Indian economy – That Madras Mom

Shopping is a therapy to many. Checking out the aisles of stuff going round trying to see if you could pick up something, look at what others choose to shop are all various events that one would notice when you set out to shop. They could also be disadvantageous to few.
When the pandemic hit, we were all holed up at our homes. Shops big or small were all closed up. The world of offline shopping didn’t expect to see itself going into a black hole which was taking it to darkness for an infinite period. And for those whom I mentioned that shopping was a therapy it was a total crash landing.

Ecommerce even way before pandemic was well established. In fact, there were a sect of people who stopped doing offline shopping and only stuck to shopping online. I myself belong to that category. I found that it made my way of shopping much easier and whenever I want to.

The pandemic was also the time when businesses decided that they will have to shift to the online paradigm. They knew that was the only way that the Business would continue to see the light until the pandemic ends.

Online shopping through e-commerce saw a drastic rise in purchasing capabilities thanks to the pandemic. Vendors continued to move ahead with their business collaborating by onboarding their business with already existing ecommerce majors or sought to make a standalone website.

While we still reel under the pandemic wave, ecommerce still continues to boom even if shops open up online because some of the recent users felt that the choice, they made to shop online convinced them that this could make it easier for them.

Vendors in the tier 2 cities also saw through vast expansion in their reach through the online venture that they decided to go on with it even if the pandemic is gone forever. If it is boosting your economy why not continue to do it was what they thought.

The steady rise in the shopping trend also contributed to the economy. Be it whatever category that is being shopped the country is benefited through the taxes. So this helps boost the economy of the nation as well.

So why would people continue to shop online or why does online shopping remain popular trend?

Ease of shopping.

Ecommerce brought in the comfort of shopping from home. I needn’t get squished in the crowds or wait for the sales person to show me other options similar. I can shop while cooking, reading or even while lying down on the bed.

Everything within few clicks

The technology in ecommerce is so very advanced that within a few clicks and scrolls I could shop for the entire family. Right from choosing to making the payment it is all very simplified.

Options to share

Say I’m shopping for my mom, I don’t have to drag her to the shop, make her wait and patiently check on what she chooses. With the apps available on phones, we could check and share across, get to know the choice, make payment and get it delivered. Especially a savior if you stay away from home. Also makes both of you happy, doesn’t it?

Unlimited choices

The ecommerce website algorithm is so well versed in understanding the human actions because while you keep shopping, we are also shown similar interests or even options that would go well with the commodity that we are about to buy. This makes our planning much easier. Say I’m buying an attire, I also get suggestions on the accessories that would go well with the look. I needn’t go look for it separately that I just hit one click buy this combo and my job is done.

Ease of payments

The biggest problems when it comes to offline shopping is the big queues at the billing desk. The change for the currency and the working condition of card swiping machine. It really makes you go nuts when you’re almost about to get your cart billed, the card machine stops working or there is no proper change.
Online shopping has hassle free payment methods like using debit cards, credit cards, net banking, UPI and digital wallets. Added to that you get amazing discounts if you’re using any particular type of cards.
You also get the option to choose COD(Cash on Delivery), I don’t think that would even be possible when you do offline shopping.

There is no worry of theft in case of shopping in a crowded place, the payment you make is secure.

Cashbacks

Online shopping payments methods also offer various cashbacks which is great to lure in customers. Who wouldn’t want to save some money?

Augmented reality and virtual reality

This has made it easy especially when it comes to trials in case of apparels and accessories and the order of placement when it comes to furniture or home décor. I cannot really imagine how the piece of décor or furniture would suit my space by imagining it over in my head rather than getting to see a real image of how it would actually look on my screen.

Reviews and comparisons

Reviews and comparisons between different brands is made clear when you shop online. You get to know what you actually buy is going to be genuine and worth the investment that you are going to make. This won’t be possible in offline shopping.

Online shopping has way more advantages than its disadvantages. The ecommerce industry is continuing to see steady rise as we speak as the word of mouth and even digitization spreads its benefits. As long as people continue to shop online, they would be seen as one of the main contributors to the country’s economy.

This post is Written as part of Blogchatter’s campaign #ECommerceBuildsEconomy

The Government of India introduced Micro, Small and Medium Enterprises in agreement with the Micro, Small and Medium enterprises development act of 2006. Predominantly these enterprises engage in producing, manufacturing, processing, and preserving goods and commodities.

Also referred to as the backbone of the country next to agriculture. They play a dominant role in contributing to the country’s GDP, manufacturing output, and the country’s exports.

The enterprises generate a lot of employment opportunities thereby helping bridge the gap between unemployment and poverty; also paving the way for the development of the rural areas in the country.

They have helped industrialization in these areas with low capital cost compared to large industries. In complementary to the large business sectors, MSMEs have a major part in the country’s economy, thereby helping in the socio-economic development of the nation.

