A comprehensive study titled “Exploring Potential of e-Commerce for RETAIL Exports of Indian MSMEs in Manufacturing Sector” by FICCI-CMSME, IIFT and Apex Cluster Development Services revealed that Indian MSMEs, both for existing as well as potential start up export units, to capture a portion of the rapidly expanding B2C e-commerce via marketplace giants such as eBay, Amazon and Alibaba. The overall export potential arising out of MSME products like apparel, leather, handicraft, gems and jewellery amounts to more than USD 300 billion, contributed by some 100 product categories and is exported to approximately 160 countries. There are numerous clusters in India that hold promising potential for MSME products that can be exported to various countries in North America (USA), Europe (UK, Germany, Italy and France), Australia and South East Asian countries (Thailand, Singapore, Philippines and Malaysia). The Study also pointed out that India is not yet grasping full evident advantages of the at-hand e-commerce opportunities. Considering the rapid rise in the number of internet users, culminating in increased buying and selling of goods and services from Business to Consumers (B2C), the online international trade is flourishing. This is something that MSMEs can benefit from directly.
However, there is a dire need to resolve issues pertain to infrastructure conducive for retail export, e-payment and logistics facilities. Other problems include inadequate supply capacity to cater to the export orders, supply not of international quality standards, product unsuitability to international markets and poor Information and Communication Technology (ICT).
Significantly, the Federation of Indian Export Organisations (FIEO) and leading e-Com platform eBay on February 27, 2019 formally announced a partnership to promote retail exports via online channel from India. According to FIEO sources, this strategic tie-up will stimulate the growth of Indian retail exporters by helping them sell online to eBay’s 179 million buyers worldwide and share knowledge of retail export trends. eBay’s insights and best practices will be shared among FIEO’s member base so that they can benefit from the high-growth eCommerce market as well as gain from FIEO’s knowledge of export policies, incentives & benefits available to exporters under the foreign trade promotion policies to scale their businesses.
Speaking on this occasion Dr Ajay Sahai, Director General & CEO, FIEO advised the exporters to take to aggressive marketing strategies and identify and adopt additional export sales channels like ecommerce to take on the growing difficult global market conditions and leveraging risks through diversification. FIEO’s continuous efforts resulted in enhanced limits for retail E-Commerce exports from INR 25000 to INR 500,000 and waiver of fee for MEIS application which are helping MSMEs to scale their business globally. “We have been focusing on diversification of product baskets and markets. We now need to identify and adopt additional export sales channel like eCommerce to reach out to the customer directly thereby reducing the cost of products to the end users,” Mr Sahai said. Also present at this MoU signing event was Mr. Vidmay Naini, India Country Manager, eBay.
In Pic: Caption for the attached Photo: DG & CEO, FIEO, Dr Ajay Sahai exchanging MoU with Mr Vidmay Naini, India Country Manager, eBay during a function at New Delhi on February 27, 2019. Also seen are other dignitaries.