Are Indian MSMEs ready for e-commerce?
live mint , Sep 22, 2017
Indian micro, small & medium enterprises (MSMEs) are digitising rapidly. By adopting technology, such firms connect with customers digitally, trading globally through the e-commerce platform. This has opened up opportunities for MSMEs to expand their market globally. A report by the Federation of Indian Chambers of Commerce and Industry and the Confederation of Micro, Small and Medium Enterprises (CMSME), ‘Exploring Potential of E-Commerce for Retail Exports of Indian MSMEs in Manufacturing Sector,’ explains the huge potential for Indian exports online.
As many as 60-70% of the workforce across various MSME clusters was found to have used computers; and among these, a majority said they had access to an internet connection, testifying to the feasibility of using e-commerce to widen their reach to foreign buyers.
Email was found to be the primary means of communication with the buyers for a majority of MSMEs across clusters. Thirty two percent of the respondents indicated that while they have a website, it is used only to exhibit their products without any actual sale transactions happening on the site.
As it turns out, around 1.4 billion people made online purchases in 2015 and this is likely to cross the 2 billion mark in 2019.