Introduction
With internet usage booming in India, Micro Small and Medium Enterprises (MSME) sector is undergoing a stellar growth phase. Thanks to eCommerce, the #MSME sector has gained muscle like never before. In this article, we explore some of the facts & figures of the Indian #MSME.
eCommerce and The MSME Sector in India –
Facts & Figures
Definition of MSME
Under the new definition, a firm with a turnover of Rs. 5 Crore is called a micro-unit. A firm with up to Rs. 50 Crore will be called a small unit and turnover greater than Rs.100 Crore is called a medium unit.
MSMEs are India's economic growth engine.
#MSMEs are critical to the growth of the Indian economy, employing over 114 million people and contributing more than 30% of India's GDP.
The #MSME sector accounts for roughly 45% of total manufacturing output and 40% of total exports in India.
Currently, approximately 48 million SMEs operating in India, employing 40% of the workforce. MSMEs generate the highest rate of employment in India after agriculture. Furthermore, the number of new entrants into the SME sector is increasing at a rate of 23% in manufacturing and 31% in services. The MSME sector is a true growth engine for the Indian economy.
Micro-enterprises account for the vast majority of Indian MSMEs
According to data shared by MSME Minister Nitin Gadkari in the Rajya Sabha, micro-enterprises dominate the registered MSME sector, followed by small and medium-sized enterprises. The number of registered MSMEs until 2020 is shown below.
eCommerce to boom by 2030
The Indian retail market is the fourth largest in the world, worth $850 billion, and the Indian #eCommerce sector is expected to grow to $300 billion by 2030.
This is already changing the way small and medium-sized businesses in India operate. More encouraging is the increase in the number of internet users in India. Currently ranked second in the world, with 560 million internet users, China is expected to surpass 1 billion by 2025. This predicted growth of internet users provides an amazing opportunity for Indian #MSMEs to become digital-ready.
Only 43% of MSMEs participate in the eCommerce space
#MSMEs in India have an online presence or not, but 43% of them participate in online sales. MSMEs can gain significant benefits from implementing #eCommerce, including:
✅ Improved market reach
✅ Access to new markets
✅ Cost savings in marketing and customer acquisition
✅ Improved customer experience
✅ Increased revenues and margins
Summary
Small and medium enterprises are said to be the backbone of the Indian economy, and there has never been a better time for these businesses to grow and establish a market presence. The future is full of opportunities for MSMEs, thanks to India's thriving eCommerce sector.
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