Changing trends and rapidly developing technology have passed the scepter of economic progress to e-commerce. Countries have now understood that they have to adjust and cope up with this wave to stay atop the economic growth chart. Many nations have constituted major policies and have adopted e-commerce. However, in India, e-commerce is considered as a speculative matter and has been going through a lot of transformation with imposed regulations.
India has been taking cautious steps in making e-commerce a part of its economy. The government has taken the necessary measures to make e-commerce secure and fair for both vendors and buyers. The Indian government, recently, appointed a new head for the ‘Ministry of Small, Micro, and Medium Enterprises (MSMEs)’. Preceding the former minister, the Ministry of MSME will now be headed by the Minister of Road Transport and Highways, Mr. NitinGadkari and upon his appointment, he expressed his plans and missions that he aims to accomplish in the coming years.
The appointment of Mr. Gadkari can be very beneficial for businesses and budding enterprises. Among the many plans cited by Mr. Gadkari, the most notable one was the convergence of MSMEs and e-commerce. There are more than 36 million MSMEs in India and only a fraction of them are available on e-commerce. The merger of e-commerce and MSME will unleash a plethora of benefits and services that boost the progress of the country and the MSMEs.
MSMEs that manufacture unique and commercial products will get a chance to reach out to global audiences. The onboarding of MSMEs on e-commerce in large numbers also has the potential of increasing the export of goods to different countries promoting global trade. To sum it all, the merger of e-commerce and MSMEs can open great opportunities for exponential growth in the coming years.
Here are some other plans of Mr. Gadkari for the MSME sector:
1. Increasing the contribution of GDP: The contribution of MSMEs to the GDP of the country has been up to 29 percent in the past few years. It has generated more than 11.1 crore jobs in the country. However, the government is planning to increase these numbers, the MSME’s GDP contribution is expected to rise from 29 percent to 50 percent and employment from 11.1 crores to at least 15 crores.
2. Increase the production of import-substitute products: Numerous Indian MSMEs manufacture products that could replace the imported ones in the market. The government is also focusing on encouraging such MSMEs to increase their production scale and help them cater to a larger audience. The MSME ministry will work in collaboration with the Ministry of Commerce and Industry to identify the goods that can replace the imported ones.
3. No barrier on the entry of corporates: To fuel the demand of the MSMEs, the government has lifted the ban on the entry of corporate companies in the MSMEs. The Ministry has also urged various companies to join hands and also announced the establishment of enterprising centers for the growth of MSMEs.
4. MSME employment scheme for SC/ST groups: The government is also planning to increase employment for SC/ST classes through MSMEs. They are planning to utilize the credit limits from the World Bank and Asian Development Bank to provide loans to the SMEs, who would provide employment opportunities to the poor.
The plans put forth by Mr. NitinGadkari are surely commendable and will usher the MSMEs into a new era of progress and prosperity. It is indeed a great way to achieve a great goal of the country’s progress by pressing on such minute matters. If you are looking forward to enter or boost your business in e-commerce, you can contact us via WhatsApp or click here.
