Ease of doing business for MSMEs: Over 30,000 regional small and medium enterprise (SME) brands in the country cater to Indian retail, compared to around 3,000 corporate brands found especially in Fast Moving Consumer Goods (FMCG) , durable consumer goods, cosmetics and other segments. , the trades body Confederation of All Indian Traders (CAIT) said on Sunday. While corporate brands cater to the demand of almost 20% of India’s population, the remaining 80% are satisfied by small and medium brands selling products in bulk, CAIT said based on a recent survey. conducted by its research branch CAIT Research & Trade. Development Company (CRTDS).
The survey was conducted among retailers operating in the segments of food grains, edible oils, kirana items, cosmetics, loungewear, ready-made garments, beauty and personal care products body parts, shoes, toys, educational games and health care.
“This reflects the reality that smaller brands dominate the consumer market despite predatory pricing and deep discounts from foreign e-commerce companies and the efforts of some FMCG companies to marginalize the distributor network,” the report said. CAIT National President, BC Bhartia, and General Secretary, Praveen Khandelwal. in a joint statement.
Corporate brands are in demand among the upper and upper tiers of the middle class due to extensive media and outdoor publicity and celebrity endorsements of the brand, Bhartia and Khandelwal added. On the other hand, brands of small and small manufacturers are sold through one-to-one contact between customers and traders, apart from word of mouth among the middle, lower middle and economically weaker sections, they said.
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Importantly, the government reinstated retailers and wholesalers into the MSME category in July last year, about four years after they exited the scope of MSMEs. According to the notification to the official journal of June 27, 2017, the retail and wholesale activities were neither manufacturing units nor service units according to the definition of the MSMED law 2008. Therefore, they did not have was able to get the old Udyog Aadhaar memorandum (known as MSME registration). ).
India is the fourth largest retail market in the world with $793 billion in 2020 and is expected to reach $1.5 trillion by 2030, according to government portal Invest India. “If the government gives the necessary supporting policies to the non-commercial sector and compels e-commerce businesses to obey the policy and the law both in letter and in spirit, the country’s retail business is called to flourish in line with the vision of Prime Minister Narendra Modi for Make in India and Atmnirbhar Bharat,” Khandelwal added.