Sunday, 4 June 2017

That is Peanuts compared to the Potential !



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



No comments:

Post a Comment