Govt working with SBI to launch e-commerce portal for MSMEs; to take on Amazon, Flipkart, others

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Updated: January 21, 2021 11:28 PM

Ease of Doing Business for MSMEs: The government currently already has a business-to-business marketplace Government e-Marketplace (GeM) to help MSMEs sell directly to government organisations and departments.

Karnataka 11,000 crore projects, karnataka nation highway projects, nitin gadkari, roud and transport ministry, ministry of msmeIndia is likely to have 300-350 million online shoppers by 2025 from 100-110 million in 2020. (PTI Image)

Ease of Doing Business for MSMEs: The MSME Ministry is working with the State Bank of India to launch the e-commerce portal for MSMEs that will help them market and sell their products in India and internationally similar to platforms such as Amazon and Alibaba, MSME Nitin Gadkari said in a webinar organised by the All India Association of Industries. The e-commerce portal called Bharat Craft was announced by the government around mid-2019 and since then has been in the works. “For the marketing support of MSMEs, we are going to create an e-portal like Alibaba and Amazon. This is a live gateway for MSMEs to take products to the world and global market. We are working with the State Bank and as early as possible we will make this,” Gadkari said.

The government currently already has a business-to-business marketplace Government e-Marketplace to help MSMEs sell to government organisations and departments and has reportedly been planning to open it for private businesses as well to buy from MSMEs. With the launch of a government-owned B2C marketplace ahead where MSMEs would be able to sell directly to consumers, it would compete directly with large private incumbents including Flipkart, Amazon India, Snapdeal, and more. The marketplace “should soon see turnover on the platform to the tune of Rs 10 lakh crore in the next few years and this would benefit MSMEs in a big way,” Gadkari had said at the listing of 200th MSME on the National Stock Exchange (NSE) Emerge platform in 2019.

Also read: November YoY growth in bank credit to MSEs declines marginally from October YoY, shows RBI data

India’s e-commerce market is expected to grow from $50 billion in 2018 to $84 billion in 2021 and $188 billion by 2025 on the back of increasing internet user base and favorable market conditions, as per Statista. India is likely to have 300-350 million online shoppers by 2025 from 100-110 million in 2020, according to a report by Bain & Company and Flipkart. This will also lead to nearly 30 per cent CAGR of gross merchandise value of the e-retail market, which is led by Amazon, Flipkart, Snapdeal, others, from $30 billion in FY20 to $100-120 billion by FY25 — around 4X growth.

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