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E-commerce driving India’s SME growth

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New Delhi:  The surge of e-commerce in India is driving the growth of small and medium enterprises (SMEs), which in turn is contributing to new job opportunities and GDP contribution, a recent study shows.

The study, jointly conducted by domestic e-commerce player Snapdeal and market research firm KPMG, which also claimed that e-commerce sector in India is projected to cross $80 billion by 2020, examined the macro-impact of the sector on the growth of SMEs and identified remaining gaps in the ecosystem that needed to be plugged.

As per the report, 85 percent of SMEs who adopted e-coommerce believe that it is a cost effective medium for sales growth. The study also claimed that SMEs who actively adopt the internet for business activities boast 51 percent higher revenues, which results in 49 percent more profit and a seven percent broader consumer base than their offline counterparts.”At Snapdeal, we are working towards building the most impactful digital commerce ecosystem in the country and SMEs form the foundation of this ecosystem in many ways,” Kunal Bahl, co-founder and chief executive of Snapdeal said.

“With over 200,000 sellers operating on our platform, we felt the need to conduct a systematic unbiased study to identify opportunities and challenges to further accelerate the growth of the sector.”

“We have taken a number of initiatives like seller training programmes, seller financing programmes – Capital Assist and Snapdeal Seller Advisor Programme, with an aim of creating life changing experiences for over one million sellers in the next three years. This study has given us deeper insights into what more we can do to enable small businesses become more successful online,” he added.

The study also highlighted the importance of SMEs in the country which accounted for over 17 percent of the gross domestic product (GDP) in 2014 and contributed to 45 percent of the nation’s industrial output and 40 percent of the total exports.

It also claimed that SMEs are capable of creating 1.3 million jobs per year.

“The fast paced growth of the e-commerce industry in India represents an unprecedented opportunity for SMEs. We hope that the findings of this report will assist policymakers, industry bodies and e-commerce companies to strengthen the support ecosystem, which enables SMEs to ride the e-commerce growth wave successfully,” Richard Rekhy, chief executive of KPMG India, said.

Snapdeal also said that it is aiming to disburse Rs.1,000 crore by the end of the year under its seller financing programmes.

“We have zero non-performing assets (NPA) under the programme,” Bahl added.

(IANS)

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Three Projects Help India to Stop its Share of Water to Pakistan after Pulwama

The waters of the western rivers - the Indus, Jhelum, and Chenab - averaging around 135 MAF, were allocated to Pakistan.

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Picture Courtesy:-www.economylead.com

The government has envisaged three projects to give intent to its decision to stop its share of water from three eastern rivers of the Indus system – the Beas, Ravi and Sutlej – from going to Pakistan.

The decision was affirmed by Water Resource Minister Nitin Gadkari on Thursday in the wake of Pulwama terror attack though the Union cabinet had approved implementation of one of the key projects – Shahpurkandi dam – in December last year.

The waters of the western rivers – the Indus, Jhelum, and Chenab – averaging around 135 MAF, were allocated to Pakistan except for “specified domestic, non-consumptive and agricultural use permitted to India”, according to a treaty.

India has also been given the right to generate hydroelectricity through run-of-the-river (RoR) projects on the western rivers which, subject to specific criteria for design and operation, is unrestricted.

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However, about 2 MAF of water annually from Ravi is reported to be still flowing unutilised to Pakistan. VOA

To utilise the waters of the Eastern rivers, India has constructed the Bhakra Dam on Satluj, Pong and Pandoh Dam on Beas and Thein (Ranjitsagar) on Ravi. These storage works, together with other works like Beas-Sutlej Link, Madhopur-Beas Link and Indira Gandhi Nahar Project have helped India utilise nearly the entire share (95 per cent) of the eastern river waters.

However, about 2 MAF of water annually from Ravi is reported to be still flowing unutilised to Pakistan. The other two projects are Ujh multipurpose project and the second Ravi Beas link below Ujh.

Here’s the reality check of the three projects:

Shahpurkandi Project: It aims to utilise the waters coming from powerhouse of Thein dam in order to irrigate 37,000 hectares of land in Jammu and Kashmir and Punjab by generating 206 MW of power.

The project was scheduled to be completed by September 2016. However, following a dispute between the two states, work was suspended in August 2014 but they reached an agreement last September and the construction work has now resumed with the Centre monitoring its progress. The central government had in December last year announced assistance of Rs 485 crore for the project and it would be completed by June 2022.

 

India, pakistan, pulwama, water ban
The decision was affirmed by Water Resource Minister Nitin Gadkari on Thursday in the wake of Pulwama terror attack. VOA

The project will create irrigation potential of 5,000 hectare in Punjab and 32,173 hectare in Jammu and Kashmir.

Officials said that some water of the Ravi is going waste through the Madhopur Headworks downstream to Pakistan and it is required in Punjab and Jammu and Kashmir.

The total balance cost of pending work in ShahpurKandi Dam project is estimated Rs 1,973.53 crore (irrigation component: Rs 564.63 crore, power component Rs1408.90 crore).

The Shahpurkandi Project was initially approved by the Planning Commission in November, 2001. Revised costs were approved, but there was delay in its execution both because of lack of funds with Punjab and inter-state issues with Jammu and Kashmir.

An agreement was finally reached between the two states under the aegis of Water Resources Ministry in September last year.

Ujh multipurpose project: Construction of the Ujh multipurpose project will create a storage of about 781 million cubic metres of water on Ujh, a tributary of Ravi, for irrigation and power generation and provide a total irrigation benefits of 31,380 hectares in Kathua, Hiranagar and Samba districts of Jammu and Kashmir.

The total estimated cost of the project is Rs 5,850 crore and the Central assistance of Rs 4,892.47 crore on works portion of irrigation component as well as the special grant is under consideration. The project is yet to be implemented and it will take about six years for completion.

Second Ravi Beas link below Ujh: The project has been planned to tap excess water flowing down to Pakistan through Ravi by constructing a barrage across it for diverting water through a tunnel link to the Beas basin.

The project is expected to utilise about 0.58 MAF of surplus waters below Ujh dam by diverting the same to the Beas basin.

 

india, pakistan, water share, pulwama
Officials said that some water of the Ravi is going waste through the Madhopur Headworks downstream to Pakistan and it is required in Punjab and Jammu and Kashmir. Wikimedia

The water distribution treaty between India and Pakistan was brokered by the World Bank in 1960 to use the water available in the Indus system of rivers originating in India.

 

ALSO READ: IOC Cancels Places for 2020 Tokyo Games from India after it Refused Visas to Pakistan

The Indus system comprises Indus, Jhelum, Chenab, Ravi, Beas and Sutlej rivers. The basin is mainly shared by India and Pakistan with a small share for China and Afghanistan.

Under the treaty signed between India and Pakistan in 1960, all the waters of the three eastern rivers, averaging around 33 million acre feet (MAF), were allocated to India for exclusive use.  (IANS)