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
www.hemenparekh.in
/ blogs
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