MSMEs Go Digital: Leveraging Technology to Sustain during the Covid-19 Crisis

COVID led to a massive surge in the share of online sales of MSMEs that are integrated with e-commerceplatforms. The survey found that in 2020-21, online sales accounted for 27 per cent of total sales compared to 19 per cent in 2019-20 and barely 12 per cent in 2018-19. There was an 80 to 90 per cent increase in seller registration with some
large e-commerce companies in the second half of 2020, almost all of which were MSMEs belonging to smaller cities
and remote areas. This resonates with the overall increase of 25 per cent in India’s e-retail market, as estimated by Bain & Company.xvii Additionally, nearly 70 per cent of the total sales on e-commerce platforms are from MSMEs and the year-on-year growth in MSMEs has been to the tune of 60-70 per cent.