India to set up e-commerce export centres, seeks implementation proposals

New Delhi, August 24 (KNN) The Indian government has taken a significant step towards boosting e-commerce exports by inviting applications for setting up dedicated export centres across the country.

The initiative follows an announcement in the recent budget speech by Finance Minister Nirmala Sitharaman, drawing inspiration from similar successful models in Southeast Asian countries.

The Ministry of Commerce and Industry, through the Directorate General of Foreign Trade (DGFT), has issued a trade notification calling for detailed proposals for setting up E-Commerce Export Hubs (ECEHs).

These findings will be key to finalizing the operational arrangements and software requirements needed to streamline export clearance.

Initially, the government plans to set up 10-15 centers across the country. These designated areas will serve as centralized facilities with infrastructure conducive to cross-border e-commerce activities.

The main objectives of these centres include ensuring predictability, reducing lead times for export orders, facilitating re-import in case of returns or rejects, and integrating various stakeholders under one roof.

The initiative is a response to India’s desire to tap the growing global e-commerce market.

While countries like China, South Korea, Japan and Vietnam have seen significant growth in e-commerce exports, benefiting their small and medium enterprises and artisans in particular, India’s performance in this sector has been relatively modest.

India’s current e-commerce exports are around $5 billion, a fraction of its total merchandise exports of $450 billion. China’s e-commerce exports alone exceed $300 billion.

A report by the Global Trade Research Initiative (GTRI) suggests that India’s e-commerce exports could reach $350 billion by 2030.

However, the think tank also highlights that banking problems are hampering growth and increasing operating costs in the sector.

The establishment of these e-commerce export hubs is in line with India’s ambitious goal of achieving USD 1 trillion in merchandise exports by 2030.

The government sees cross-border e-commerce as a key tool to achieve this goal, with the potential to transform India’s export economy.

While the Ministry is evaluating the incoming proposals, the industry is awaiting further details on the implementation of this strategic initiative, which has the potential to significantly strengthen India’s position in the global e-commerce export market.

(KNN Office)