Union Budget 2024: India to set up e-commerce export hubs

India is set to set up dedicated e-commerce export hubs to boost online trade, Finance Minister Nirmala Sitharaman announced in the Union Budget. The government aims to create a streamlined regulatory and logistics environment to support the growing e-commerce sector.

The Directorate General of Foreign Trade (DGFT) is already working with the Reserve Bank of India and other ministries to implement measures to facilitate e-commerce exports. These centres are expected to offer a range of services, including export clearance, warehousing, customs clearance, returns processing and product handling.

Industry experts believe that these centers will function as bonded zones, simplifying the export and import of e-commerce goods and significantly reducing re-import. The private sector is expected to play a key role in developing and operating these facilities.

India’s e-commerce exports currently stand at a meagre $2 billion, compared to China’s $350 billion. However, the potential for growth is huge, with estimates suggesting that India’s e-commerce exports could reach $350 billion by 2030. While challenges like banking woes persist, the government’s initiative is seen as a key step towards tapping this huge opportunity.

The move is expected to create jobs, boost economic growth and strengthen India’s position as a global e-commerce player.