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E-Commerce, and the Indian Retail and Manufacturing Sectors - An Empirical Analysis with a Special Focus on Organised Sector MSMEs

Author

Listed:
  • Nibha Bharti

    (Indian Institute of Foreign Trade (IIFT), New Delhi)

  • Sugandha Huria

    (Indian Institute of Foreign Trade (IIFT), New Delhi)

  • Ashley Jose

    (Indian Institute of Foreign Trade (IIFT), New Delhi)

  • Kanika Pathania

    (Indian Institute of Foreign Trade (IIFT), New Delhi)

Abstract

The sudden boom in the e-commerce sector (due to its key players) has been questioned in several economies in the world, particularly so in India. The country’s Traders associations have complained that the sector has been growing at the expense of the offline retail sector, primarily the MSMEs. In this context, this study is one of the first attempts to analytically evaluate the significance of booming online retail on India’s production economy (including both manufacturing and retail segments). The results indicate while e-commerce has assumed a significant role in positively impacting the sales of the overall retail and manufacturing sector of the country (on average) during the period 1992-2020, the same does not hold true for its MSMEs. The impact on MSMEs has been positive, though not significant – indicating the untapped potential of the MSMEs to take advantage of the growing online commerce. Similar results hold true for the overall retail and MSME retail when it comes to their GVC intensity. The findings advocate re-considering the country’s e-commerce policy, which is still in its draft stage presently.

Suggested Citation

  • Nibha Bharti & Sugandha Huria & Ashley Jose & Kanika Pathania, 2022. "E-Commerce, and the Indian Retail and Manufacturing Sectors - An Empirical Analysis with a Special Focus on Organised Sector MSMEs," Working Papers 2263, Indian Institute of Foreign Trade.
    • Handle: RePEc:ift:wpaper:2263
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    References listed on IDEAS

    as
    1. Ratchford, Brian & Soysal, Gonca & Zentner, Alejandro & Gauri, Dinesh K., 2022. "Online and offline retailing: What we know and directions for future research," Journal of Retailing, Elsevier, vol. 98(1), pages 152-177.
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    4. Lanz, Rainer & Lundquist, Kathryn & Mansio, Grégoire & Maurer, Andreas & Teh, Robert, 2018. "E-commerce and developing country-SME participation in global value chains," WTO Staff Working Papers ERSD-2018-13, World Trade Organization (WTO), Economic Research and Statistics Division.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    E-commerce; India; Retail Sector; Manufacturing Sector; MSMEs;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

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