The Government of India has invited proposals from industry stakeholders for setting up e-commerce export hubs (ECEHs) across the country.
The initiative, announced during the recent Budget, aims to promote exports through e-commerce by providing an optimized infrastructure that supports small producers, aggregators and various stakeholders involved in cross-border trade.
The project is seen as an important step towards increasing India’s share in the global e-commerce export market.
Objectives and benefits of ECEH
The main objective of the ECEH initiative is to create an enabling environment for e-commerce exports by ensuring predictability and the shortest possible delivery times.
These centres are designed to facilitate re-imports in the event of returns or rejections and to bring together various stakeholders of cross-border e-commerce under one roof.
Initially, the government plans to set up 10-15 such centres in designated areas that will serve as hubs with favourable trading infrastructure, making it easier for small producers to reach global markets through aggregators.
Operational structure and facilities
Each ECEH will have two key physical components. The first will be a fulfillment area dedicated to packaging, labeling and storing the goods after they have been pre-selected and are awaiting a buyer.
The second component will be a customs station where goods will be cleared and prepared for shipment once a buyer has been found.
Additionally, these centers will offer warehousing facilities, customs clearance, returns processing, labeling, testing and repackaging services all under one roof to streamline the export process.
Potential impact on India’s export market
India’s current e-commerce exports are relatively low at around $5 billion, in stark contrast to China’s $300 billion.
However, there is significant potential for growth: Indian e-commerce exports are estimated to reach between $50-100 billion in the coming years.
A report by economic think tank GTRI says India’s e-commerce exports could reach $350 billion by 2030 if certain challenges, particularly those related to banking and operational costs, are addressed.
Vision and future plans of the Government
The government has set itself the goal reaching 1 trillion dollars in merchandise exports by 2030, and cross-border e-commerce is identified as a key means of achieving this goal.
The ECEH initiative is part of a broader strategy to replicate successful models seen in countries such as China, South Korea, Japan and Vietnam, where similar centres have significantly boosted exports by micro, small and medium-sized enterprises (MSMEs) and artisans.
Detailed proposals submitted by industry stakeholders will be crucial in finalizing the operational modalities, including software requirements needed to facilitate smooth and expeditious export clearances.
By setting up these centres, the government aims to not only improve the ease of doing business for small exporters but also position India as a competitive player in the global e-commerce market.
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