India’s next big export success may come not from the big industrial belt of a metropolis, but from the carpet industry of Bhadohi, the brass business of Moradabad, the perfume makers of Kannauj, the textile industry of Tiruppur or even the furniture makers of a small district. The central government is continuously implementing such policies, whose objective is to directly connect small and medium enterprises (MSMEs) to the global market. In this direction, the government has recently allowed e-commerce companies with foreign investment (FDI) to run inventory-based export operations for products made in India. It is believed that this decision will create new export opportunities for thousands of small businessmen of the country.
It will be easier for small businessmen to sell goods abroad
Till now, foreign-invested e-commerce companies could not operate on the inventory-based e-commerce model in India. Under the new rule, they will be able to do this only for exporting products made in India. Its direct benefit will be that big platforms like Amazon and Flipkart will be able to purchase goods from Indian manufacturers and keep them in their warehouses and deliver them to customers in different countries of the world.
The biggest challenge faced by most businessmen in small towns is to find foreign buyers, handle international logistics and build their network abroad. This process can become much easier through e-commerce companies. With this, small entrepreneurs will not have to make huge investments separately to reach the global market.
This decision is part of the government’s larger strategy
This change related to e-commerce export is not limited to any one decision. In the last few years, the government has continuously made many reforms to increase exports. Changes have been made in the Foreign Trade Policy to promote e-commerce exports. Apart from this, the limit of Rs 10 lakh on exports through courier has been removed. New arrangements for goods returning from abroad and facilities like ‘Return to Origin’ have also been introduced. The aim of these steps is to reduce the practical difficulties of small exporters.
India has signed Free Trade Agreements (FTA) with many countries and negotiations are ongoing on many new agreements. In such a situation, the government wants that more and more Indian companies should take advantage of these opportunities and the export base of the country should expand.
Every district is being made an export hub
The Central Government has been working on the ‘Districts as Export Hubs’ program for a long time. The objective of this scheme is to identify such products of every district, which can be in demand in the international market. These include handicrafts, textiles, food processing, engineering products and traditional industries.
The government is also working towards strengthening facilities like testing labs, quality certification, packaging, logistics and export promotion at the district level. This will make it easier for small industries to meet international standards and they will be able to compete better in the global market.
UP’s ODOP model becomes an example
Uttar Pradesh’s ‘One District One Product’ (ODOP) scheme is considered to be the most successful example of this strategy. Under this scheme, traditional products like brass products of Moradabad, perfume of Kannauj, sarees of Varanasi, wooden carvings of Saharanpur and locks of Aligarh got a new identity.
The government provided help for branding, packaging, design, digital marketing and participation in trade fairs of these products. The result was that demand for many local products increased abroad and small businessmen got new markets. After the success of this model, the government wants to promote a similar strategy in other states of the country also.
Indian economy will get big benefits
Experts believe that the impact of increasing exports from small cities will not be limited to business only. This will create new employment opportunities at the local level, strengthen the manufacturing sector and improve the quality of products. To compete in the global market, industries will adopt new technology and focus on modern production processes.
Apart from this, instead of being limited to a few big cities, exports will spread to different districts of the country, which will also give impetus to regional economic development. If this strategy of the government is successful, then in the coming years many big global brands of India may be seen emerging from small towns and traditional industries. This will also strengthen the goals of ‘Make in India’ and ‘Local to Global’.
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