E-Commerce Can Give Small-Town MSMEs Greater Access To Global Markets: Experts

New Delhi, Sept 5 (KNN) Government measures to promote exports through e-commerce could provide a major boost to businesses in small towns by helping artisans, traders and MSMEs access international markets, experts said.

Products across sectors such as handlooms, handicrafts and jewellery could benefit from the wider global reach offered by e-commerce platforms, reported PTI.

“E-commerce is allowing a seller in Karur, Panipat, Jaipur, Moradabad or Tiruppur to reach overseas buyers much earlier in its growth journey,” said Gaurav Shishodia, Vice President and Country Manager, Payoneer India.

Cross-Border Payments Key For Smaller Exporters
Shishodia said customer discovery was only the first step, with small exporters also requiring reliable cross-border payment infrastructure as order volumes increase and international sales become a larger partof their businesses.

He said traditional export models have often favoured larger companies with established overseas partners, distribution networks and the ability to manage bulk shipments.

E-commerce can lower some of these entry barriers by allowing smaller sellers to start with relatively modest order volumes, he added.

For small exporters, reaching customers across multiple international markets could also help reduce dependence on a single market or sales channel and build more resilient export businesses.

Payoneer said the next phase of e-commerce export growth would depend on making cross-border payments simpler, more reliable and easier for smaller exporters to manage.

GTRI Targets USD 350 Billion E-Commerce Exports
Think tank Global Trade Research Initiative (GTRI) has suggested that India target USD 350 billion in goods exports through e-commerce by 2030.

GTRI has proposed separate regulatory frameworks and ecosystems for direct e-commerce exports and overseas warehouse models. Its recommendations include supporting firms in establishing warehouses in key foreign cities, providing export incentives at par with physical shipments, strengthening marketing support and creating regional e-commerce export hubs for MSMEs.

The government has permitted foreign direct investment (FDI) in an inventory-based e-commerce model exclusively for export purposes and is also working to establish dedicated public-private partnership e-commerce export hubs.

These measures could help integrate smaller businesses from emerging commercial centres into global supply chains while expanding the geographical base of India’s export-led growth.

(KNN Bureau)