Small Business, Big Impact: How India’s MSMEs are Driving the UN Global Compact’s Sustainability Mandate

An Invitation from UN Global Compact Network India

At the UN Global Compact Network India (UN GCNI), we often spotlight the sustainability efforts of large corporations. But there’s an equally powerful, often underappreciated force transforming India’s business landscape our Micro, Small, and Medium Enterprises (MSMEs).

With over 63 million MSMEs contributing nearly 30% of India’s GDP and employing more than 110 million people, these enterprises are the true engines of inclusive and sustainable growth. When MSMEs align with the UN Global Compact’s Ten Principles, they don’t just adopt responsible business they amplify impact across communities, supply chains and global markets.

The UN Global Compact (UNGC) is the world’s largest corporate sustainability initiative. By joining, businesses commit to integrating Ten Principles covering:

  • Human Rights
  • Labour Standards
  • Environmental Stewardship
  • Anti-Corruption

These principles are universal, not exclusive to big businesses. In fact, over 50% of UNGC’s 20,000+ participants globally are SMEs.By embedding these values into operations, MSMEs can scale ethical practices, enhance resilience, and actively contribute to the UN Sustainable Development Goals (SDGs).India’s MSMEs are not only economic contributors but also key actors in climate action and inclusive development

  • Account for 45% of India’s exports
  • Generate 3–4% of India’s industrial carbon emissions
  • Serve as critical suppliers to major Indian and global corporations

Their proximity to local communities, agility, and growing influence in value chains make them ideal changemakers. By becoming UNGC participants, MSMEs can amplify their role from reactive players to proactive sustainability leaders.

For Indian MSMEs, joining the UNGC opens up new opportunities, support mechanisms, and long-term strategic value:

  • Improve Operational Efficiency:

    Implementing sustainable practices (e.g., energy conservation, resource optimization, circularity) reduces costs and boosts competitiveness.

  • Build Trust and Market Reputation:

    Customers and partners increasingly demand transparency and ethical conduct. UNGC participation enhances brand credibility and stakeholder confidence.

  • Access New Markets and Global Supply Chains:

    Many multinational buyers are prioritizing suppliers with strong ESG performance. UNGC-aligned MSMEs are better positioned to win such contracts.

  • Tap into Green Finance and Incentives:

    Sustainability-aligned MSMEs gain preferential access to green loans, government schemes, and private financing (e.g., via SIDBI etc.).

  • Retain and Motivate Talent:

    Fair labour practices, inclusion, and workplace well-being help attract and retain skilled talent—a key asset for growth.

  • Future-Proof the Business:

    Sustainability practices help MSMEs stay ahead of emerging regulations, climate risks, and market disruptions.

To ease your journey, the UN Global Compact has developed SPARK, a global community and learning space for SMEs looking to take action:

🔗 Explore SPARK – UNGC’s SME Sustainability Hub

Additionally, our UNGC Academy provides free online courses, tools and peer learning tailored to small businesses navigating the path of corporate responsibility.

If you’re an Indian MSME ready to lead with purpose, now is the time to align your business with the Ten Principles of the UN Global Compact. Participation is simple and transformational.

📝 Apply to Join the UN Global Compact

By joining, you not only strengthen your own business but contribute to India’s broader sustainable development agenda from achieving Net-Zero by 2070 to ensuring inclusive economic growth for all.

Your business may be small but your impact can be global.

Let’s grow responsibly.
Let’s build a better tomorrow.
Join the UN Global Compact today.