Exports from India's micro, small, and medium enterprise sector rose 28 per cent year-on-year in the first quarter of FY27, driven by surging orders in textiles, processed chemicals, pharmaceutical intermediates, and engineering components as global retailers and manufacturers accelerate their diversification away from China.

The Ministry of Commerce data shows that MSME export value reached ₹4.8 lakh crore in the quarter — the highest ever — with the US and European Union together accounting for 58 per cent of orders.

Textiles and apparel from Surat, Tirupur, and Bhiwandi have been the largest beneficiary: Bangladesh's rising labour costs and geopolitical uncertainty around Myanmar have prompted buyers to rediscover India as a reliable garment sourcing destination, with order volumes from US retailers up 42 per cent.

The government's MSME credit guarantee schemes have played a role, enabling smaller enterprises to finance the working capital needed to fulfil large international purchase orders. However, logistics costs and port throughput constraints remain structural challenges that limit the scale of India's export ambitions.