The MSME Minister Nitin Gadkari is proposing to set up an e-marketplace for MSMEs, the key motive being to boost business, Foreign Direct Investment and increase export opportunities.
Possible benefits of the MSME e-marketplace:
Export Opportunity Is Picking Up:
Demand will slowly come back on the rise. Ajay Sehai, CEO of Federation of Indian Export Organisations states that there is an increased inquiry from larger companies coming into India for export orders. India is fast becoming the next alternative to China for exporting manufactured goods, and the Government sees this as a good opportunity for MSMEs to grow.
“The agriculture sector should definitely cash in on an export opportunity.” – Ajay Sahai
The Government also recently announced that it will export PPE kits and face masks to the rest of the world, including China. For MSMEs and businesses engaged in electronics and medical manufacturing, this is the right time to register on the GeM and the MSME e-marketplace to export their goods.
Also read: How to sell on the Government e-marketplace
Businesses still need to maintain social distancing
There is a heavy restriction on travel, but businesses can now resume international shipping in batches. While businesses need to maintain social distancing, an e-commerce platform for the MSMEs is the best bet to continue operations in the long term.
Foreign Direct Investment and NRI investment
Nitin Gadkari’s Ministry wants to attract more Foreign Direct Investment and NRI money into the MSME sector in India. The best way to do so is to give MSMEs an e-marketplace that caters to a global clientele. An MSME stock exchange will attract more foreign investors too, according to a statement made by the MSME Minister himself.
“We are planning to make an -marketplace for MSMEs like Alibaba and Amazon, and we are working on it. We cannot launch the site yet, but we will make it happen at the earliest” – Nitin Gadkari, MSME minister
MSME expectations from Government for business relief:
Do MSMEs want FDI and NRI investment at a time when there is no liquidity? Not for now, but it will be a welcome move from the sector if it ensures increased production and a financial backing by the Government. This also includes:
- Micro Credit Facility for MSMEs: Not all MSMEs are looking for a huge loan. The SME sectors biggest challenge since the lockdown has been maintaining a steady source of income, resulting in job losses, especially in the retail sector. MSMEs need easy access to microloan schemes from banks and Microfinance lenders.
- Kickstart Logistics within India: Before enabling exports globally, small businesses want to resume shipping services within India alone. The sector is now predominantly online, and orders are slowly filing in. MSMEs want the Government to allow for local logistics services to resume, in a safe manner.
- Evenly distribute working capital loans: The Government’s introduction of the emergency credit scheme is helpful, but there have been problems with the distribution of the loans. Small businesses need urgent cash flow to restart business and hire back employees.
The Instamojo Premium Online Store:
The Governments’ decision to start an e-marketplace and MSME stock exchange is welcome, but until then, Indian MSMEs want to resume and scale business locally. For that, you can set up shop on the Instamojo online store. The premium Instamojo online store comes with advanced features, themes, marketing tools and serves as an e-commerce portal for all small businesses.
To get started, check out our video here. All you need to do for now is sign up. We can help with the rest.