India's Micro, Small, and Medium Enterprises (MSMEs) are at the dawn of a new era. With the power of global investments, e-commerce platforms, and a supportive national policy environment, these businesses are scaling new heights and expanding their horizons.
The recent visits by Indian Prime Minister Narendra Modi to the United States and his conversations with global business leaders have initiated a new chapter for Indian MSMEs. Amazon, the e-commerce giant, announced its plan to take investments in India to $26 billion by 2030, while Google's CEO Sundar Pichai, revealed Google's commitment to invest $10 billion in India's digitisation fund.
Wave of foreign investments for India MSMEs
What does this wave of foreign investments mean for the nation's MSMEs? Simply put, it signifies growth, opportunity, and transformation. Foreign investments, especially in the digital sector, can pave the way for enhanced market accessibility, simplified trading processes, and advanced technologies, all of which could turbocharge the performance of India's MSMEs.
A key factor in this blossoming landscape is the changing perception of MSMEs on a global stage. The world has begun to acknowledge the substantial contribution of Indian MSMEs to the country's GDP, which currently stands at approximately 33%. It's worth noting that the sector is expected to contribute a staggering $1 trillion to India's total exports by 2030.
Further fuelling this optimism is the government's support for MSMEs. In the 2023-24 budget, the Ministry of Micro, Small, and Medium Enterprises laid out several facilities designed to bolster the sector's participation in international trade. The provisions include the extension of credit schemes, reduction in tariffs and duties on imports and exports, and several incentives under the Foreign Trade Policy 2023.
Amazon, Walmart and ONDC
In the global e-commerce landscape, platforms such as Amazon and Walmart/Flipkart are seen as potential allies of Indian exporters. For instance, Amazon India's Global Selling Programme aims to enable $20 billion in cumulative exports by 2025, offering a lucrative platform for Indian MSMEs to reach international markets.
On the domestic front, the Indian government has also been making strides in empowering local businesses with the Open Network for Digital Commerce (ONDC). This initiative is designed to curb digital monopolies and help MSMEs and small traders migrate to online platforms, thereby democratising the e-commerce environment.
This rise of e-commerce exports is poised to take Indian MSMEs on an unprecedented journey of growth. As these businesses continue to navigate the evolving global landscape, it becomes clear that their resilience, innovation, and adaptability are invaluable national assets.