Technology will boost the role of MSMEs in India’s export success
₹5 lakh to ₹10 lakh. If India has to own a larger part of the global B2C e-commerce market, valued at $5 trillion in 2019, with international trade accounting for around 9% of that value (according to UNCTAD), then we need more and more MSMEs to be part of the global value chains (GVCs) of large companies like Amazon and Walmart-Flipkart.
Lower trade barriers, better knowledge of and strong customer demand for diverse products, coupled with advanced e-commerce technologies, will contribute to the growth of cross-border trade. India recognizes this potential and has taken various initiatives to tap it.
This includes integrating e-commerce into the FTP, discussing e-commerce under trade agreements, developing a dedicated portal for MSME exporters, and identifying export hubs. Digital trade agreements include provisions for collaboration to address barriers faced by our MSME exporters, while domestic market processes are being streamlined through technology to expedite customs and agency clearances, which will help by reducing costs borne and time taken.
By linking customs clearance portals with allied agencies and implementing a technology-driven risk management system, e-commerce cargo clearances can be accelerated. However, urgent attention needs to be paid to two particular measures: removing value limits on exports to facilitate high-value product shipments like handicrafts; and establishing a robust process for return consignments to avoid import duties.
India’s exports saw double-digit growth last year despite global uncertainties like the Russia-Ukraine war. To continue along this growth path and achieve the FTP’s stated target of $2 trillion in exports by 2030, MSMEs using e-commerce to sell overseas will play a
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