Amazon India has signed a Memorandum of Understanding (MoU) with the Government of Gujarat in order to enhance the export of Micro, Small, and Medium Enterprises. On 7th September, in Gandhinagar, Kamra, the Global Trade Head of Amazon India, and Ranjit Kumar, the Commissioner of Department of Industries and Mines, signed the MoU, in the presence of Vijay Rupani, the Chief Minister. The main aim of this agreement between Amazon India and the Gujarat Government is to develop and enhance the infrastructure of India exports.
Current Export Industry of India
Over the years, the Indian export industry has developed and enhanced immensely with an earned profit of approximately US $125 billion. A wide range of goods export from India includes agricultural products, garments, leather goods, chemicals, and jewelry among many others. Due to the COVID-19 pandemic, the economy of the country dropped drastically and each business sector in India was struggling to get back in the market with a highly competitive position. With the implementation of proper and effective strategies, the business industry of India is now becoming steady and stronger, and the Indian export industry is one of them. In July 2021, with $35.2 billion, the merchandise exports from India achieved the highest record ever in Indian history. It is an increment of 34% compared to the $26.23 billion in 2019, and 47.91% compared to the $23.78 billion in 2020. As per the information released by the Ministry of Commerce, it can be observed that the Indian export industry has started to grow gradually after the first wave attack of the pandemic in 2019, and it has been expected that by the end of the FY21, the Indian export would see more growth and development
Wide impact of the agreement between Amazon India and the Gujarat Government
One of the main aims of this agreement is to facilitate the Micro, Small, and Medium Enterprises (MSME) sector of India to reach the global market. The MoU will be highly beneficial to create a high awareness regarding e-commerce B2C (Business-to-Commerce) at MSME clusters in places like Surat, Rajkot, Bharuch, Vadodara, and Ahmedabad in India. It would facilitate them to sustain more in-depth understating and knowledge regarding how to effectively and strategically take the local goods to the global market for development. With the help of the digital marketing operations of Amazon, India also would be able to establish an association with countries like UAE, Turkey, Singapore, Japan, Australia, UK, Germany, France, Brazil, Canada, and the USA. Global Trade director of Amazon India, Abhijit Kamra has stated that the Amazon Global Selling Program has enabled approximately 70, 000 exporters in India to develop $3 billion in growing exports, which has shown the consumers of the international market a wide range of ‘Made in India’ products. This program initiated by Amazon has been witnessing a tremendous positive reciprocation from the exporters of India with increasing interest in the program. He also stated that in order to remain committed to making Indian exports an empowering and easy business, Amazon has signed the MoU with the Gujarat Government to boost the e-commerce exports for India.
Amazon India already provides a wide range of goods and services all over the national market. But through this agreement, Amazon India also would be able to provide it’s ‘Made in India’ products and services not only in the national market but also in the international market. Worldwide, more than 300 million individuals utilize Amazon daily. In India, more than 100 million users have registered on Amazon India. Amazon sales offer about 168 million goods to Indian consumers. In India, Amazon Prime has 10 million users. In FY20, Amazon sales revenue in India was Rs 11,028 crore. In India, Amazon dominates the e-commerce market and contributed widely to the GDP growth of the Indian economy along with the Indian exports. Exports are significant for the economic growth of the country as exports facilitate in creating job opportunities, GDP, and infrastructure. It is significant for India to maintain a proper balance for the export-import business in order to sustain the growth momentum. Additionally, exports provide access to the global market for many corporate firms and small business owners.
This MoU agreement between Amazon India and the Government of Gujarat will enhance the export of Micro, Small, and Medium Enterprises in India widely which will directly positively impact the whole Indian export industry. It will bring more economic growth to the country because as discussed it will provide more job opportunities, GDP growth and infrastructure development, and enhancement. Additionally, it will bring more profit for the Indian export as it will open various paths for the country to access the global markets like UAE, Turkey, Singapore, Japan, Australia, UK, Germany, France, Brazil, Canada, and the USA. Therefore, it can be said that the Indian exports industry, specifically through e-commerce business, will get a huge boost and will gain wide competitive advantages and profit.