New Delhi, May 30, 2017: There potential for Business to consumer (B2C) e-commerce exports is estimated at approximately $26-billion, of which $3-billion can be achieved in the next three years from 16 product categories. According to a study on ‘Exploring Potential of E-Commerce for Retail Exports of Indian MSMEs in Manufacturing Sector’ prepared by FICCI, Indian Institute of Foreign Trade-Centre for MSME Studies and Apex Cluster Development Services, supported by eBay India, this huge potential of e-commerce will only be feasible through modifications in the current Merchandise Exports from India Scheme (MEIS) policy under Foreign Trade Policy.
Recognising the immense potential of retail e-commerce exports from India, the study report allows Indian MSMEs to explore prospects in B2C e-commerce retail export. The study brings forth limitations pertaining to ICT infrastructure; e-payment and logistics across MSME sectors. It also highlights reasons like bandwidth and network restrictions, lack of availability of skilled workforce, privacy and security concerns and inaccessibility to finance amongst other reasons that are collectively dissuading Indian MSMEs from adopting modern retail practices. The study highlights the need for the Government to recognise e-commerce retail exports as an industry and work towards removing regulatory barriers, including reviewing the FTP policy, simplifying customs duty procedures, etc.
While releasing the study SN Tripathi, Additional Secretary & Development Commissioner, Ministry of Micro, Small and Medium Enterprises, Government of India, today said that there was a need to reduce the distance between the producer and consumer and e-commerce could help in bridging this gap. Besides, it would also reduce the cost of products. He added that today Indian manufacturers were producing locally for global markets and the study revealed that manufacturers were taking advantage of technology to reach global markets. Alluding to various initiatives of the Government of India such as ‘Zero Defect Zero Effect’, Mr Tripathi said that the MSMEs should take advantage of schemes to improve the quality of their products and scale up their business.
He added that the government was working towards improving ease of doing business and addressing various challenges faced by MSMEs. Commenting on the report, Navin Mistry, Director Retail Exports, eBay India, said, “Since 2012, eBay India has always been proactively driving the agenda for Cross Border Trade in India. We are happy to have contributed to the study given our understanding of working with over 25,000 small and medium entrepreneurs who actively leverage our platform to sell across 200+ countries.
We are positive that together with FICCI and IIFT we will be able to initiate dialogues at policy level to ease norms for e-commerce retail exports and encourage larger MSME base to tap the potential of e-commerce.” The study emphasises on creating synergies with numerous export promotion programmes and schemes by the Government and their agencies, which will help in on-boarding large number of sellers and more exports per seller. The study also highlights policy recommendations towards integrating ‘Make in India’ and ‘Digital India’, which will enable access to new geographies and market diversification for the Indian MSMEs.
United News Of India