ITC has announced the full acquisition of Sresta Natural Bioproducts Private Limited (SNBPL), the maker of 24 Mantra Organic, for Rs. 472.5 crore. The brand boasts a diverse portfolio of over 100 organic staples, spices, oils, and beverages, with a strong domestic and international footprint. SNBPL’s vertically integrated supply chain supports 27,500 farmers across 1.4 lakh acres of certified organic farmland, aligning with ITC’s focus on sustainable agri-sourcing. With steady annual revenues of Rs. 320 crore, the acquisition positions ITC to capitalize on India’s Rs. 10,000 crore organic market, driven by rising demand for chemical-free food.

Simultaneously, ITC is ramping up its presence in the fast-growing natural baby care segment by acquiring the remaining 73.5% stake in Mother Sparsh for Rs. 81 crore (total investment: ~Rs. 126 crore). Since its initial investment in 2021, the digital-first brand has become a trusted name among Indian mothers, offering Ayurvedic and natural baby care products with an annual revenue run rate exceeding Rs. 110 crore. The acquisition aligns with ITC’s ‘ITC Next’ vision to build a portfolio of innovative, digitally native brands.

Both moves underscore ITC’s strategy to tap into high-growth, consumer-driven segments. While 24 Mantra Organic strengthens ITC’s packaged foods business with farm-to-fork organic sourcing, Mother Sparsh enhances its personal care division with Ayurvedic expertise.

Sameer Satpathy, ITC’s Divisional CEO (Personal Care), emphasized the company’s focus on “future-ready, consumer-centric brands,” while Himanshu, Founder & CEO of Mother Sparsh, highlighted the synergy with ITC’s institutional strengths.

With these acquisitions, ITC is not just betting on trends but building an ecosystem of brands that cater to India’s evolving preferences—for organic nutrition and natural wellness—while leveraging its distribution, innovation, and digital prowess to scale these businesses sustainably.

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Leveraging PayNearby’s extensive network of over 1.2 million outlets and Protean’s role as an ONDC technology service provider, the collaboration will bring credit services directly to local retail stores. The integration will utilize smart data modeling and frameworks such as the Account Aggregator (AA) to offer tailored credit solutions, particularly for those with thin credit files or new to credit.

Anand Kumar Bajaj, Founder and CEO of PayNearby, highlighted the initiative’s transformative potential, stated, “Our integration with Protean through ONDC will revolutionize credit access in Bharat, providing formal and accessible financing options to our retail partners and customers.”

Protean’s Managing Director and CEO, Suresh Sethi, emphasized the impact of data-sharing technologies, said, “By combining Account Aggregator and ONDC’s open network with PayNearby’s extensive reach, we aim to empower underserved borrowers with easier access to credit.”

Thampy Koshy, MD & CEO of ONDC, added, “This collaboration marks a significant step toward enhancing financial inclusion and supporting economic growth by making credit more accessible to rural and underserved populations.”

The new credit marketplace will offer loans up to Rs. 4 lakh for both salaried and self-employed individuals, with applications requiring KYC documents and bank statements. This initiative is set to bolster financial stability and growth for MSMEs and individuals in remote areas.

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Bafna also proposes reforms aimed to streamline GST registration via a Tatkal system and resolve working capital issues by unblocking ITC and enabling cross-utilization of credits. “We expect the upcoming budget to introduce crucial measures to uplift the startup segment in India. The tax neutrality on shareholding migration (Reverse Flip) will empower startups, boosting investment and economic growth.”

He adds: “Relaxing vesting periods for ESOPs post-flip and harmonizing capital gains tax rates will ease operations. The proposed Tatkal system for GST registration will speed up approvals, facilitating faster expansion. Easing GST registration compliance through a proposed Tatkal system will address lengthy wait times for approvals, allowing for faster expansion. Moreover, unblocking accumulated ITC, a significant working capital bottleneck, through proposals like selling ITC as tradable scrips, providing refunds for a stipulated period, and permitting cross-utilisation of CGST and IGST credits across group GST registrations, will enable effective use of funds for business operations.”

Introducing these reforms, Bafna believes will foster innovation and create a conducive environment for startup growth in India.

