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Development of e-commerce hub will be part of the new government’s 100-day agenda

Developing e-commerce hubs in the country to further promote Indian exports through online media is expected to find a place in the commerce ministry’s 100-day agenda for the new government, an official said.

The Commerce Ministry’s DGFT department is already working with the RBI and concerned ministries, including the Finance Ministry, on various steps to promote e-commerce exports as there are huge export opportunities in the sector.

The exercise takes on significance as ministries have been asked to draw up a 100-day plan for the new government.

The seven-phase Lok Sabha polls, the world’s largest electoral exercise, started on April 19 and counting of votes would take place on June 4.

The official said these hubs can further help promote exports through e-commerce media.

According to an industry expert, export licensing can be facilitated in such hubs. In addition, it may also have storage facilities, customs clearance, returns processing, labelling, testing and repackaging.

“It will be a kind of bonded zone that will facilitate the export and import of e-commerce cargo and to a large extent address the problem of re-imports because in e-commerce, about 25 percent of goods are re-imported. These hubs are also like export-oriented units and the private sector will have to come forward for the development of these hubs,” Federation of Indian Export Organizations (FIEO) Director General Ajay Sahai said.

Last year, cross-border e-commerce trade was approximately $800 billion and is estimated to reach $2 trillion by 2030.

Recently, Director General of Foreign Trade (DGFT) Santosh Kumar Sarangi said that there is huge potential to increase exports through e-commerce. Last year, cross-border e-commerce trade was approximately $800 billion and is estimated to reach $2 trillion by 2030.

“We need to reorient our policies to facilitate an e-commerce ecosystem and gain a bigger pie in e-commerce exports,” Sarangi said, adding that China’s e-commerce exports are about $350 billion , while Indian exports through online medium cost only $2 billion.

A report by economic think tank GTRI India’s e-commerce exports have the potential to reach $350 billion by 2030, but banking woes are hampering growth and increasing operational costs.

The Indian e-commerce industry is mainly driven by small businesses that export products valued between $25 and $1,000. Popular items include handicrafts, art, books, ready-made clothes, imitation jewellery, gemstones and jewellery, home decor, Ayurveda products and sporting goods. These niche products have found a market because of their unique artisanal values, the report said.

India has set a target of exporting $1 trillion worth of goods by 2030 and cross-border e-commerce trade has been identified as a source of achieving this goal.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)