Boost E-Commerce Exports: Easy Customs, Payments & FDI: Rediff Moneynews

New Delhi, July 18 (PTI) Measures like easing of customs procedures, robust payment settlement mechanisms and relaxation of foreign direct investment (FDI) norms for e-commerce entities will help promote the country’s exports through the internet, a report released on Thursday said.

It has also been requested to allow FDI-funded e-commerce entities to store inventory for sale in international markets to facilitate global sale of products by Indian SMEs.

The Indian government has set a target of achieving $200-300 billion in e-commerce exports by 2030, which is part of an overall merchandise export target of $1 trillion. This requires increasing current export levels by 50-60 times, the release said.

Complicated customs procedures, problems with repatriation of payments and restrictive policies pose significant barriers, the EY-ASSOCHAM report said, adding that policy changes in payments, customs and logistics are needed to help SMEs access export markets and achieve this goal.

It was suggested to reduce the costs of payment reconciliation, shorten payment processing times, increase the limit of courier shipments and streamline customs clearance and reverse logistics processes.

According to the report, India’s e-commerce exports are estimated to be between $4 billion and $5 billion in fiscal 2023, which will be around 0.9-1.1 per cent of India’s total merchandise exports.

The report said adopting more flexible policies and addressing existing issues in customs, payments and logistics could help boost e-commerce exports and achieve the government’s target of $200-300 billion by fiscal year 2030.

“The recommendations for reforming Indian laws and regulations to achieve exponential growth in e-commerce exports include simplification of customs procedures, enabling robust payment reconciliation and settlement mechanisms, and various policy interventions,” it added.

It further recommended extension of export promotion incentives to exporters operating in the e-commerce sector under the Import and Export of Courier Services Rules, 2010.