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This investment comes at a crucial time as Flipkart embarks on its next phase of digital commerce, aiming to make online shopping accessible to the most remote corners of India. This initiative aligns with the brand’s commitment to contributing to  #DigitalIndia.

Commenting on the emerging collaboration, Rajneesh Kumar, Chief Corporate Affairs Officer, Flipkart Group, posted on his LinkedIn handle, ‘‘We look forward to an impactful collaboration that will fulfill our business goals, boost innovations, drive economic growth, and contribute to #DigitalIndia. This partnership will also create new jobs as digital commerce and supply-chain infrastructure are strengthened.’’

This collaboration aims to accelerate digital commerce and economic growth in India while supporting the country’s broader digital transformation goals.

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As the global economy experiences a deceleration, it becomes crucial to comprehend the factors contributing to India’s sustained growth and its advantageous position in the current scenario. There are three major promising and encouraging trend surfacing and strengthening India’s sustained growth narrative

One such aspect is the potential of Tier 2 cities. Accounting for 14% of India’s total population, T2+ cities already contribute 46% to the GDP, offering a significant boost to the Indian economy. T2+ cities are home to a majority of our MSMEs, and these small and medium enterprises play a crucial role in propelling India’s growth, contributing approximately 30% to the GDP. A parallel force in driving growth is the Indian startup ecosystem, which boasts the third-largest number of unicorns globally. This ecosystem is actively seeking to capture the consumer base in Tier 2 cities.

The second aspect of the growth is the changing income and consumption structure driven by the shift in the demographics. The presence of a substantial portion of the population can bring about several potential benefits, especially for the FMCG sector, with high level of consumption, early adopters for new technology and trends, more digitally engaged and significantly contributing to the workforce, impacting the overall economy.

And lastly rapid digital evolution, where India is in the forefront of transformative changes across various sectors, contributing to economic growth and innovation.

Against the backdrop of a continually fluctuating macroeconomic environment, the FMCG sector in India is confronted with a range of challenges and opportunities. Nevertheless, amid these intricacies, a promising and encouraging trend will strengthen the growth narrative of the FMCG sector in India.

The FMCG Landscape

According to NielsenIQ’s FMCG Retail Measurement Service (RMS), for 12 months ending Sep’23 (MAT Sep’23), the FMCG industry (FMCG + Non-alcoholic Beverages) in India is valued at Rs 6,51,375 cr, growing at a pace of 10.7%. This growth is largely consumption driven across the market.

The report further reveals that volume growth for the quarter is 8% higher than same period last year (i.e Q32022) NIQ, the world’s leading consumer intelligence company attributes the robust expansion of FMCG sector to increased consumption across the country.

Rural markets showing signs of recovery

Rural markets are showing signs of recovery, with consumption gradually picking up, while Urban market is growing faster and maintaining a stable rate of consumption growth. It is also observed, from a retail universe of about 11.5 million outlets across India, 42% of these stores spread in urban areas have seen an increased penetration while rural markets that account for the rest of the 58% retail stores had a slower growth.

Inflationary pressures and rising prices of essential goods along with uneven rainfall had impacted Rural growth and consumption. A recovery in rural areas is critical for FMCG companies, as it contributes to around 37% of the total FMCG sales. A thriving rural economy is also good for FMCG companies as the possibility of improving overall FMCG penetration grows.

Sustained and rapid growth for Modern Trade channel

Modern Trade is witnessing robust growth. The channel faced significant challenges during the pandemic but has experienced accelerated growth following the relaxation of pandemic restrictions and threats. For MAT Sept’ 23, the channel posted a growth of 22% over the same period last year, 2X faster than the growth from Traditional Trade channel.  The accelerated growth is not merely a result of a low base; rather, it is fueled by consumers reverting to pre-pandemic habits. Additionally, the consistent expansion of Modern Trade chains into new and emerging markets is a signifi cant driver of this rapid growth.

This growth in Modern Trade is largely driven by the non-top 8 metros. These metros have posted a growth of 28.5% for the period MAT Sept’23 over LY, while Top 8 Metros posted 16.8% for the same period.

