MSMEs to overshoot profits via Global online exports

With exports gaining the limelight of every business, Indian MSMEs are not left behind in their global market share. MSMEs plan to overshoot profits as the MSME sector has been stormed by export orders, and MSMEs have created a niche for themselves, especially where export products of artisans, farmers, skilled workers, etc. are concerned. Online exports have grown to a large extent, and online orders have flooded the global markets through E-Commerce platforms, which are dominated by MSME exporters.

In 2021, 49.35% of Indian exports were from the MSME sector. The magnitude of the contributions made by the MSME sector to the Indian Economy is exceptional. Yet there are nations with food exports potentials which are not tapped to their maximum, namely, Australia, Canada, China, Europe, Gulf countries, Japan, Latin America, Mexico, New Zealand, UAE and USA.

In order to sustain growth, to overshoot exports, and to overcome upcoming export barriers, MSMEs will require to take into account the following factors:

1. Appropriate export distribution channels

2. Proper knowledge of legal and policy frameworks of foreign nations

3. Sufficient trade finance

4. Excellent quality of export products

5. Utilization of Export Promotion Councils(EPCs) to increase exports

The Chinese onslaught of goods has had a tremendous impact on Indian exports, wherein cheap & low quality and large scale production of Chinese goods have invaded world markets. To overcome such type of competitions especially from China, certain practices which may be adopted to survive in the competitive arena would be building brands, quality standards to be made mandatory, investing in innovation, scrutinizing supply chains and logistics build up. Due to global digitization, consumers have shifted their attention to online markets. Thus, E-Commerce has evolved as the in-thing for marketing of goods. India has huge potential for exports due to the trade dispute between US and China which has provided Indian manufacturers with opportunities like never before.