The present study uncovers the critical regional factors essentially responsible for inter-state small and medium enterprises (SMEs) export differences. In this context, this study is useful from the perspective of regional/local policy implications, as it is focused on critical regional determinants of SMEs’ export. Based on a wide range of interconnected theories, this study designs an analytical framework comprising a set of regional factors, which are proposed to have a significant impact on export capabilities of local SMEs. The empirical results indeed confirm the relation significantly. States with larger and productive SMEs are more successful in export activities. Likewise, Indian states may enhance their SMEs’ export by focusing on regional factors such as market, skill and power generation capacity.
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