This is also due to the rise of the regional Modern Trade chains growing faster and stronger than the National chains and expanding rapidly. Several factors contribute to the competitive edge of these regional players. They excel in focusing on the regional market and tailoring their offerings to meet the specific needs of local consumers throughout the seasons. Emphasizing private labels across various categories not only enhances their margins and bottom line but also positions them advantageously. Furthermore, owning their store properties rather than being situated in a mall or renting space provides an additional benefit.

E-commerce fueling rapid growth

Finally, e-commerce, the shift in consumer behavior post pandemic towards online shopping has been a major catalyst for the accelerated growth of e-commerce in FMCG. Convenience, time-saving, and the availability of a diverse range of products contribute to this changing trend. As more consumers embrace online shopping, especially for everyday products, the FMCG sector will experience a rapid transformation. This rapid growth in e-commerce FMCG is largely driven by Metro markets, while non metros are small but are growing gradually.

As per NielsenIQ E-Commerce Measurement Service (EMS), e-commerce share within the total trade in All India Metros (TC 1 towns) is 5.24% for MAT Sept’23, gained by 1.4% over same period last year.

What is driving consumers’ choice and spending intention?

Prolonged inflationary pressures have shaped calculated spending, as consumers evolve their habits aligned to recent inflation deceleration. But the compounding effects of years of disruption continue to keep consumers bracing for what’s ahead. While FMCG prices continued to rise in double digit in several countries, India was in single digits. Thus, across the globe, it is no surprise that rising food prices remained top of mind concern for consumers. India was no different as the Indian consumer too recorded this as a top concern, as seen in the Fig no. 4, 21% of consumers quoted “Rising food prices” as a top concern followed by “Global warming/environment” and “Increased housing cost”.

However, besides the food price rise, increasing utilities and economic downturn plagued the consumers globally while for Indian consumers it’s environment and housing costs that also propped up as sore issues. COVID-19 still lurks in India as one of the top 10 concerns while globally another concern that emerged was ability to provide basics for family.

Consumers are coping despite harsh realities persisting, with 43% of global consumers believing they will be better off as per the Midyear Consumer Outlook 2023 by NIQ. Indian consumers were far more optimistic about their financial situation with 79% believing they will be better off. Multiple consumer data points paint a picture of recovery and optimism. 21% of Indian respondents reported that they experienced job or income loss but feel they are back on track. Part of that confidence might be attributed to the lower rate of unemployment, both current and forecast, and even though we are experiencing tough economic conditions the silver lining is jobs opening up.

 Regardless of the upbeat outlook, 90% of consumers are employing multiple strategies to manage their spending and this is unlikely to change in the short-term. Budgeting and cutting back on discretionary spending are preferred approaches to manage finances. Therefore, innovation will continue to be important, regardless of cost pressures. Retailers could benefit from traffic-generating offers in key categories, while manufacturers could target dis-loyal and highly promiscuous brand shoppers with differentiated offers.

How are consumers managing their spending for the next 12 months?

Indian consumers have positive intentions on spending, but on key essential segment like Education, Savings/ Investment and Groceries as compared to the global consumers, who intend to prioritize on Grocery and In-home spending. In-home priorities prevail across the next 12 months as consumers continue to focus on the basics and extend coping behavior that dominated the last 3 years. There is an expectation that necessities will take up a bigger part of wallet spend such as education, groceries, savings/ investments, health care, financial services and utilities and therefore plan to spend less on OOH, salon and grooming, holidays, appliances, and similar discretionary type spending.  Beyond this high-level strategy of redirected spend, consumers are conscious of their spending and intend to seek out value as often as possible.

Consumers adopt multiple strategies to manage FMCG spendings.

Consumers are prioritizing their spending for the coming months as infl ation is still riding high for FMCG. They are also adopting various ways and strategies to manage their wallet when it comes to daily essentials, especially FMCG. Consumers are opting for a wide range of strategies to manage their grocery spending, ranging from shopping online to get better deals, to using digital technologies, monitoring the cost of overall basket, and even using loyalty points to manage spending. If we scroll over the list of strategies, most of these are fueling the emerging trends in retail.

