The Indian government has said that it will soon launch an e-commerce platform just like Amazon and Alibaba that will sell products from micro, small and medium enterprises (MSMEs) and Khadi and Village Industries Commission. The news comes after the MSME minister Nitin Gadkari told the Lok Sabha that his ministry wants the online market to be accessible by such enterprises.
Nitin Gadkari has expressed his understanding of the potential of India’s MSME sector. He also added that these sectors were unable to market its products well to both local and global consumers. Gadkari said that in the next five years he wanted the MSME sector to contribute to 50% of India’s GDP, and also create 5 crore jobs.
While acknowledging the success of MSMEs is US & China by Amazon & Alibaba respectively, Gadkari said, “On those lines, for MSME and Khadi Gramudyog, we are going to launch a big marketing site. The preparations have started and a lot of people and industries will have access to it.”
Crediting to the government’s Digital India Initiative, more and more Indians are now turning to online shopping. With the growing interest and established trust factor between the online companies and consumers, the government app will have the headstart it needs.
Even though the Government comes with good intentions and a seemingly good plan of action, it still might face some challenges. The e-commerce industry bears losses in thousands of crores. And if the government wants its product to sustain in the market, it will have to enter well prepared to bear similar losses.
