Question

Government, whether of any state or Centre, on various platforms, has always accepted the potential of Micro, Small and Medium Enterprises (MSMEs) in India and the pivotal role they play in the Indian economy. No matter what the industry or domain is but MSMEs always contribute a major role in the growth of the particular sector. But, with the advent of the internet, the MSMEs have gained muscle like never before by catering to an online audience. Internet was once the weakness of MSMEs in India but with the passage of time, the weakness turned into the strength of MSMEs and eventually e-commerce proved to be a gamechanger for Indian MSMEs. Raghunandan Saraf, Founder & CEO, WoodenStreet, shares his knowledge on how e-commerce has been a gamechanger for Indian MSMEs.

"The solid impact of e-commerce growth on MSMEs in India was bound to happen. Moreover, the backbone of Indian economy i.e. MSMEs is witnessing a big boom as the e-commerce industry has been directly impacting the MSME sector due to support from various allied forces like finance and technology. The e-commerce industry for the past many years has been showing its positive impact on MSMEs. The emergence of online marketplaces through e-commerce acted as nothing less than a catalyst for growth and achieving momentum to continue in future as well. MSMEs and e-commerce have been acting as the two wheels of the same chariot. Due to the e-commerce boom in India, the favourable cascading effect has also been noticed," Raghunandan Saraf said.

According to Statista, the e-commerce market in India is expected to reach $84 billion in 2021 owing to unprecedented and ever-growing internet users in India. "With the support of e-commerce, MSMEs acted as the engine of growth and economic development in India. Now, when any business entity prepares for a setup, mostly it first opts for online and then offline, and such is the power of e-commerce for MSMEs. MSMEs have been adopting e-commerce channel to register themselves and create their own niche in their respective business domains," says Saraf. Moreover, if we talk about online shoppers in India, due to the favourable market conditions, the size is poised to reach 300-350 million size by 2025. As per a report by Bain & Company and Flipkart, due to never before like push in the e-commerce market in India, 30 per cent CAGR of gross merchandise value of the e-retail market is likely to be witnessed from $30 billion in FY20 to $100-120 billion by FY25. This means the stage is set for nearly 400% growth for MSMEs as well," concludes Saraf.



i) Answer the following questions. (2x3= 6)

a. What are MSMEs?

b. How does the internet impacts MSME?

c. According Mr. Saraf, how does the e-commerce supports MSMEs growth in India?



ii) Complete the following (1x4=4)



a. ___________ is the backbone of Indian economy.

b. E-commerce impacts the MSME sector due to support from allied forces like ___________ and ___________.

c. ___________and ___________ have been acting as the two wheels of the same chariot.

d. According to the Statista, the e-commerce market in India is expected to reach _________ in 2021 owing to overgrowing internet users in India.​

Answer 1

Answer:

i wont read your question at all

Explanation: