Of the total retail sales in India, only 1.6% is done via online platforms such as Flipkart and Amazon and others even while e-commerce has boomed in the country in the past several years.
Of the total retail sales in India, only 1.6% is done via online platforms such as Flipkart and Amazon and others even while e-commerce has boomed in the country in the past several years. However, boosting e-commerce in the country will drive economic growth, the World Bank said in a recent report on Monday. “E-commerce can boost a range of economic indicators across South Asia, from entrepreneurship and job growth to higher GDP rates and overall productivity,” Sanjay Kathuria, World Bank Lead Economist and co-author of the report, said. Further, as compared to its other Asian peer China where online trade amounts to total 15% of retail trade and the global average of 14%, India’s e-commerce is way behind.
Countries in South Asia needs to tap on the potential of e-commerce as the same will help in bettering relations with other countries. “By unleashing its online trade potential, South Asia can better integrate into international value chains, increase its market access, and strengthen commercial linkages between countries across the region,” Sanjay Kathuria said.
- Roadmap for MSMEs' survival amid Covid 2.0: What govt must immediately do to tackle impending setback
- Ethereum now more valuable than Visa, JPMorgan Chase; Bitcoin-rival among top five financial services
- Govt buying from MSEs declines for second consecutive year even as share in overall procurement jumps
Small and medium enterprises believe that several challenges are plaguing e-commerce and removing them will boost their exports and employment by 20-30%. Areas such as payments, delivery, market access regulations, consumer protection, and data privacy need to be resolved for better operation, the report said.
Meanwhile, traders in the country have been protesting against e-tailers alleging that the same has destroyed Indian retail and indigenous talent. The war between traders and online platforms has only gained momentum and a traders’ body CAIT recently compared two of the leading online retail platforms Amazon and Flipkart with the British East India Company. The seven crore members-strong body has also asked for immediate action against e-tailers. In the past as well, the body has asked for shutting down of Jeff Bezos’ Amazon and Walmart-backed Flipkart’s India businesses. The union has alleged deep discounting and predatory pricing on the part of e-tailers.