E-commerce giants are piggybacking on the government’s Make in India initiative to get a foothold in rural markets and expand their merchant base.
Start-ups such as Paytm, Snapdeal, Shopclues and Askme have all started various projects under the scheme. As many as 60,000 handicraft sellers and Indian small and medium enterprises (SMEs) have been brought on to these portals in the past few months. “Supporting such schemes help e-commerce companies expand their merchant base as well as capture the rural market,” said Amarjeet Singh, Partner – Tax, KPMG in India. “SMEs are making good products but funding remains a problem. E-commerce companies are solving this by helping with lending schemes.”