India-South Africa MSME cooperation: Key areas discussed in New Delhi
Synopsis
Key Takeaways
India and South Africa on 2 June explored avenues to deepen cooperation in the MSME sector at a bilateral meeting held in New Delhi, with both sides acknowledging the sector's pivotal role in driving economic growth, employment generation, and inclusive development. The meeting was hosted at the Ministry of Micro, Small and Medium Enterprises (MSME).
Key Developments
The bilateral dialogue was led on the Indian side by MSME Minister Jitan Ram Manjhi, while South Africa was represented by a delegation headed by Minister of Small Business Development Stella Tembisa Ndabeni. According to an official statement, discussions spanned several potential areas of collaboration, including enhancing access to finance, promoting enterprise formalisation, accelerating digitalisation, and strengthening entrepreneurship and skilling within MSME development frameworks.
What Both Sides Agreed On
The meeting reflected a shared commitment to deepening bilateral engagement and fostering a supportive ecosystem for the growth and competitiveness of MSMEs in both nations, according to the official statement. Both ministers underscored the need for enabling policies that allow small businesses to scale, formalise, and integrate into broader value chains.
The BRICS Dimension
Separately, the Ministry of MSME also convened the second 'SME Working Group Meeting' under the BRICS Partnership on the New Industrial Revolution (PartNIR) in New Delhi. The meeting drew active participation from BRICS member countries and served as a platform to share experiences and best practices on MSME development. Deliberations highlighted the need for a multi-pronged approach to bridge the technology divide — through greater digital inclusion, stronger innovation capabilities, and improved technology readiness — to support MSME integration into regional and global value chains. The meeting also reiterated the importance of deeper collaboration among BRICS economies in technology access, innovation ecosystems, and skills development.
Why It Matters
MSMEs form the backbone of both the Indian and South African economies, contributing significantly to employment and output. India's MSME sector alone accounts for a substantial share of the country's exports and workforce. This bilateral engagement, set against the backdrop of the BRICS PartNIR framework, signals a structured effort to move beyond dialogue toward actionable policy exchange. Notably, both countries face similar developmental challenges — including informality, limited access to credit, and lagging technology adoption — making this partnership particularly relevant. The deliberations are expected to inform future bilateral agreements and joint programmes targeting MSME competitiveness.
What Comes Next
The policy exchanges from both the bilateral meeting and the BRICS SME Working Group are expected to feed into a broader roadmap for MSME collaboration. Industry observers will watch for formal agreements or memoranda of understanding that translate these discussions into on-ground programmes for small business development in both countries.