Topic: Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth.
6. By adopting e-commerce, MSMEs stand to gain significant advantages such as increased revenues, improved market reach and customer acquisition. Examine. (250 words)
Difficulty level: Moderate
Reference: Live Mint
Why the question:
As India’s economic recovery remains fragile, it would be prudent to help fast-track India’s e-commerce sector and the onboarding of MSMEs, which account for an estimated 30% of India’s gross domestic product (GDP) and constitute more than 40% of exports.
Key Demand of the question:
To write the various benefits from MSME’s adopting e-commerce.
Examine – When asked to ‘Examine’, we must investigate the topic (content words) in detail, inspect it, investigate it and establish the key facts and issues related to the topic in question. While doing so we should explain why these facts and issues are important and their implications.
Structure of the answer:
Begin by stating statistic regarding the importance of MSME to the Indian economy.
First, mention the adverse impact of the pandemic and current difficulties faced by MSME’s.
Next, write about the impact that e-commerce can have in MSME’s – economic stability, growth and security, even the smallest MSMEs to showcase their products in any part of the world, removing barriers, providing a large customer base and consequently, ensuring increased revenues, transformation at minimal costs, investment and innovation etc.
Next, write about various obstacles for MSME’s to adapt e-commerce and suggest steps to overcome them.
Conclude with a way forward to address these issues.