E-Commerce Performance of Industrial Clusters in India

Abstract

The Ministry of MSME administers the Micro, Small & Medium Enterprises (MSME) Mart, while the Ministry of Commerce and Industry administers the Government E-Market (GeM). A study was conducted to understand the performance of industrial clusters in India on these portals with the objective of studying the physical and financial performance of MSME Mart and GeM for MSMEs. The methodology of this study consists of the collection of secondary data from the MSME Mart website using input variables like No. of MSMEs, Micro (Mn), Small (Sn), Medium (Dn), Total Uydam Registration (Ut), No. of MSME Clusters in India (Cn), No. of Working Enterprises in India (Un), Employment in India (En), Original Value of P & M in India (INR crores; Pc), Market Value of Fixed Assets in India (INR crores; Mc), Award of Contract in India (Ac) and output variables like Gross Output in India (INR crores; Gc), which were analysed using descriptive analysis. It was found that there is an increase in the CAGR. The Award of Contract given to MSMEs should be increased as Karnataka and West Bengal are performing well in MSME Mart. The input variables collected from GeM like No. of Orders Placed (Op), No. of Unique Products Sold (Up), No. of Total Products Sold (Ps), No. of Organizations Registered (Cumulative) on GeM (Gn), No. of Sellers/Service Providers (Cumulative; Sn), Order Value (INR crores) by State/UT’s (Os), Order Value (INR crores) by Central Organizations (Co.) and No. of MSE Sellers (Cumulative; Mn) and output variables like Order Value (INR crores; Ove) were analysed using descriptive analysis; it was found that the CAGR is increasing. A correlation analysis was conducted; the findings reveal a strong relationship between the input and output variables. The trend and regression analyses reveal increases in output and input variables. The Government of India and the concerned state governments implement the MSME Mart and GeM for MSME clusters in India to reduce the costs of production and marketing and increase profits, which allows MSMEs to compete in the domestic and international markets through ecommerce.