Commerce Ministry plans e-commerce hubs to boost exports from India

100-day agenda roadmap: In a bid to bolster India's exports through online channels, the commerce ministry is gearing up to include the development of e-commerce hubs in its 100-day agenda roadmap for the new government, according to an official source, reported PTI.

The Directorate General of Foreign Trade (DGFT), under the commerce ministry, is collaborating with the Reserve Bank of India (RBI) and other relevant ministries to formulate strategies aimed at enhancing exports via e-commerce platforms, tapping into the immense potential this sector offers.

Given the upcoming 100-day plan for the new government, ministries are actively engaged in crafting initiatives to spur economic growth, particularly in the wake of the ongoing seven-phase Lok Sabha elections, set to conclude on June 4.

These proposed e-commerce hubs are envisioned as facilitators for export processes, offering services such as export clearances, warehousing, customs procedures, and return processing. Ajay Sahai, Director General of the Federation of Indian Export Organisations (FIEO), emphasised the importance of private sector involvement in developing these hubs.

With the cross-border e-commerce trade reaching approximately $800 billion last year and projected to soar to $2 trillion by 2030, there is significant potential for India to capitalise on this burgeoning market. DGFT Director General Santosh Kumar Sarangi highlighted the need for policy realignment to foster an enabling e-commerce ecosystem, aiming to emulate China's success in e-commerce exports.

Economic projections indicate that India's e-commerce exports could reach $350 billion by 2030, presenting a lucrative opportunity for small businesses specialising in niche products such as handicrafts, garments, jewellery, and ayurvedic goods.

As India targets $1 trillion in merchandise exports by 2030, leveraging cross-border e-commerce trade emerges as a key strategy to achieve this ambitious goal.

(with PTI inputs)