Following was reported on
Inc42.com ( 30 May 2017 ) :
Switching From Offlin And Policies To Empower It
Switching from
Offline to Online : The $ 26 Billion B2C e-commerce market in India and
Policies to Empower it
Where
Does The Opportunity Lie: Potential buyers, Bestselling Products, Marketing
Platforms, & Lucrative Markets
With ecommerce changing every facet of the world, the B2C ecommerce
market has not been left behind, as per the latest report released by the Indian Institute of Foreign
Trade (IIFT) and Federation of Indian Chambers of Commerce & Industry-Confederation of Micro,
Small, and Medium Enterprises (FICCI-CMSME), in association with eBay
India.
The B2C ecommerce
market in India is expected to store a potential
of $26 Bn.
The study also
estimates that $2 Bn in revenues can be achieved by 2020 if the
repository of B2C ecommerce is realised and explored.
As per the report, MSMEs
are responsible for 6% of
India’s GDP and employ almost 80 Mn people in
the country.
As per the report, the ecommerce
spend in India accounts for 2% of the total retail spending, as compared to
10%-13% in other developing countries.
With increasing Internet penetration, the on-going digital drive and
the push to Make in India, the report indicates that the time is indeed ripe to
capture the opportunity.
According to the
above-mentioned report, the B2C
ecommerce sales currently stands at $25.5 Bn, placing it at the 9th position, globally.
Of the products range, the
fastest selling Indian exports are gems, handlooms, leather, and auto
components.
My
following blog provides a better perspective :
Tuesday, 30 June 2015
Export Strategy ?
News reports are agonizing over the declining figures of exports
for the past 6 months - month after month
There is no doubt , among many corrective actions being
undertaken by the Central Government , promoting exports from MSME , is one
No need to look far, for a reason for this emphasis
Just look at how much MSME in our neighbouring countries are
exporting :
-----------------------------------------------------------
Country /
No of MSME / Ave
Export / year ( $ )
-----------------------------------------------------------
-----------------------------------------------------------
Singapore
/
9,296
/ 6.74 Million
-----------------------------------------------------------
Malaysia
/
28,840
/ 2.05 Million
-----------------------------------------------------------
S.Korea
/ 2.9 million
/ 45 , 000
-----------------------------------------------------------
India
/ 30 million / 4,
000
-----------------------------------------------------------
Now , even if each of our MSME succeeds in exporting just $ 40,000 worth of exports
per year , that would amount to ,
$ 40,000*30 million !
Currently each MSME ( on an average ) employs 2.5 persons
How many more persons would 30 million MSME need to employ , if each were to
raise exports by 10 times ? ( from $ 4000 to $ 40,000 )
It is reported that , even at the current level of operations , India's MSME sector creates 1.3
million jobs every year
For raising (ave) MSME exports by 10 times , would that figure
go up to 13 million new jobs /
year ?
Enough to absorb the 12 million persons joining our job market each year ?
It is time for re-thinking our Export Strategy
By emulating smaller
neighbours , we could solve two problems , at one time !
Given this abysmal state of exports from our 30 million MSME , - and
the VAST UNTAPPED POTENTIAL – it comes as a SAD NEWS that the GST Council has not agreed to
the Commerce Ministry’s suggestion of exempting exporters from the MSME sector from paying GST
, ( instead of blocking their capital by making them pay first and then giving
refunds )
If our ULTIMATE GOAL is JOB GENERATION , listen to what Shri Kalraj Mishra ( Minister – MSME ) said yesterday :
“ 11 LAKH jobs had been
created in three years under the Prime Minister’s Employment Guarantee
Programme ( PMEGP )
Khadi &
Village Industries institutions have provided employment to more than 11 LAKH persons , EACH YEAR , in the last 3
years “
---------------------------------------------------------------------------------
05 June
2017
www.hemenparekh.in / blogs
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