Empowering India’s small businesses: How TradeTech is revolutionizing access to global markets

This article is brought to you thanks to the collaboration of The European Sting with the World Economic Forum.

Author: Akshay Ghulati, Co-founder – Strategy & Global Expansion, Shiprocket, Devansh Pathak, Strategy and Community Engagement, World Economic Forum

• Small businesses are the backbone of India’s economy, employing over 110 million people.
• India has the potential to reach export contributions of $1 trillion by 2030 through e-commerce.
• TradeTech solutions, like blockchain and artificial intelligence, are helping to simplify trade.

India’s micro, small and medium enterprises (MSMEs) form the very spine of its economic structure, employing over 110 million individuals and accounting for an impressive 45% of the country’s export volume. Celebrated for their agility, innovation, and craftsmanship, these enterprises stand at the cusp of global recognition.

Yet, a significant portion of their potential remains untapped. A McKinsey report shines a light on the possibility for these MSMEs to amplify their export contributions to an astounding $1 trillion by 2030, aligning perfectly with India’s vision to emerge as a global superpower by 2047.

In today’s era, where the boundaries of trade are virtually non-existent, scaling beyond domestic confines is not just an option but a necessity for businesses aiming for substantial growth. This is where the advent of TradeTech – with its suite of advanced technologies such as blockchain, digital twins, artificial intelligence (AI), and internet of things (IoT) – steps in to transform the traditional trade and export landscape for India’s MSMEs.

Revolutionizing cross-border trade with TradeTech

The promise of TradeTech is to replace the cumbersome and paper-laden processes of the past with seamless, secure, and efficient digital solutions. Blockchain technology, for instance, offers a revolutionary approach to trade finance, facilitating secure, transparent transactions across borders with the aid of smart contracts that automate and streamline trade processes.

Similarly, AI and big data analytics play pivotal roles in enhancing trade efficiency, optimizing supply chains, and uncovering new market opportunities through in-depth insights into customer behaviour and market trends.

DISCOVER

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E-commerce is a gateway to global markets

With the Indian e-commerce sector projected to reach $111 billion by 2024 and $200 billion by 2026, the opportunities for MSMEs to scale globally have never been more accessible. However, the journey to international markets has been fraught with challenges, including limited resources, expertise, and access.

The emergence of e-commerce enablement platforms has been a game-changer, integrating TradeTech solutions to simplify international trade. These platforms use data analytics for demand forecasting, order management, and logistics optimization, thus enabling MSMEs to establish a strong online presence and access global markets with ease.

According to Akshay Ghulati, Co-founder – Strategy & Global Expansion, Shiprocket, “Indian MSMEs are the country’s powerhouse with a significant contribution to our GDP. With their unstoppable growth as global game-changers, they are all set to bolster our export target of $1 trillion by 2030.

This translates into a massive opportunity for them to tap into a new world of customers. By equipping MSMEs with the data, logistics solutions, and seamless trade processes offered by TradeTech platforms, we can empower them to participate and thrive in this global marketplace. This isn’t simply about boosting exports; it’s about transforming ‘Made in India’ into a symbol of innovation and quality recognized worldwide.

At Shiprocket, we envision a future where Indian MSMEs lead the charge, shaping global trends and etching their mark on the world stage. It’s a future brimming with immense potential, and TradeTech is the key to unlocking it.”

India’s e-commerce vision: TradeTech as the catalyst

As India advocates for comprehensive guidelines on e-commerce at the World Trade Organization (WTO), TradeTech emerges as a critical enabler for the MSME sector’s global ambitions. The adoption of these technologies, supported by conducive regulations, has the potential to not only meet but exceed the $1 trillion e-commerce export target by 2030. This would mark a significant step towards realizing India’s superpower vision by 2047.

Harnessing the power of TradeTech

TradeTech stands not merely as a beacon of technological innovation but as a transformative force that can elevate India’s MSMEs to new heights of global success. By harnessing the power of TradeTech, India’s small businesses can navigate the complexities of international trade, gain a competitive edge, and tap into the vast potential of global markets. As we stride towards a future where India’s economic landscape is increasingly global, TradeTech will undoubtedly play a pivotal role in shaping the destiny of its MSME sector.