These Opportunities Will Help MSMEs Augment

MSMEs are a backbone of the Indian economy. They are primarily led by bourgeois classes, thus comprising 30.27 per cent share in the country’s GDP, according to the Ministry of Statistics and Programme Implementation. Over the past year, the MSME niche has jostled and consequently, many have closed their shutters. On one hand, the crisis built a bleak future for MSMEs whilst, on the other hand, generated a series of opportunities. 

Since MSME units are not much versed with technology and its benefits, they would stagnate in the long run and become prone to other disasters. At the moment, MSME companies should make use of opportunities that are laid in their hands. Besides selling directly to the consumers, they should become competent by augment sales through other channels as well. 

Increasing Exports 

In these unprecedented times, the MSME sector in India should make their presence in the international market. They can either find foreign buyers and export their products in other countries or get themselves registered on e-commerce marketplaces. Through these channels, the customer base will be increasing along with an upward spike in sales. 

“With the ongoing transformational changes in the consumer buying behaviors, the opportunity for e-commerce global trade has grown manifold and at eBay, we believe that only Indian MSMEs can ride this wave of change to bring back the country’s economy. To unlock this huge potential, there is one key thing that MSMEs need to focus on i.e., becoming globally competitive by building an efficient and low-cost retail export channel,” Vidmay Naini, Country Manager (India) at eBay, told The Economic Times. 

Trading in Retail Exports 

As trade is normalising, an increase in the exports has been witnessed. According to a report by The Ministry of Commerce and Industry, exports in India have increased to $35,430 million in July, 2021 from $27,450 million in January this year.  

As per Trading Economics that sourced data from the Ministry of Commerce and Industry, in recent years, India exported mostly in pearls, precious and semi-precious stones and jewelry (16 per cent of total shipments); mineral fuels, oils and waxes and bituminous substances (12 percent); vehicles, parts and accessories (5 per cent); nuclear reactors, boilers, machinery and mechanical appliances (5 per cent); pharmaceutical products (5 per cent); and organic chemicals (4 per cent). 

The rise in export of retail products shows that MSMEs should engender or trade more in retail products since such products have high demand abroad. Some of the main export partners of India are the United States (15 per cent), United Arab Emirates (11 per cent), Hong Kong (5 per cent), China (4 per cent), Singapore (4 per cent) and the United Kingdom (3 per cent).

Embracing Digitization

During the pandemic, making a presence on the Internet and employing digital means to augment the business was a survival strategy for MSMEs. The new means of survival empowered small businesses in India and abroad. Digitization has become a golden opportunity that MSME companies should grasp to cope up with the changing customer behaviour. 

The MSME sector in India should quickly adopt these changes to stay competent in the global market. Besides this, they need to take adequate measures to combat fiascos and upskill themselves in the niche of risk management.