E-commerce firms are attempting to break into India’s rural market in cooperation with the government’s Digital India initiative. Firms such as Flipkart, Snapdeal, Infibeam and Paytm have signed Memorandum of Understanding (MoU) contacts with the government to reach rural areas and villages.
The Ministry of Communications and Information Technology wants to connect e-commerce companies with its common service centers (CSCs) in villages. While the government has around 100,000 CSCs, it plans to set up another 90,000 by the end of March 2016. The government believes such CSC will generate employment by developing ancillary industries such as handicrafts and textiles, amongst others.
Paytm has suggested that CSCs can be used as payment banks, and also for recruiting banking executives in villages. Snapdeal is already helping khadi (hand-spun and hand-woven cloth) product makers in Uttar Pradesh state sell their products online. Infibeam has a team to train village level entrepreneurs who are already helping with helping and dispatching of online orders.
The Digital India campaign hopes to connect villages with broadband internet. Mckinsey has reported that the country’s GDP will be boosted by U.S. $550 billion, pushing the GDP to U.S. $1 trillion by 2025, if the the campaign is successful.
- See more at: http://www.india-briefing.com/news/india-market-watch-india-largest-base-tech-startups-digital-india-helps-ecommerce-rural-11466.html/#sthash.sfKJWthb.dpuf
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