Health needs, important to all

While health needs are universally significant, it’s crucial to tailor approaches for different markets. In the context of India, the hierarchy of top health concerns comprises environmental factors, physical health, sleep quality, emotional well-being, and dietary considerations, which diverges from the priorities observed in most other APAC markets, where physical health typically assumes precedence, followed by considerations related to sleep.

A trend-spotting survey conducted by NielsenIQ BASES has also identified the rise of Natural, Immunity, Holistic Wellness, and Sustainability as the prominent emerging consumer trends. Furthermore, when delving deeper into the realm of food trends, it becomes evident that consumers are showing an increasing preference for Food & Beverages that claim to be rich in nutrients and healthy ingredients or that claim to be healthier alternatives.

Examining the current brands available in the market that use healthy ingredients as a value proposition, we observe that these brands hold approximately 10% of the share in the Traditional Trade market. In the Modern Trade channel, the same brands command around 20% share and are experiencing robust double-digit growth.

What are consumers seeking in their Brands?

Now when it comes to consumable goods, exclusion of bad things (low sugar, low calories) is still among the most important factors in innovation. However, consumers seek more than that now. They’re willing to try new things if they are affordable when it comes to food but also with good quality ingredients.

For example, for things which are part of your daily basket such as Snacking and Confectionery, the idea of convenience needs to be there. These are more impulse and indulgent purchases; hence these factors matter. However, low calories, healthier ingredients, low sugar are the top attributes.

How to outperform in 2024 and beyond

In preparing for the journey ahead, it’s crucial to evaluate the forthcoming factors that will drive growth, maintain relevance, and foster imaginative thinking

• ADAPT to inflationary reality. Executing effective and consistent price management strategies is essential for preserving profitability during prolonged periods of inflation. Careful monitoring of consumer optimism becomes paramount, particularly in tandem with the impact of inflationary pressures and shifts in employment dynamics. It is imperative to align your brand seamlessly with consumers’ deeply ingrained habits, focusing on their judicious spending and saving strategies
• RESONATE with the consumer: Examining the economic segmentation of NIQ’s consumers to assess their “financial condition and future outlook” reveals a market polarization, with 46% of Indian consumers expressing a sense of vulnerability, while 54% adopting a cautious yet optimistic stance. This suggests a divergence in consumer spending, influenced by economic conditions. Observable changes in price tier dynamics highlight the continued significance of price as the primary factor in purchasing decisions. Therefore, industry players must acknowledge that private labels and local or regional brands will play a crucial role in the dynamics of the grocery market. Formulate strategies for coexistence rather than relying solely on price competition and differentiation, innovation, and carving out a unique space distinct from being perceived solely as a “cheaper alternative”.
• FOCUS on the “Healthy” proposition: Consumers are displaying a growing inclination towards seeking Food & Beverages products with reduced negative attributes, all while considering both the financial and physical benefits. This entails a profound consideration for addressing specific concerns, including the minimization of negative attributes associated with products. To meet and exceed these evolving expectations, it becomes imperative for businesses to infuse innovation into their offerings, ensuring that they resonate with the intricacies of individual consumer needs while simultaneously delivering holistic benefits that transcend the boundaries of financial and physical realms.
• BUILD a robust online strategy: Driven by the imperative to align with changing consumer preferences, leveraging the growth of e-commerce, and staying competitive in a digital-first business environment is crucial. It is a strategic imperative for FMCG brands to not only meet current consumer expectations but also future proof, as technology continues to shape consumer preferences and behaviors. FMCG companies and retailers leveraging digital platforms are poised for continued success in this rapidly changing market.

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To spread its wings in the Indian domain and to create a link between Indian manufacturers and the demands of Indian goods all across the globe, the brand has organized a Growth Summit. This summit serves as a collaborative platform bringing together MSMEs, manufacturers, and small retailers, to catalyze exports from India.

Walmart’s vision is to facilitate the sourcing of $10 billion worth of goods annually by 2027, thereby fostering economic growth and international trade partnerships with India. 

