Chennai: Former Economic Advisor to Prime Minister S Narayan on Saturday said inadequate infrastructure for Micro, Small and Medium Enterprises made it difficult for them to identify potential overseas markets to take advantage of various opportunities.

"MSMEs are unable to identify potential markets to take advantage of the market scenario besides facing stiff competition from large firms," he said while speaking at a seminar on 'Role of Banks in Funding MSMEs' organised by Hindustan Chamber of Commerce here.

Many MSMEs lack modern technologies to upgrade their organisations and hence they are unable to procure adequate financial resources from banks and other financial institutions, he added.

The MSME sector contributes about 40 per cent to the GDP with an estimated goods and services valued at Rs 20 lakh crore, employing six crore workers in 2.6 crore units, he informed.

He further said the sector constitutes 40 per cent of all exports from the country.

Export Credit Guarantee Corporation Assistant General Manager R Sathyanarayanan said several MSMEs in Vellore, Chengalpet, Madurai, Tuticorin are not focusing on exports and felt "local trading" was better than exports.

However, units in Coimbatore, Cuddalore districts were showing signs of improving exports to markets like Singapore, Malaysia and other countries, he added.