Indian MSMEs have tremendous potential in driving cross-border trade: Shiprocket
Driven by the power of MSMEs, India is on track to become the second largest ecommerce industry in the world, according to a Shiprocket survey.
India's micro small and medium enterprises (MSME) have the potential to drive tremendous growth in the country's ecommerce industry, allowing it to surpass the US and become the second largest ecommerce industry in the world by 2034, according to a new survey by logistics firm Shiprocket.
These small businesses, which contribute significantly to India's GDP, can help the ecommerce industry flourish and enhance cross-border trade, the survey said. This will also open up access to global markets for MSMEs, it added.
According to the survey titled 'The State of Cross-Border Trade' conducted by Shiprocket's cross-border shipping product, India ranks 9th in global cross-border growth. Its total merchandise exports continue to cross the $100 billion mark for the second consecutive quarter, amounting to $105.8 billion between October and December of FY22.
With the increasing acceptability of Indian products in the international retail market, MSME exports are playing a crucial role in powering 40% of India's overall exports, contributing to nearly 6.22% of the country’s GDP, Shiprocket said in a statement.
The phenomenon was mostly driven by a massive post-pandemic push that made retailers shift from mere brick-and-mortar establishments and embrace ecommerce both locally and globally. Active participation of consumers in shopping with global retailers also played a key role in boosting cross-border trade, Shiprocket added.
A total of 15 additional clusters pan-India clocked a surge in merchandise exports, with Gujarat contributing the highest to India’s overall exports, followed by Rajasthan and Delhi. These statistics point towards a strong demand indication for cross-border trade of Indian products, according to the survey.
"We have witnessed firsthand, the tremendous potential of Indian MSMEs in driving cross-border trade, and hence, at the core of Shiprocket lies the passion to empower the merchants of Bharat. This survey is a step forward in that direction and helps us decode the challenges and the expansion opportunities for Indian ecommerce brands," said Akshay Ghulati, Co-founder, Strategy and Global Expansion at Shiprocket.
Founded in 2017, Shiprocket is an ecommerce enablement platform, which enables shipping, fulfilment, customer communication, and marketing tools for large enterprises, SMEs, D2C retailers, and social commerce retailers in India.
It said it serves more than 27,000 retailers in the country who generate a gross merchandise value (GMV) of more than $3 billion annually. The platform delivers more than 220k shipments daily and is growing transactions 2.5-3X year on year, it said in a statement.
Edited by Megha Reddy