Empower India's Stand: Essential Festive Sales Boost MSMEs

Empower India, a think-tank, advocates for not suspending online festive sales, which significantly benefit SMEs, consumers, and government's revenue. The festive season, vital for e-commerce growth, saw INR 1 lakh crore in sales in 2023, expecting further growth. They stress government's role in supporting the digital economy.

Empower India, a prominent think-tank, has voiced opposition to the suspension of online festive sales in India, arguing that such a move would be detrimental to small and medium enterprises (SMEs), consumers, and government revenues.

The festive season, spanning from Onam to Christmas, is crucial for the e-commerce sector, accounting for a significant portion of annual sales. In 2023, online festive sales generated nearly INR 1 lakh crore, with a 13% growth in gross merchandise value (GMV) over the previous year's festive period, and potential growth of at least 20% this year. Market reports suggest over 70% of Indian consumers plan to shop online this festive season, with more than half willing to spend more than last year.

K Giri, Director General of Empower India, highlighted the importance of the festive economy in boosting MSME sales through online platforms, projecting an increase in the online retail market's contribution to total retail from 8% in 2023 to 14% by 2028. He condemned calls to ban online festive sales and urged action against those attempting to suppress the e-commerce sector's growth.

The e-commerce industry in India is vital for the digital economy, fostering innovation, job creation, and business growth, particularly for MSMEs. Over $350 billion in sector growth is anticipated by 2030, necessitating support rather than hindrance from regulatory bodies.

Website: empowerindia.co.in

(With inputs from agencies.)