Impact of E-commerce on Indian SME's

Impact of E-commerce on Indian SME's

e-Commerce in India is a relatively novel phenomenon, especially when compared with the markets in US and China. But it had grown to become a USD 13.5 billion flourishing industry in 2014 and is expected to be USD 80 billion market by 2020. e-Commerce is already changing the way businesses operate in India and business owners/ stakeholders operating across all business strata are looking for opportunities to embed digital sales into core business to gain competitive advantage.

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Impact of E-commerce on Indian SME's

 e-Commerce brings in  significant opportunities for the Small and Medium-sized Enterprises (SME) sector in India which accounted for more than 8 per cent of the GDP in 2014. Notwithstanding the contribution to the Indian economy, only a miniscule percentage of enterprises in this sector are present on the web.  With retail trade and services accounting for more than 60 per cent of the overall SME market in India, there is huge potential for the sector to benefit from e-Commerce adoption.

The Indian government, Indian regulatory bodies are already doing their bit in facilitating the growth of SMEs by introducing initiatives such as “Make in India” and “Digital India” which will help boost India’s GDP. This whitepaper puts together a business case with the principle purpose to introduce a way of thinking that would cause various stakeholders in the e-Commerce ecosystem to consider value, risk and priority as fundamental elements for efforts to be put in the direction of increase in adoption of e-Commerce by SMEs.

© 2016 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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