— Trade through online business portals in India is increasing annually at 60 percent reports ET. As per an IAMAI study, Rs. 2300 crore worth of transactions took place online in India during the fiscal year 2006-07. Business is expected to touch Rs. 3000 crore in 2007-08. Of this, 70-80 percent of that will be by Small and Medium Enterprises SMEs).
Some quotes from businesses leveraging the Internet: 20 percent of fashion accessories maker Flying Fashions comes from online; Handicrafts wholesaler Shivam International receives over 1,000 genuine business enquiries online; 60 percent Mother Herbs’ business is via online portals. However, there are issues – says Dinesh Agarwal, MD of Indiamart.com: “High speed and quality Internet access is still a distant dream, especially at places where SMEs are concentrated.” Well, that’s a problem everywhere.
— SMEs are expected to invest $1.2 billion on Internet infrastructure and solutions in 2007, but $300 million since 2006, reports the Hindu. Two-thirds of PC owning small businesses, and almost all medium business are connected. Over 60 percent of current expenditure is related to Internet access. The report quotes a study by New York based US based Access Markets International Partners.