They produce and manufacture both for domestic and international markets. So much advancement and product improvement has been seen in the khadi and coir industries. The upbringing of rural areas has been one of the major outcomes of the MSMEs collaboration with the various ministries and State Governments.
To be precise the 6.3 crore MSMEs are not only contributing one-third to the nation’s GDP but also help in the employment of the population in the non-formal sector.

The MSMEs play a major role in the transformation of India from an emergent power to a reputable financial center. Not wrong in saying that the MSMEs will be the gear in the wheel for this journey.

Importance of MSME for the economy

Throughout the world, the MSMEs have been accepted to be a major means of economic growth and for the promotion of justifiable development. The rate of growth in the highest rate is from the MSMEs.

Requiring Low investment for setting up, flexible operation, and the ability to develop the native technology accordingly are few major reasons that MSMEs have for having taken India to greater heights.
The second-largest employment generating sector next to agriculture, employing about approximately 120 million people.

MSME ministry targets to increase the GDP to 50% due to their contribution by the year 2025, as India moves ahead to become a $5 trillion economy.

At present, they contribute about one-third of the GDP which is 6.11% from manufacturing, and about 24.63 from the MSME service activities of the 45 lac units across the nation.

MSMEs contribute about 45% of the overall exports.
By specifically employing the people in weaker sections of the rural society, the MSMEs promote all-round development through the provision of employment opportunities.

Opportunities to utilize banking services and products are encouraged to be used by MSMEs in tier 2 and tier 3 cities thereby an additional way wherein the amount can be used in the inclusion of the final economy contribution.

MSMEs encourage innovation in budding entrepreneurs to build new products thereby boosting the growth and help in fueling the economy.

COVID-19 and its impact

MSME’s play a crucial role in realizing the vision of ‘Aatmanirbhar’ or self-reliant India. It was also one of the hardest-hit sectors due to the COVID -19 pandemic as the supply chains in world trade took a major jolt and came to a standstill. The government has been lending helping hands to regain the momentum in these sectors, knowing that prioritizing the development of these sectors is critical to the overall development of the Nation. As much as the Government provides support to these sectors, the benefits can be utilized only if the Business is registered as MSME under the MSME act.
An economic package was proposed to regain the momentum, about 20 lac crores almost 10% of the GDP was brought in to help all sectors including the farmers, middle-class people, industrial units, and MSMEs.

LOAN TO MSME

Around two lakh MSMEs would be benefited from the 20,000 crore subordinated debts announced for MSMEs.
A collateral loan of three lac was provided with a tenure of four years.
The definition of MSMEs was changed which now included turnover as one of the parameters in addition to investment. Micro units can have a 5 crore turnover, with no global tender for up to 200 crores and any pending payment to the MSMEs to be made in 45 days.
A 12month moratorium on the loans and a 100% credit guarantee cover to be provided as well. These loans were provided until October 31st this year. Close to 45 lac MSMEs were supposed to be benefitted from this.
Global tenders up to 200 crores were banned in any Government venture, as foreign companies are bright competitors and use unfair practices to procure the opportunities. The result of which Indian MSMEs falling prey to such international giants. Banning these will help enhance the vision of a self-reliant India and also enable ‘make in India’ to come true sooner.

As the Government now highlights the role of MSMEs in enhancing exports and thereby making our country self-reliant, the need to import from China will stop. These were the Union Minister, Nitin Gadkari’s thoughts that echoed in his meeting .

Being self-reliant already being implemented in industries such as automobile and agriculture, solutions have been seemingly found and the need to import from China has certainly not been seen as a necessity. The results of which were seen sooner as India was now observed to export a lot than importing.

He also said that as far as Indian policies are concerned, our way of technology acceptance, reducing the production cost and providing products of good quality, the young talented manpower in the country is no doubt the strength behind the achievement of self-reliant India.

With the majority of countries not interested to be dealing with China currently, rather providing an advantageous situation for us; as they are rather interested in doing business with India. A great opportunity for the manufacturing sectors to scale up capabilities to boost exports and thereby contributing to the increase in the economy.

With positive trends showing lesser imports from China and greater exports, the minister added that MSMEs are doing a great job despite facing an economic crisis. He also added that the Government had sanction 93 schemes and over 100 schemes are in pipeline would be cleared sooner to pave the way development of MSMEs.

Certain areas that could boost the development of MSMEs at a quicker rate would be below

Artificial intelligence
Robotics
Using the waste to make something useful (in short waste to wealth)
Sustainability
Virtual reality-based solutions
E-mobility
Development of smart villages.

If we see notable developments in the above areas that could be an added advantage for us.

A lot of collaborative projects like centers of excellence are being set up across the nation. These projects are being set up across the IITs and NIITS which are one of the premier educational and research institutes. This would help ignite younger minds and also pave way for numerous budding entrepreneurs.

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