The entrepreneurial spirit runs deep in the veins of every Indian. Every Indian dreams of owning their own business. The Make-in-India initiative acts as a beacon, amplifying the already existing passion for embarking on this entrepreneurial journey that resides in the heart of every Indian.

Walmart, a global retail leader rooted in the US, recognizes this passion of Indian manufacturers and graduates, paving a pathway for them to become integral parts of the retail journey through their Growth Summit held in New Delhi.

The retailer which has been invested in India for over 2 decades, has brought together its Indian partners, Flipkart and PhonePe, suppliers, and supply chain innovators to share the commitment to boost India’s economy and become a leading supplier of Indian goods on the global stage. 

Walmart’s mission is to accelerate its exports in India across different product categories such as food, consumables, health and wellness, general merchandise, apparel, shoes, home textiles, and toys, sourcing $10 billion of goods each year by 2027.

‘‘We’ve made investments in Flipkart, PhonePe, Myntra, and Ninja Cart. We’re committed to helping India’s economy grow, which is on track to hit $ 4 trillion’’, says Kathryn McLay, President and CEO, Walmart International. 

While the target may appear zealous, Walmart’s faith in India’s potential, coupled with the initiatives undertaken by the Government of India to streamline Foreign Direct Investment (FDI) and boost trade, can transform this distant dream into reality.

Elevating people and communities 

As described by CEO Doug McMillon, Walmart is a people-led, tech-powered Omni channel retailer dedicated to helping people save money and live better. The brand is committed to its 2.1 million associates that make the difference. 

‘‘As a company, our mission encompasses fostering a positive and a healthy culture, offering career advancement opportunities to enable everyone to realize their full potential, and ensuring that every individual feels a sense of belonging within our organization. We provide a pathway to success, facilitating growth and development for all. While our commitment to people remains paramount, technology plays a pivotal role in our operations. We have evolved into a true omnichannel retailer, seamlessly integrating our human capital with technology to cater to the diverse needs and preferences of our customers.’’ says McMillon. 

As part of its business philosophy, Walmart has extended its reach into the Indian market to source distinctive, artisanal, and high-quality Indian goods at affordable prices for its customer base. To enhance its supply chain logistics in India, the company has introduced innovative initiatives aimed at bolstering Indian manufacturing industries and MSMEs to meet its demands. 

Walmart is committed to offering essential items to its customers at affordable prices, striving to make a positive difference in people’s lives by helping them save money and improve their quality of life. ‘‘Our strategy is simple. It’s to help people save money and enhance their quality of life. We want to give them value for their money, we save their time and we do our part to strengthen their communities and planet, ’’ says Doug.

Empowering MSMEs in India

In order to strengthen the MSMEs in India, and to spread its wing in the Indian domain, Walmart is creating a link between the Indian manufacturers and the demands of Indian goods all across the globe. The Walmart Foundation has introduced a supplier development program, ‘Walmart Vriddhi’ in India to empower more than 50,000 MSMEs over five years. 

Launched in December 2019, the program provides free training, mentoring, and digital tools to help businesses grow, scale, and integrate into domestic supply chains. The Walmart program, together with program partner, Swasti, offers local suppliers the chance to access training and gain business advice while tapping into Flipkart’s platform expertise.  

The digital training provided to MSMEs covers many aspects of business management such as finance, marketing, workforce management, and environmental sustainability. This empowers entrepreneurs to establish their business models and contribute to employment opportunities at local level.

‘‘With the help of this program, graduates or newly budding entrepreneurs can have access to become sellers at our marketplaces. Some graduates might even have the opportunity to go on and become part of our export-ready program. Our focus is to recruit and train new suppliers to fulfill our purchase orders around the world. These orders often lead to the creation of new jobs. It also allows our suppliers to invest back in their local communities. We’ve seen this with partners like Shahi Exports. They continue to invest in manufacturing capabilities and community programs that empower women in their workforce,’’ says Andrea Albright, Executive Vice President of sourcing, at Walmart

Through this program, small and medium-sized business enterprises found opportunities to reach more customers. Moreover, the mentors who volunteer their time in this program help the MSMEs to achieve their goals. They are some of the brightest minds in India. ‘‘When we mix the expertise of our mentors with the passion of these MSMEs, the sky is the limit. It’s all about driving growth and tapping into the wonderful entrepreneurial spirit of Indian business, ’’ claims Kathryn. Doug further gave an example of an entrepreneur named Sundar whose business grew by 212% selling spices across India.

