Amazon Will Emerge As Strongest Enabler To MSMEs

E-Commerce platform Amazon will emerge as strongest enabler to these Micro Small and Medium Enterprises (MSME) due to its scale, a report by InGovern Research, a proxy advisory firm said.

“We predict that Amazon will emerge as the strogest enabler to these MSME due to its scale. While ONDC continues to take tiny steps, it must go a long way to compete with marketplace like Amazon. Global Selling is the next big leap for Indian MSME E-Commerce Sellers,” InGovern Research said in the report.

According to the report, under its global selling programme, Amazon has planned to enable USD 20 billion in cumulative exports by 2025, with apparel, toys, jewellery and home being the top export categories. The cumulative exports by Indian exporters under the programme are expected to cross USD 5 billion, while Amazon estimates USD 125 billion worth of Indian exports being driven by e-commerce by 2030.”

“There are more than 100,000 Indian exporters selling through Amazon Global Selling, it added. Though ONDC is being used for local e-commerce to compete against Amazon and Flipkart, it can be foreseen that ONDC may soon facilitate global exports,” it added.

The MSME sector of India contributes around 33 per cent of India's total GDP and it predicted to contribute worth USD 1 trillion to India's total export by 2030.

ONDC is a network based on open protocol and will enable local commerce across various segment such as mobility, food order, hotel booking and travel among others to be discovered and engaged by any network-enabled application.

It aims to create new opportunities, curb digital monopolies and help them get on online platform. It is an initiative of the Department for Promotion of Industry and Internal Trade. Though ONDC is being used for local E-commerce to compete against Amazon and Flipkart, it can be foreseen that ONDC may soon facilitate global export.

“Indian exporters, largely MSMEs, must grab the opportunity when the global buyers are looking up to India to execute their China plus one strategy and de-risking their China reliance. To this effort, global ecommerce platforms like Amazon and Walmart or Flipkart can be allies of Indian exporters,” it added.

According to a road map by Walmart for local sellers with export ambitions, the firm intends to expand its sourcing from India to USD 10 billion a year by 2027.

Meanwhile, India’s merchandise exports have registered the highest-ever annual exports of USD 447.46 billion with a 6.03 per cent growth in FY23, surpassing the previous year’s (FY22) record exports of USD 422 billion. 

The country is also eyeing to achieve an export target of USD 2 trillion by 2027.