The surge of e-commerce in India is driving the growth of small and medium enterprises (SMEs), which in turn is contributing to new job opportunities and GDP contribution, a recent study shows, as reported by IANS.
The surge of e-commerce in India is driving the growth of small and medium enterprises (SMEs), which in turn is contributing to new job opportunities and GDP contribution, a recent study shows, as reported by IANS.
The study, jointly conducted by domestic e-commerce player Snapdeal and market research firm KPMG, which also claimed that e-commerce sector in India is projected to cross $80 billion by 2020, examined the macro-impact of the sector on the growth of SMEs and identified remaining gaps in the ecosystem that needed to be plugged.
As per the report, 85% of SMEs who adopted e-commerce believe that it is a cost effective medium for sales growth. The study also claimed that SMEs who actively adopt the internet for business activities boast 51% higher revenues, which results in 49% more profit and a 7% broader consumer base than their offline counterparts.
"At Snapdeal, we are working towards building the most impactful digital commerce ecosystem in the country and SMEs form the foundation of this ecosystem in many ways," said Kunal Bahl, Co-Founder and Chief Executive, Snapdeal.
The study also highlighted the importance of SMEs in the country which accounted for over 17% of the gross domestic product (GDP) in 2014 and contributed to 45% of the nation's industrial output and 40% of the total exports.
It also claimed that SMEs are capable of creating 1.3 million jobs per year.
"The fast paced growth of the e-commerce industry in India represents an unprecedented opportunity for SMEs. We hope that the findings of this report will assist policymakers, industry bodies and e-commerce companies to strengthen the support ecosystem, which enables SMEs to ride the e-commerce growth wave successfully," said Richard Rekhy, Chief Executive, KPMG India.
Snapdeal also said that it is aiming to disburse Rs 1,000 crore by the end of the year under its seller financing programmes. "We have zero non-performing assets (NPA) under the programme," Bahl added.
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