Why supply chains will power India’s next wave of MSME exporters

As more Indian MSMEs look to expand overseas, logistics is becoming just as important as the product itself. While technology has made global supply chains more accessible, many small businesses still struggle with customs, fragmented logistics networks, and compliance.

At MSME Sparks 2026, held on June 26 at ITC Gardenia, Bengaluru, Dibyanshu Tripathi, CEO and Co-founder of Hexalog, joined Shivani Muthanna, Senior Director, Content Partnerships, YourStory, for a session titled ‘The Logistics Advantage: Scaling MSMEs Beyond Borders’. The discussion explored how technology and smarter supply chains can help MSMEs compete globally despite an increasingly uncertain trade environment.

India’s MSMEs contribute nearly 45% of the country’s exports, but many face structural challenges once they enter international markets. According to Tripathi, building a quality product is only part of the equation.

“Your first order is by virtue of your capability, your 50th order is by virtue of the supply chain.” 

He said long-term success depends on delivering consistently and without friction. “If you're an MSME who's got aspirations of exporting, your German customer does not care whether your factory has got an ISO certification. But if every third shipment is getting caught up in customs complexity, that's reliability taking a hit.”

Why logistics needs a rethink

Logistics has traditionally been treated as a back-end function. But as businesses increasingly sell across borders, it has become central to customer experience and repeat business.

Tripathi argued that the biggest challenge is no longer digitization. Freight companies, warehouses, and customs brokers have digitized many of their own operations, yet exporters are still left coordinating multiple stakeholders through WhatsApp groups, emails, and phone calls.

Instead of adding more digital tools, the industry needs systems that connect these different players, simplify compliance, and help businesses make better logistics decisions.

He illustrated this with the example of a small exporter in Moradabad, Uttar Pradesh, who ships products to 28 countries but lacks the trade expertise available to larger companies. The entrepreneur wasn't looking for warehouses or trucks. He needed help with HSN classifications, duties, export incentives, and shipping decisions.

Tripathi said this is the gap Hexalog is trying to fill by aggregating freight volumes across MSMEs, simplifying compliance, and giving smaller businesses access to enterprise-grade logistics capabilities without enterprise-scale costs.

Using data to improve reliability

Technology, Tripathi said, can also help businesses make better use of the operational data they already have.

Shipment records, invoices, customs documents and delivery timelines can reveal patterns that help exporters anticipate delays, optimize routes and improve planning.

“I always say this, that the most important factor for the business is reliability; reliability is the product.” He explained that reliability depends on addressing three gaps.

The first is information asymmetry, where buyers, suppliers, and logistics partners operate with different information. The second is access asymmetry, where smaller exporters pay higher logistics costs because they lack purchasing power. The third is confidence asymmetry, where many MSMEs see exporting as more complicated than it actually is.

Technology and shared logistics infrastructure can help bridge these gaps and make global trade more accessible, he said. 

Planning for uncertainty

Global supply chains have become far more unpredictable in recent years, with geopolitical tensions, changing trade policies, and shifting shipping routes adding new layers of complexity.

While businesses cannot control these developments, Tripathi said they can prepare for them. “We all love our first international order, but I think the myopia sets in when you actually plan for your international with a domestic margin mindset,” he said. 

He urged exporters to factor in duties, regulatory compliance, shipping risks and contingency planning before entering international markets.

Technology can also help businesses predict port congestion, compare alternate routes, estimate landed costs and optimise multimodal transport. Hexalog itself has experimented with alternative logistics corridors to improve delivery reliability for customers.

Advice for first-time exporters

Tripathi advised businesses to focus on one international market before expanding into several.

He suggested that markets with large Indian diaspora populations, including the US, the UAE and Canada, can be a practical starting point because of strong cultural familiarity and established trade links.

Before entering a new market, businesses should understand product classifications, estimate landed costs, calculate duties, and study local compliance requirements. Doing this groundwork early can reduce costly surprises later.

Drawing from Hexalog's own experience, Tripathi said expanding one trade lane at a time allows businesses to refine their processes, avoid repeated mistakes, and build confidence before entering new geographies.

India's MSMEs have already shown they can build world-class products. The next stage of growth, Tripathi said, will depend on whether they can deliver those products consistently across borders.

As logistics becomes increasingly technology-driven, reliable execution, not just manufacturing capability, will determine which businesses succeed globally.