MSMEs see online sales bolstered by pandemic

By

Isabelle Crossley

Published
Mar 8, 2022

Micro, small, and medium enterprises which are integrated with e-commerce platforms saw a surge of online sales during and beyond the pandemic which has boosted revenue and increased employment opportunities. 

The pandemic’s subsequent mobility and retail restrictions led to many MSMEs turning to online retail as a way to keep their businesses afloat, according to a report by economic think tank the Indian Council for Research on International Economic Relations titled 'MSMEs Go Digital - Leveraging Technology to Sustain during the Covid-19 Crisis', the Press Trust of India reported. The MSMEs which retailed their goods on e-commerce platforms saw increases in profits, turnover, and sales and this has led to increased hiring in the sector.  
 
“The report suggests that MSMEs are increasingly embracing digital technologies, with online sales accounting for 27% of the total sales of surveyed MSMEs in 2020-21, up sharply from 19% in 2019-20 and 12% in 2018-19,” ICRIER said in a release about the report, the Press Trust of India reported. 

One area, however, where ICRIER found MSMEs were lacking was the low level of participation of women in the workforce. The report, which covered the sectors of textiles, handicrafts, toys, furniture, sports goods, and processed and preserved food, surveyed 1,537 MSME manufacturing units in 10 Indian states and was sponsored by US business Walmart.