Editorial

Digital commerce hope for MSMEs in Northeast

Even as the northeast region is making its best efforts to attract big-ticket investment for industrial growth, Micro, Small and Medium Enterprises (MSME)

Sentinel Digital Desk

Even as the northeast region is making its best efforts to attract big-ticket investment for industrial growth, Micro, Small and Medium Enterprises (MSME) have already started transforming the rural economy of the region. Located in the periphery region of the country, marketing of products and services of MSMEs of the region has always been a major challenge. The democratisation of digital commerce under the Open Network for Digital Commerce (ONDC) initiative of the Department of Promotion for Industry and Internal Trade (DPIIT) has unlocked new marketing opportunities for MSMEs in the region. ONDC is aimed at enabling every seller, MSME, merchant, farmer and consumer to mutually benefit through digital commerce. Before access to digital platforms, the MSMEs in the region were dependent on traditional media to reach out to consumers. They were also dependent on advertising agencies for advertising about their product but capital being too little not all MSMEs could explore such expensive marketing channels and continued to depend on directly reaching out to the market through sellers and traditional physical markets. Poor connectivity of the region posed a stumbling block for MSMEs in reaching out to the required number of targeted consumer base due to which many units failed to achieve commercial success and close after sustaining losses. Particularly, for MSMEs in rural areas which are primarily dependent on agricultural produce such as food processing units, connectivity posed a tougher challenge than getting raw materials and skilled workers to run the units. Rural connectivity in the region has witnessed spectacular progress over the past decade. The Pradhan Mantri Gram Sadak Yojana of the central government and various rural connectivity projects initiated by state governments have connected many isolated and remote habitations to the state and national highway network with all-weather roads. Therefore, if the MSMEs can get assured orders for the supply of their products, then units in many rural areas of the region can now not just dream of getting a bigger market but can also cater to it. The advantage of digital marketing is that MSMEs can create advertising content for their products on their own and quickly reach out to their targeted customers through digital marketing channels. They also get instant feedback from customers, based on which they can undertake required changes or improvements to cater to their requirements. With the rapid spread of the internet in the region, the digital payment ecosystem has also developed at a faster pace, immensely benefiting the MSMEs, and they are no longer dependent on the local market for their sustainability. The region draws maximum benefits from the initiatives of the Ministry of Skill Development and Entrepreneurship (MSDE) through its autonomous organizations, the National Institute for Entrepreneurship and Small Business Development (NIESBUD) and the Indian Institute of Entrepreneurship (IIE) to promote entrepreneurship amongst all sections of the society, including the rural entrepreneurs can go a long way in boosting MSME growth to the next level. Empowering Grassroots Entrepreneurs on Digital Marketing through a Capacity Building and Handholding Approach under Skill Acquisition and Knowledge Awareness for Livelihood Promotion (SANKALP) launched in 2024 to increase the understanding and knowledge of the targeted beneficiaries about the advantages of e-commerce and to provide comprehensive training and orientation is another key initiative that has great significance for MSMEs of the region. The ONDC leverages the network of Common Services Centres (CSC) to connect every village in India to the national digital market. The network of more than 4 lakh Village Level Entrepreneurs (VLEs) that runs the CSC and the ONDC has allowed rural citizens to access the vast national e-commerce network which has led to boosting entrepreneurship and rural incomes. Digital literacy plays the most crucial role in rural entrepreneurs tapping the benefits, and the states in the region focusing on it is essential to bring about the achievable transformation. The onboarding of the Farmer Producers Organisation (FPO) to the ONDC digital marketing channel has enabled FPOs to sell their produce in more than 160 cities across the country. Building awareness among MSMEs, FPOs, and Self-Help groups of the region about the vast marketing opportunities beyond the local markets through digital marketing channels will spur faster MSME growth. Another key initiative that the region can bank upon to boost MSME-led economic growth is the Trade Enablement and Marketing (TEAM) Scheme launched by the Ministry of MSME. The scheme has been designed to onboard five lakh small and medium enterprises with 50% women-owned enterprises onto ONDC for a more robust and inclusive digital commerce ecosystem in the country. Assam accounts for the largest share of MSMEs in the region and has witnessed a spectacular credit-deposit ratio growing to 66%, surpassing the Reserve Bank of India benchmark of 60%, which is attributed to a substantial increase in advances towards MSMEs. The region is on the cusp of spectacular MSME-led economic growth and transformation.