Trade, import, and export for MSMEs: If India can target about 2.5 lakh MSMEs moving into Cross Border Trade (CBT) space in the next 4 years, it can effectively list at least 1 lakh MSMEs with 5 million items and can boost 4 instances the current CBT income in B2C category, the government stated in its most recent draft e-commerce policy. Issued by the Department for Promotion of Industry and Internal Trade (DPIIT), the draft, having said that, noted that domestic makers, traders, sellers, MSMEs, and startups, which operate or intend to operate on a digital platform, continue to “struggle with compliances and costs which reduce their competitiveness and sustainability in international markets.” A copy of the draft was noticed by TheSpuzz Online.
“Only a fraction of MSMEs is engaged in cross-border e-commerce. There are around 6.5 crore MSMEs in India out of which 36 per cent are in the manufacturing space, which is around 2.3 crore. So, the target of 2.5 lakh MSMEs set by the government is, in fact, very low as many MSMEs haven’t emerged to operate on e-commerce portals. If they are able to successfully operate online in cross border e-commerce space, then it will work wonders,” Govind Lele, General Secretary, Laghu Udyog Bharati told TheSpuzz Online.
India’s exports declined had declined by .25 per cent to $27.67 billion in February 2021 vis-à-vis $27.74 billion in the year-ago period, according to preliminary information from the Commerce Ministry. Overall exports for the duration of April-February 2020-21 have been down 12.32 per cent to $255.92 billion from $291.87 billion for the duration of April-February 2019-20. MSMEs’ contribution to exports stood at 48 per cent for the earlier year even as the government intended to boost it to 60 per cent in the future, MSME Minister Nitin Gadkari had stated on many public events in the current previous.
Also study: Covid crisis: 88% PMEGP beneficiaries ‘negatively affected’ due to pandemic this numerous shut operations
DPIIT stated that export-oriented MSMEs would be offered with capacity constructing to assist aggregate cross-border shipments and deliveries, specialise in regional shipments. Also translation expertise, international tracking and options on overcoming international shipment challenges such as nation-certain government regulations would be offered. Moreover, MSMEs would also be supported to determine indicates to overcome currency barriers and familiarize with neighborhood customer behaviour. Further, measures would be taken to provide on the web lending, credit rating, finance, and transportation help to such enterprises by means of private and public banks.
The government also asked businesses in the e-commerce sector, which is led by Flipkart and Amazon, to assure equal therapy of all sellers and vendors registered on their platforms. It also asked them not to adopt algorithms which outcome in prioritizing choose vendors and sellers. Inter alia, “e-commerce operators must ensure to bring out clear and transparent policies on discounts, including inter alia the basis of discount rates funded by platforms for different products/suppliers and implications of participation/non-participation in discount schemes, so as to ensure fair and equal treatment.” The initial draft of the e-commerce policy was released in February 2019.