Apart from this program, Walmart also offers a variety of career paths from corporate to technology and so many more. At the end of the day, what makes the ecosystem whole is its customers. ‘‘Customers are at the center of everything that we do. Each step helps us to deliver on our company purpose to help save people money so they can live a better life. I’m so proud of the work that our teams are doing to support strong local businesses, companies, and communities. Our future is bright and I can’t wait to see what comes out of this. When companies like yours are successful, India grows,’’ says Albright. 

All these measures have strengthened India’s ties with Walmart and have provided huge opportunities to the MSMEs, small retailers, and Kirana owners to not only upskill themselves but also to take their products to the global stage, expanding their business and boosting the economic progress of the country. The Growth Summit has been the driving vehicle for many local manufacturers and retailers who aspire to join Walmart and expand their business. The summit included some of the top leaders of the retail and e-commerce platform who provided a deep insight into various factors that surged the economic growth of India, fulfilling its ambition to turn into a trillion-dollar economy. 

 Fueling India’s Economic Growth

India’s manufacturing capacity is broadening and scaling day by day. The business ecosystem and infrastructure are significant parts of it. Today the nation stands on the global stage of business and innovation. India is trying to achieve the goal of a trillion-dollar economy in a compressed timeline. 

But how will India be able to achieve this massive goal in such a short period? The answer is not that complicated. India is driving a public-private partnership bridged together by the digital infrastructure that can create immense societal impact. ‘‘There are 2 important aspects of commerce in India’’, says Kalyan Krishnamurthy, Group CEO, of Flipkart. ‘‘One is access and another is affordability. Access again can be broken down into digital access and physical access.’’

Digital access is expanding across the length and breadth of the country. Different types of users speak different languages with different income segments and live in all kinds of places where there are different types of networks. How do you make sure that they get a good experience while opening an e-commerce site? That is digital access. Physical access is how we make sure we get the product to the doorstep of the consumers wherever they live. 

There are multiple aspects to that. One is of course cost, another is reach and the third is the right type of service level. 

COST: One of the biggest challenges for access alone is to solve the cost structure. India in general is a low-ticket price market. Now for e-commerce or even for physical stores to deliver across the country with that kind of a cost structure and with that kind of logistics complexity is one of the greatest challenges that can enable e-commerce in the future if we can provide a solution to this challenge. So if the e-commerce and physical platform can lower their cost structure, then it will further increase its penetration. So the cost of doing business is directly related to logistics.

REACH: About two or three decades back, consumers did not have choices in Tier 2, or Tier 3 cities. If they even wanted to buy a simple branded product, they would take a train or a bus, go to the nearest big city, and look for a shopping mall. Today, they have access to millions of products from SMEs, and the entire consumerism is enabled by SMEs in India and they will continue to do that. They are the backbone of this consumerism that is going on and will continue to be in the coming years. ‘‘We have more than 500 million users on our platform Flipkart today. We have 1.4 million SMEs listed on the platform, and 250 million products today. The product listing is how much we offer today in Tier 2, Tier 3 cities,’’ affirms Kalyan.

SERVICE LEVEL:  Today’s India is not just promoting the manufacturing of products, but manufacturing and selling of quality products. The government is trying to create an ecosystem where there are good startups and quality manufacturing processes. ‘‘We want to create incubators in India in line with the vision of having quality manufacturing processes and products. If we have good incubators, we will have good startups. If we have good startups, then we will have good manufacturing processes. If we have good manufacturing processes, then the quality of products will be good and cost-effective,’’ says Joint Secretary Sanjiv at the Department for the Promotion of Industry and Internal Trade, Government of India. 

Diving into Digital Penetration

Apart from accessibility, innovation using technology is the only way India can reach a trillion-dollar economy. India has better mobile and digital penetration than most of the world. Even a Rikshawala or a street vendor is using digital means in India. Digital infrastructure is the way towards prosperity. Aadhar as the digital identity for every Indian, to UPI- the United Payments Interface, is a shining example of how we can bring policymakers, regulators, and private parties together to create a phenomenal impact. 

