MSMEs and freelancers can leverage cross-border trade to bring in foreign exchange: Report
Fintech and payments company PayPal on Thursday revealed results of a study it had conducted to understand opportunities presented to freelancers and MSMEs by exports. The company's study was conducted in light of the novel coronavirus pandemic, which has seen the growth of online shopping and improved connectivity, which has helped create ‘borderless economies', according to the company.
The California-based company's Cross Border Trade (CBT) report takes a closer look at the top five sectors and looks at the exports opportunity for small and medium businesses, which it said were at the receiving end of the downward trajectory. Meanwhile, the company says that if these companies and freelance workers optimised their cross border trade opportunities, they would be able to bring in foreign exchange as well as increase employment.
The report found that out of India's $526 billion exports markets, services accounted for 40 percent while goods accounted for 60 percent of services. Non business to business exports made up under half (46 percent) of the exports market at $240 billion — of these, services made up 71 percent and goods accounted for 29 percent.
PayPal's report looked at the top five verticals for goods – gems & Jewelry, ready-made garments, leather products, electronics, handicrafts, and found these goods made up 86 percent of the total goods that were exported. Meanwhile, the top five services verticals like software services, travel, business services & consulting, engineering services, advertising, made up 91 percent of the services that were exported.