India to unveil framework for E-commerce Export Hubs in Sept

Commerce Secretary Sunil Barthwal announced that the regulatory framework to enable the establishment and operation of e-commerce export hubs will be ready by September. Strategically located near airports and ports these hubs will designed to facilitate small producers by connecting them with aggregators, who will then market and sell their products to consumers or businesses outside India.

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The regulatory framework to enable the setting up and functioning of e-commerce export hubs will be ready by September, commerce secretary Sunil Barthwal said on Tuesday. “A meeting was held with different departments concerned like revenue to discuss the framework. Even the industry representatives from areas like logistics and marketplace platforms participated in the meeting,” Barthwal said on the sidelines of an Indian Institute Foreign Trade event. The framework is part of the 100-day agenda of the department, and more meetings will be held before finalizing its details.

These e-commerce export hubs will facilitate small producers in selling their products to aggregators, who will then market and sell these products to consumers or other businesses outside India. The policy aims to create a comprehensive regulatory ecosystem for these hubs, which will be strategically located near airports and ports. Importantly, the industry will set up these hubs without any financial commitment from the government.

Key products expected to benefit from these hubs include jewelry, apparel, handicrafts, and items from the ODOP (One District One Product) initiative. Barthwal emphasized that the industry is not seeking financial assistance but rather a conducive regulatory environment, particularly in taxation and the handling of returned goods, which should not be treated as imports.

Boosting e-commerce exports will involve increasing the value cap per consignment, simplifying payment receipt rules, and allowing the re-import of returns without duties. The recent foreign trade policy increased the consignment value limit sent through couriers to Rs 10 lakh from Rs 5 lakh. Moreover, the draft of Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2024, released by the Reserve Bank of India (RBI), proposes flexibility on payments received for exports, which, if implemented, will further facilitate e-commerce exports.

The commerce ministry’s arm DGFT is collaborating with the RBI and other ministries, including finance, to promote exports through e-commerce, recognizing the significant opportunities in this sector. These hubs will facilitate export clearances and offer warehousing, customs clearance, returns processing, labeling, testing, and repackaging services.

According to estimates, the potential for e-commerce exports is projected to be between US$ 200-300 billion by 2030. Globally, e-commerce exports are expected to rise from US$ 800 billion currently to US$ 2 trillion by 2030. Currently, India’s e-commerce exports stand at approximately US$ 5 billion annually, significantly lower than China’s US$ 300 billion. Barthwal highlighted the potential for India to increase this figure to US$ 50-100 billion in the coming years.