E-commerce based start up's exports

by Amit Bhushan on Wednesday 16 September 2015, 6:31 PM | Category: International Capital Flows| View: 722 views

E-commerce based start up's exports


By: Amit Bhushan              Date: 16th Sept. 2015

With the falling merchandise exports, its high time that Indian corporates make push in other areas. Already the businesses are gaining experience in lobbying for better regulations, tying up loose end at various levels of government and creating scale-able businesses around E-commerce. Some other areas where Indian corporates have gained expertise in running telecom networks efficiently by pricing service delivery costs to the poor at manageable levels.

Given that there is slowdown in the merchandise exports markets, perhaps it's time to export services and especially e-commerce based service delivery models which are rudimentary levels in most of the emerging markets. This especially so since there is still a lot of interest in emerging markets e-commerce based start-ups, where venture funds are still ready to pour in money due to growth rates possible.

Its time software firms made tie-ups with such start-ups who may be richly valued and provided technology and consultancy support. This will help shore job growth in most emerging markets while bring in software export revenues to domestic firms. There will off-course be need for shoring up availability of bandwidth in these markets, and also ensuring that support eco-systems firms have the right capability mix. This will actually build a case for transfer of investments and skills in such firms where again Indian management talent has potential to score highly.

Availability of cheap funds ready to chase high returns sets the perfect environment, though such investors need to avoid regulatory and other surprises. The recipient country on the other hand needs to create jobs which may be drying up on account of shrinking exports and falling commodities. The rise in education, availability of power and telecom as well as improvement in infra ensures conducive conditions for rapid rise of such businesses. 

Need to create improved alternative for education, government services delivery models, corporate portal based services etc. are additional avenues for growth in demand of such services. Need to support local languages by bringing them online in a robust manner are additional concerns that may propel governments into action.To be developed further...

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