Establish 100 ECEHs, Ease Payment&Customs Norms to BoostE-commerce Exports: Industry

24^th October 2024: Streamlining payment procedures, simplifying customs regulations, and enhancing export policies for MSMEs were identified as critical to achieving India’s ambitious e-commerce export targets, at a stakeholder roundtable organized by the Forum for Internet Retailers, Sellers & Traders (FIRST India). Industry leaders also emphasized the urgent need to establish over 100 E-commerce Export Hubs (ECEHs) to support Indian MSMEs in overcoming challenges related to international trade. 

The event, which had officials from the Directorate General of Foreign Trade (DGFT) and private sector representatives, recommended several policy adjustments, including a 25% variance cap on cross-border payments, extended timeframes for payment realization, and a more flexible reconciliation model for exporters.

Furtherit was highlighted that these hubs would streamline processes, ease payment and customs regulations, and enhance the ability of sellers to navigate global markets. The establishment of ECEHs is seen as crucial for achieving India’s ambitious target of $200-300 billion in e-commerce exports by 2030, significantly increasing current export levels.Key suggestions also included implementing a nine-month window for payment realization and document submission, as well as simplifying policies for small-value bills and re-imports, which could ease financial burdens for MSMEs. 

Speaking at the event, Mr. Moin Afaque, Joint DGFT, said, “We invite leading industry players to collaborate with us in developing educational content on critical topics, including logistics, warehousing, packaging and labeling, to extend the nationwide outreach and create a meaningful impact.” He added that the ideas shared at the roundtable on capacity building for e-commerce exports, incentives and technology interventions were invaluable, and would further enhance cross-border e-commerce capabilities.

Vinod Kumar, Trustee of FIRST India and President of India SME Forum, emphasized the importance of addressing these challenges. “E-commerce provides an unparalleled opportunity for Indian MSMEs to expand globally. However, we must first resolve payment and customs-related issues that are stifling this growth. If we can simplify these processes, we can unlock the full potential of e-commerce exports and help India achieve its cross-border export target of $200 billion by 2030,”he said.

The government has already taken steps to boost MSME exports through its ECEH initiative, to establish 100 such hubs to support MSMEs by streamlining processes and reducing compliance burdens. The DGFT has also been partnering with companies like DHL, Amazon, and Shiprocket to provide export training and capacity building for MSMEs across over 100 districts, helping small businesses become export-ready, with training programs focused on logistics, warehousing, and export documentation. The roundtable concluded with stakeholders highlighting thatwith these measures, India can significantly increase its share of e-commerce exports, contributing to the broader goal of $1 trillion in total exports.