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E-Commerce Models suited to the Micro, Small and Medium Enterprises in India

Vol 7 , Issue 2 , July - December 2020 | Pages: 64-73 | Research Paper  

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Author Details ( * ) denotes Corresponding author

1. * M. Sarngadharan, Senior Fellow ICSSR, Faculty of Commerce, Gulati Institute of Finance and Taxation, Thiruvananthapuram, Kerala, India (

Micro, Small and Medium Enterprise (MSME) sector in India has been blooming significantly in respect of the number of units and in generating new employment, annually. The MSMEs are looking forward to an enhanced customer base and increased profits by using modern e-commerce technology. The Budget 2020 contains a long list of proposals to boost investment cycle, infrastructure development and growth of MSME sector. Of this, the most vital proposal is the provision for additional channel to promote marketing. It is made clear that the Government plans to start an e-commerce platform on the lines of other private e-commerce giants to sell products from MSMEs. Future of e-commerce in India, thus, is bright with the mobile platforms, personalization, social media analytics, and omni-channel services. In this backdrop, an attempt is made in this paper to identify the befitting e-commerce models for the MSMEs in line with the Budget proposals.


E-Commerce; MSMEs; E-Commerce model; Product revenue mode; Aggregator model.

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