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Chapter 10 — Economy
Economy

MSMEs in the ESG-Tariffs Era: Backbone of Sustainable Trade

63 million MSMEs contributing 45% of exports must adapt to green requirements or face exclusion from global markets.

SM
Mr. Sharad Mathur
Director, MSME, World Development Council
February 2026 · 11 min

MSMEs account for 45% of India's exports and employ 110 million people.

MSMEs represent 90% of all businesses globally, contribute half of GDP, and provide 70% of employment.

CBAM Impact

Expected to affect 25,000-30,000 steel-producing MSMEs. Levies of €240-300/tonne without emissions data. Costs increase 5-8%.

Green Dividends

Compliant MSMEs benefit from zero EU tariffs, premium pricing, and improved credit. Solar cuts costs 20-30%.

MSMEsESGGreen TransitionCBAM

Discussion

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Bala Prasad Peddigari Mar 18, 2026
The BRSR Lite to NPMA framework is exactly what MSMEs need practically.
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