A recent report highlights the need for measures such as easing customs procedures, robust payment settlement mechanisms, and relaxing FDI norms to bolster India’s e-commerce exports.
The report suggests allowing FDI-funded e-commerce entities to hold inventory for global sales of Indian MSME products.
India aims for USD 200-300 billion in e-commerce exports by 2030, a significant increase from current levels, requiring policy reforms in payments, customs, and logistics.
Complex customs procedures and restrictive policies are major barriers, according to the EY-ASSOCHAM report, which calls for expedited policy changes to enable MSMEs to access export markets effectively.
Recommendations include reducing payment reconciliation costs, enhancing payment realization timelines, increasing courier consignment limits, and streamlining clearance and reverse logistics.
E-commerce exports for FY2023 are estimated at USD 4-5 billion, a small fraction of India’s total merchandise exports.
Adopting flexible policies and addressing customs, payment, and logistics challenges could help achieve the ambitious e-commerce export target by FY2030.
Additional suggestions include extending export promotion incentives to e-commerce exporters under the Courier Import and Export Regulations, 2010.