Karnataka signs MoU with Amazon India to boost e-commerce and MSME sector

Bengaluru: Karnataka Government today signed a Memorandum of Understanding (MoU) with global e-commerce giant Amazon India to help drive e-commerce exports from the state.

Under the MoU, Amazon will train and onboard MSMEs from the State on Amazon Global Selling, its Exports Program, enabling them to sell their unique Made in India products globally to millions of Amazon customers across 200 plus countries and territories.

“Karnataka has a vibrant agro, textile and garment, biotech, and toys/handicraft sectors which are held together by lakhs of MSMEs. Our partnership with Amazon India will encourage our MSMEs to leverage Amazon’s global presence and showcase their products to customers across the world, Minister for Large and Medium Industries Jagadish Shettar said during the signing of the MoU.

This is also an effort to display the strength of the state’s manufacturing and innovation prowess. Our government remains committed to making Karnataka an attractive business and investment destination, he added.

Under the MoU, Amazon will conduct training, webinars, and onboarding workshops for exporters from key MSME clusters like Bellary, Mysore, Channapatna, and others. The workshops will focus on sharing knowledge and imparting training to MSMEs about B2C e-commerce exports and selling worldwide through Amazon’s 17 international marketplaces to over 300 million customers worldwide. These workshops aim to enable MSMEs with the knowledge and tools to launch their brands and grow their business in international markets through Amazon Global Selling.

“E-commerce companies like Amazon have complemented government’s efforts in not only meeting the needs of customers by safely delivering essentials but also MSMEs which moved online to grow and expand their business during the Covid pandemic,” Additional Chief Secretary, Commerce & Industries Department, Gaurav Gupta said.

Karnataka has a rich cultural and traditional heritage. The State has multiple Geographical Indications products like Bidriware, Channapatna toys, and Kinnhal craft. Mysore Silk, Udupi cotton, and Ilkal sarees are world-famous. This will go a long way in helping the livelihoods of artisans, weavers, and craftsmen from the state, Gupta added.

He said that the MSME sector contributes 29.7 percent to India’s GDP and accounts for 49.66 percent of Indian Exports and close to 45 percent of the country’s manufacturing output. It was one of those hit hardest by the COVID-19 pandemic, as supply chains disrupted across the world and trade came to an almost standstill.

Under the leadership of Prime Minister Narendra Modi, several measures were announced as part of the Aatmanirbhar Bharat package to help MSMEs survive the unfolding pandemic infusing liquidity laying the foundation of a more robust MSME sector for the long-term.
The Karnataka government has taken a slew of policy measures to aid the growth of MSME in the state. The recently passed Industrial Facilitation Act builds an MSME friendly investment climate in the State aid the ease of doing business in the state. The amended act enables MSMEs to start operations without obtaining approvals from different departments like trade licenses, building plan approvals, etc. “Self-Certification” related provisions in the approval process for new investments have also been introduced.

“Over 50 percent of sellers from Karnataka on Amazon are from tier-II cities and beyond. Our government invites Amazon to expand its footprint beyond Bengaluru to other parts of the state,” Commissioner for Industrial Development, Gunjan Krishna said.