Govt Wants To Launch Alibaba-Type eCommerce Portal For Tier 2, 3 SMEs, Entrepreneurs: But Why?

The Government is planning to launch a domestic version of Alibaba with an aim to promote micro, small and medium enterprises (MSME) through the digital platforms.

Read on to find out what the Government has planned right here!

Government To Launch Alibaba Type E-Commerce Platform To Promote MSMEs

As per reports, the Government’s think tank, NITI Aayog is reportedly working on various mechanisms with an aim to boost the digital presence of small businesses in India. This will help small businesses in India to promote themselves to non-urban areas and outside the country as well. 

The Aayog might soon be designing a road map for a focus that will offer a universal access to e-commerce to small businesses and traders. 

 A government official that is close to the development has revealed, “Various options are being considered to encourage the online presence of small traders and businesses.”

As per the plan, suggestions will be made to solve challenges in the e-commerce platforms that get in the way of the MSMEs from being on online platforms such as Amazon, increase their business and also enter overseas markets.

One of these options is the launch of an Indian version of Alibaba, which will be backed by the government, but developed and operated by a private entity. Alibaba is a Chinese e-commerce platform specializing in e-commerce, retail, Internet, and technology.

However, as per an industry official, developing such a platform would require high end technology. He also stated that it is “highly capital-intensive and may take some time before it gets going.”

Also, the government is looking at the challenges that are faced by MSMEs, including the need for GST registration, cost competitiveness, and similar other standard related issues that affects their prospects on internal e-commerce platforms.

The official has said that these challenges will be addressed step by step. 

Industry Feels Government Should Address Existing Issues

However, the industry has said that the focus should be on addressing existing issues.

Anil Bharadwaj, secretary general of the Federation of Micro and Small & Medium Enterprises said, “The government should immediately try and iron out difficulties being faced by the industry onboarding the existing platforms.” 

The Confederation of Indian Industry, which is engaging with the government on the portal, has said that there is a requirement for a government e-marketplace to conduct B2B or B2C transactions.