MSMEs Wants FDI to Allowed for B2C Ecommerce

MSMEs Wants FDI to Allowed for B2C Ecommerce

While urging to the Government that programs like ‘Make in India’ cannot happen without a ‘buy in India’ also. In this perspective some of the leading manufacturing and industry associations, like the Textile Association of India, All India MSME Association and Gem and Jewellery Trade Council of India came together to submit a written representation requesting the Honourable Minister of Commerce and Industry, Ms Nirmala Sitharaman to review the policy of opening the B2C Ecommerce sector to FDI.

Ecommerce is emerging as a strong channel driving consumption and growth in the country. The technology platform of Ecommerce companies has enabled manufacturers to access wider distribution and marketing channels at much lesser prices. They are now able to access a wider national and even global market at the click of a button. In their written representation, the various manufacturer’s associations pointed out that opening the B2C model will enable manufacturers to sell directly to Ecommerce companies who can then use their own inventory and supply chain to sell it directly to the consumers. This will also give the manufacturers access to a reliable and faster supply chain for the delivery of their products. 

Commenting on this, Arvind Sinha, National President, The Textile Association India (TAI), said, “The textile sector contributes about 14% of industrial production and employs about 35 million people. By enabling inventory led B2C Ecommerce to grow in the country, manufacturers will be able to supply directly to Ecommerce companies, benefiting from their inventory and supply chain as well as access to their global platforms for a wider customer base. It is therefore our appeal to the government to open Ecommerce to FDI to enable growth of manufacturing in the country and create success for Make in India.”

Anupam Gupta, Chairman – IT & Innovation Committee, All India MSME Association said, “Today due to Ecommerce,sales in apparel have doubled to reach $559 million from last year, with an estimated growth rate of 20 percent per year. The fashion segment is projected to reach $2.9 billion by 2016.This growth needs to be further expanded and sustained over a longer period of time. Allowing Ecommerce to operate freely without any restrictions will have a beneficial impact on the eco-system and sectors like us who are benefitting from its growth. It is therefore our humble request to the government to consider liberalization of B2C Ecommerce in the country.”

Another beneficiary has also been the jewellery sector. “In India, where buying gold traditionally means a trip to the trusted family jeweller, the growing Ecommerce market is starting to challenge all conventional wisdom. The Ecommerce platform has enabled many smaller jewellery designers and manufacturers, across the country, to scale quickly; and over the next few years, the online jewellery space is estimated to grow by 60-70 per cent annually. It is therefore critical that Ecommerce is promoted and sustained in the long-run in the country” says Shantibhai Patel, President, Gem and Jewellery Trade Council of India.