E-commerce platform Amazon’s global seller program has garnered $2 billion (Rs 30,000 crore) in cumulative e-commerce export sales from India since its launch in 2015, the company announced on Monday, while releasing its exports digest for 2020. The company claimed it has now set a target of $10 billion in exports from India by 2025. “It took the program three years to hit cumulative exports of $1 billion and it has grown 100% to hit the next $1 billion in less than 18 months, to cross the $2 billion milestone in cumulative exports from India,” said Amit Agarwal, senior vice president and country head of Amazon India.
There are over 60,000 Indian MSMEs that are part of the company’s global seller program, who saw a 72% growth in orders during Prime Day, and a 76% growth on orders during Black Friday, the company said. Agarwal also hoped that India’s new Foreign Trade policy helps businesses in exporting products.
“Already, there have been promising conversations with the Government on the support needed to boost e-commerce exports by simplifying and easing some cumbersome processes around compliance aspects and enabling India Post parcel tracking with foreign postal systems. We hope the new Foreign Trade Policy provides the right framework and direction to enable businesses of all sizes to use e-commerce marketplace and export their products in global markets,” he said.
Gross merchandise sales via the program saw a 47% year on year growth in 2019, Amazon claimed, while Prime enabled products saw a growth of 34% in the same time. Key product categories exported included apparel, jewellery, tea, leather items, home decor, health, and personal care.
Union Minister of the Micro, Small and Medium Enterprises Ministry, Nitin Gadkari, who was also present at the virtual launch of the digest said that the MSME sector will be a major exporter of goods from India. “The MSME sector is a major job creator and the backbone of the Indian economy, contributing over 28% to India’s GDP and about 48% to the country’s exports. They will continue to play a critical role in the country’s economic revival and help overcome the current pandemic. Exports are a key priority for the Government and we are focused on supporting the Indian MSMEs be more successful in the international markets and increasing the MSMEs’ share of exports to 60%,” he said.
However, for them to partake in exports, their technology infrastructure will have to be upgraded, he added. “There has to be special priority for upgradation of technology where the role of companies like Amazon can help to create awareness and product development. It can help to increase their turnover as well as be helpful for the Indian economy. It is a win-win for both,” Gadkari said.
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