India to Launch E-Commerce Export Framework by September 2024: Commerce Secretary

India is set to unveil a regulatory framework to enhance exports through e-commerce by September, according to Commerce Secretary Sunil Barthwal. Currently, India’s e-commerce exports stand at approximately USD 5 billion annually, a stark contrast to China’s USD 300 billion.

Barthwal highlighted the significant growth potential in this sector. A recent meeting at the commerce ministry, involving departments such as revenue, industry, logistics, and marketplace platforms, focused on developing this framework. The initiative is part of the government’s 100-day agenda.

The new e-commerce export hubs will be strategically located near airports and ports, aiming to increase exports to USD 50-100 billion in the coming years. These hubs will support small producers by connecting them with aggregators, who will then market and sell the products.

The proposed framework will cover various aspects, including export clearances, warehousing, customs, returns processing, labelling, testing, and repackaging. The industry seeks a robust regulatory ecosystem but does not require financial assistance.

Director General Ajay Sahai of the Federation of Indian Export Organisations described these hubs as bonded zones that will streamline export and import processes, addressing issues such as re-imports, which account for about 25% of e-commerce goods.

With cross-border e-commerce trade projected to grow from USD 800 billion last year to USD 2 trillion by 2030, India aims to boost its e-commerce exports to USD 350 billion by the same year, according to the GTRI economic think tank. The country has set an ambitious goal of USD 1 trillion in merchandise exports by 2030, with cross-border e-commerce being a key component of this strategy.