Expansion of the E-Commerce Industry to Boost Growth for Indian MSMEs

May 23, 2024
Updated on

Micro Small Medium Enterprises are the major contributors to the socio-economic growth of the Indian economy. There are approximately 48 million MSMEs in the country employing almost 40% of the laborers. These small businesses manufacture over 6000 products ranging from traditional to high-tech products in the country.

E-commerce is the online stage that allows the online trading of products from various industries. The growing number of smartphone users and the transformation of technology has made a significant increase in the use of the internet leading to a boom in the e-commerce industry. The customer engagement with a number of e-commerce platforms and MSMEs gaining the knowledge for online trading has initiated their journey with the leading portals.

MSME and E-commerce

In a nation that is developing at a higher rate, the rise in the number of MSMEs and their growth has broadened their opportunities to sell their products around the country. E-commerce is the most accessible platform, and inclusions for MSME will be catered to effectively.  

At the CII Indian MSME Growth summit, Verma said that MSMEs play an important role in the creation of jobs and expanding the manufacturing industry, hence there is a need to focus on their enhancement to achieve a USD 5 trillion economy. He added, “Small businesses need to improve their management skills and make their technology base smart. In recent years, online markets have developed through e-commerce which has had a positive impact on MSMEs”.

“MSME can generate higher profits through e-commerce. It will increase revenue margin and margin, extend reach to new markets, help them save marketing expenses and customers will get a better experience”.

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Participation of MSMEs in E-commerce

As per the stats, around 43% of the MSMEs are a part of the E-commerce industry, some advantages that the small business owners can reside for them are listed below:

  1. Customer experience is better
  2. Increase in revenue and margins
  3. Increased market reach
  4. Improvement in quality of market access
  5. Savings in marketing campaigns
  6. Customer acquisition is cost-effective
  7. Location and time independence
  8. Effective communication
  9. Competition advantages are better achieved

Roles of E-commerce in MSME Growth

Be it the central or state, the Government of India has always supported the growth of the MSME sector. Regardless of the industry or domain, small businesses are playing an important role and their growth will lead to an increase in the economical growth of the country.


To conclude it could be said that e-commerce has a great impact on the growth of MSMEs by providing them unending opportunities to market and sell their products at any point of time without the restriction of location. E-commerce has benefited these small businesses by removing the barriers, providing them with a great consumer experience and base leading to the expansion of their sales.

Kinara Capital, a leading fintech company is an RBI Registered Systemically Important NBFC in India which aims to empower small business owners by providing them collateral-free business loans. Kinara provides its services in 4500+ pin codes across 100+ cities and has disbursed over 100000 business loans worth over INR 6500 crores till date.

To expand your business, check your loan eligibility in the myKinara app in 1 minute with 7 language options available, choose your preferred vernacular language. Also, we have a dedicated customer support team available between Monday – Friday (9.30 AM – 6.00 PM) at our toll free number 1800-103-2683 for any questions or assistance. This ensures that entrepreneurs can get the help they need throughout the loan process.

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