Large Enterprises
Technology SharingAccess to R&D, digital toolsFaster prototyping
Export ReadinessTraining in global complianceReduced cost of quality
Volume HandlingConsistent demand flowHigher scalability
Financial SupportVendor financing accessWorking capital efficiency
Global ReachMarket access via large firmsReduced lead time to export

Source: EEPC, India

Policy Shift: MSME Integration in Trade Agreements

With India negotiating new FTAs with the EU, UK, and GCC, the role of MSMEs as part of larger supply ecosystems has become central. These MSMEs:

  • Supply critical components for auto, electrical, and medical exports
  • Participate in trade delegations with their anchor clients
  • Tap into emerging markets like Africa and Latin America

🌐 Learn more about the business reports we offer at:
🔗 https://www.entrepreneurindia.co/

Spotlight: Steel & Aluminium Export Challenges Post-Tariff

New U.S. tariff changes (as of 18 Feb 2025) now cover derivative products of steel and aluminum. India’s share in these categories remains significant.

India’s Share in the U.S. Import Basket (Avg 2019–2023):

Product CategoryIndia’s Share (%)
Aluminium Long Products5.6%
Fabricated Steel Structures5.3%
Steel Pipes, Tubes, & Fittings12.3%
Office Equipment & Fasteners6.8%

These tariffs increase cost pressure. Large firms must now ensure that MSME suppliers receive tech and cost support to remain competitive.

Want to manufacture parts like fasteners or aluminum rods?
Explore our detailed business ideas at:
🔗 https://npcsblog.com/

How NPCS Helps Build Export-Ready Businesses

At Niir Project Consultancy Services (NPCS), we assist entrepreneurs and startups in translating their ideas into successful export-focused ventures.

We specialize in market surveys cum detailed techno-economic feasibility reports (DPRs), which include:

  • Manufacturing process and flow chart diagrams
  • Market size and future demand analysis
  • Machinery and raw material details
  • Financial projections with ROI estimates
  • SWOT and competitive benchmarking

 Want visual guides on business setup and industrial sectors?
Subscribe to our YouTube channel:
👉 https://www.youtube.com/@NIIRproject

 Related Reads from Our Blog

  1. Best 25 Low-Investment Businesses in West Bengal for 2025 – Niir Project Consultancy Services
  2. https://www.niir.org/blog/rising-young-business-leaders-in-uttar-pradesh-shaping-manufacturing/
  3. https://www.niir.org/blog/everything-about-ringers-lactate-manufacturing-business/
  4. https://www.niir.org/blog/how-to-start-an-acrylic-polymers-manufacturing-business/

📌 For more business insights, visit:
🔗 https://www.niir.org/blog/

Driving MSME Export Growth Through Strategic Collaborations

As India is fast advancing in its path toward the global leadership status in manufacturing and exports, the synergistic role between the MSME and the big enterprises has never been more important. Such partnerships would ensure sustainable MSME export growth and measures in integrating them into global supply chains, which will be backed by policies and structured planning, such as Techno-Economic Feasibility Reports.

If an entrepreneur is setting up an export-oriented unit or planning for export opportunities in fast-tracked sectors like fasteners or aluminum, NPCS can provide expert and indispensable advice covering practically every aspect, from project conception to commissioning and commercialization. 🌐 Visit us now:
✅ https://www.niir.org/
✅ https://npcsblog.com/
✅ https://www.entrepreneurindia.co/

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