India’s MSME sector is stagnating, or worse, floundering. Bhanu Pratap Singh Verma, the Minister of State for MSME's, said that the share of MSMEs in India’s overall exports in FY23 stood at 43.6 percent, declining from 45.03 percent in FY22. In many cases, SMEs in India are globally unviable since they start at a very low level of output and tend to remain there over decades. Neither finance nor consistently competitive technology are available to a limited player, and obsolescence is the result. Incentives for global JVs need to be provided for the MSME sector to help with a key issue where Indian MSMEs flounder—digitization. A further fall in India’s MSME numbers would be completely detrimental to its economy on multiple fronts. India has a window of opportunity over the next 2-3 years to develop into a force in global value chains. The Indian states need to move quickly too to assess the competitive global clusters they can develop and provide incentives for their MSMEs.