NEW DELHI: E-commerce has enabled micro, small and medium-sized enterprises to increase profits, reduce marketing expenses and expand their reach to new markets, Minister of State for MSMEs Bhanu Pratap said on Monday Singh Verma.
In his remarks at the CII India MSME Growth Summit, Verma said that MSMEs play an important role in creating jobs and expanding the manufacturing base in the country, and that it was necessary to focus more on them to achieve a saving of 5,000 billion dollars.
“Small businesses need to improve their management skills and make their technology base smart. In recent years, online marketplaces have grown through e-commerce, which has had a positive impact on MSMEs. MSMEs can generate profits higher through e-commerce. This will increase revenue and margin, expand reach to new markets, help them save on marketing spend, and customers will get a better experience,” Verma said.
He said that after the pandemic wave, the MSME sector has held firm. “There is a development in the MSME space and it is seen across the country. The main reason for this is the progression of changes in our public policies,” the minister said.
He said there were no masks or sanitizers when the corona period started in India. He said some MSME units fell ill, some were unable to pay their labor and for other reasons they were on the verge of closing.
The minister said Prime Minister Narendra Modi had considered the situation in advance and the Emergency Credit Line Guarantee Scheme (ECLGS) had been launched to help them. MSME Secretary BB Swain said the ministry is working to facilitate access to credit for MSMEs through various schemes.
“The total loan guaranteed under the ECLGS is Rs 3.47 lakh crore, of which the amount earmarked for MSMEs is Rs 3.1 lakh crore. The performance of the credit guarantee scheme has reached a milestone with warranty coverage of Rs 56,000 crore. This is the highest since its inception,” Swain said.
The minister present at the event also launched a report on the Indian D2C market compiled by Praxis in association with Shiprocket and CII. According to the report, Delhi, Bangalore and Mumbai are the major supply and demand hubs for most D2C (direct to customer) players who book orders online and ship products directly to customers.
The report estimates the grocery and gastronomy market size for the D2C segment at around USD 570.8 billion, jewelry at USD 82.4 billion, apparel and footwear at USD 80.7 billion, home decor, home, supplies and garden segment at around $26.5 billion, personal care at $18.2 billion. , electronics $9.4 billion, and healthcare $9.7 billion in fiscal year 2022.