Uttar Pradesh Accelerates E-commerce Partnerships to Globalise MSMEs — Here’s Why

Uttar Pradesh is accelerating its ecommerce push to help the micro, small and medium enterprises (MSMEs) overcome market barriers and become internationally competitive.

The MSME sector, which has over 9mn units spread across 75 districts, is being strengthened by the state government through partnerships with e-commerce majors and online marketplaces. Entrepreneurs will receive free training under the roadmap to enable them to participate in both domestic and international e-commerce with ease.

The Uttar Pradesh government has recently signed a Memorandum of Understanding (MoU) with global giant Walmart under the 'Walmart Vriddhi Supplier Development Program' to integrate MSMEs into national and global value chains.

"MSMEs form the backbone of the state’s economy, and this partnership would unlock new opportunities, expand market access and create fresh avenues for growth," Alok Kumar, additional chief secretary for infrastructure and industrial development, MSME and export promotion told Business Standard. MSMEs will get support in ecommerce processes, packaging, quality standards, certifications and market access, Kumar said, adding that the initiative would enhance the global competitiveness of Uttar Pradesh’s enterprises.

Other e-commerce majors have also been onboarded by the government through a number of initiatives, such as the One District One Product (ODOP) programme. For example, Flipkart and the state have collaborated to market ODOP products, such as Khadi, leather goods, carpets, agricultural products, pottery, etc. The platform helps women's self-help groups, startups, microbusiness owners and artisans grow through online marketplaces.

The UP Export Promotion Policy 2025-30 offers first-time exporters a one-time incentive that covers 75% of the platform listing fee, up to ₹3 lakh, with a focus on ecommerce-led exports. This effectively reduces entry barriers and makes it easier for the state's exporters to access international markets.

Uttar Pradesh plans to achieve $50bn in goods and services exports by 2030, up from $21bn in 2024.

Digital Trade Gains

Digital platforms assist MSMEs in accessing international markets by lowering traditional export barriers and facilitating direct customer contact without middlemen. Approximately 70% of online sellers in India are small enterprises, including women entrepreneurs and artisans, reported Business Standard.

According to UN Trade and Development (UNCTAD), global e-commerce sales reached almost $27trn in 2022, expanding opportunities for MSME participation.