‘‘India is doing more than 10 billion digital transactions on a monthly basis. Digitization through payments is a path toward the formalization of the economy. Before UPI, the broader economy in India was considered to be informal. There was earlier large number of small businesses, micro-businesses, which were not regarded as part of the formal economy, but with the launch of UPI payments, and with the digitization of transactions, a large number of businesses, millions in-fact are being brought into the formal economy at a very rapid pace,’’ says Rahul Chari, Founder and CTO of PhonePe.

What does this mean for the economy?  Through digital payments, a cash flow record is created and these records are being recognized by banks opening up credits and flow-based lending, which helps these businesses to expand their footprint, increase their production, and get noticed not just by retailers but by the largest retailer across the world like Walmart. Thus, digitization is formalizing the economy which is creating a tsunami effect of positive disruption. 

With the newfound confidence, MSMEs can grow their businesses and invest in technologies that are bringing these small and medium sellers to the world stage. But digital penetration is not the only force that is aiding these MSMEs, the government of India plays a crucial role in the expansion and growth of the MSMEs. Simplification of tax, better incentives schemes, and evolving or amending policies as per the new India’s requirement are very crucial aspects for trailblazing MSMEs in India. 

Role of the Govt

The role of the Government of India, as the honorable PM always says, is not to do business but to be an enabler, quotes JS Sanjiv. ‘‘This is the new India, and the government wants to be accessible to everyone. Whether it is a big global retailer or a small MSME retailer from a Tier 2 Tier 3 city, the govt is responsive to their needs.’’

The govt is adapting to the soup-to-nuts approach to promote the manufacturers in India. ‘‘The whole emphasis is that whenever industry comes with an issue, government is open. We are doing extensive stakeholder consultations and considering the perspectives of all individuals. We are trying to change the law as it evolves, and tweak polices according to the demands of new India,’’ asserts Sanjiv. 

Govt is opening up platforms like ONDC to expand e-commerce trade to not just towns and cities but at the grassroots level to the villages and districts to turn the vision of digital India into reality. Apart from that, the govt has tweaked many policies and simplified the taxation process to promote ease of doing business in India. We have removed almost 1500 archaic rules and tweaked few export and import rules to enhance trade in India,’’ says Sanjiv. Additionally, the government has come up with PLI schemes to promote trade in India. 

Citing one such example, Sanjiv said, ‘‘Previously, there was no provision for importing products required for research-based projects. However, recognizing the importance of fostering manufacturing and innovation, the Indian government has implemented policies to facilitate the importation of such items.’’He further adds, ‘‘We aim to adapt and amend our laws or policies as it develops, ensuring that it remains relevant and responsive to evolving needs and circumstances.’’

Walmart’s Triumph with MSME Partnerships

Walmart is acquainted with export-ready suppliers, innovators, and entrepreneurs representing 24 states and union territories in the Growth Summit where these manufacturers and startups participated in pitch meetings featuring products made, grown, or assembled in India.

Various new startup brands exhibited their products under the guidance of Walmart experts showcasing their triumphs and growth aided by Walmart. Some of these brands are: 

Welspun, a textile company in India, which started its journey by selling their towels in Sam’s Club. They are today known for their quality and great pricing thus fulfilling the demand of Walmart’s customer base in terms of quality and affordability. 

The new cruiser-style bicycles by the brand Concord under Hero Ecotech are a special and popular item in Walmart. Ambassador Taranjit Singh Sandhu once checked out these bikes in one of their stores, claims Dough. 

Mrs Bector’s Foods, an Indian supplier of cookies is another example. They made delicious Danish butter cookies which are very popular in the holiday season overseas. 

All these examples clearly show Walmart’s commitment to the Indian market. The company has now cumulatively sourced more than $30 billion in products across a range of categories. Walmart Vriddhi training and mentorship program has empowered over 50,000 MSMEs and Walmart is very optimistic about its future ties with India, thus envisioning a $10 billion export goal with India.

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