One of the agendas on the list of the Government is the development of small and medium enterprises (MSMEs) in the country.
In its efforts to develop MSMEs, the Government plans to come out with an Alibaba-like online marketplace that is expected to garner a turnover of around Rs. 10 lakh crore in next 2 to 3 years.
This was recently confirmed by the MSME minister Nitin Gadkari in a statement.
Elaborating on the same, Gadkari said “We are developing an e-market portal like Alibaba, which we will call Bharat Craft. This will provide a direct interface between buyers and sellers.”
This untapped market has a huge potential to generate income and employment in addition to boosting exports so as to aid economic growth in the country, as the sector currently contributes 29 per cent to India’s GDP.
Adding further, the minister said “We will take this to 50 per cent in next 5 years. Also, the sector gives employment to about 11 crore people currently, which we will take to 15 crore in next 5 years.”
But this initiative has to be supported with technological innovation, making the sector investor-friendly, creating new channels of funding, reducing logistics cost and providing adequate market support.
The recent announcements like bank mergers, increasing liquidity of banks, transparent one-time settlement policy, online loan tracking, fast track collaboration for loans between PSBs, will benefit the sector greatly and Gadkari said that multilateral banks like ADB, World Bank and KfW have agreed to provide low-cost funds for the sector.