Separate trade policy needed to grow e-com exports to $350 billion: GTRI
Chennai: India has the potential to increase its e-commerce exports to $350 billion by 2030. This will require focus on developing the ecosystem for e-commerce exports and framing an independent e-commerce export policy, said Global Trade Research Initiative.
Global e-commerce exports are poised to grow from $800 billion to $8 trillion by 2030, providing a significant opportunity for Indian businesses to expand their international sales.
Currently, e-commerce exports account for only $2 billion or less than 0.5 per cent of India's total goods export basket. The country must plan to export $350 billion, or about one-third of its total goods, through e-commerce by 2030, said GTRI.
This will require focus on developing the ecosystem for e-commerce exports. India's current e-commerce export provisions are a patchwork of rules framed for regular B2B exporters. This creates an enormous compliance burden on small firms, and India needs to address all such issues in one place.
The Indian government should issue a separate e-commerce export policy. E-Commerce policies in China, Korea, Japan, Vietnam, etc., have helped many firms sell globally. As the needs of the e-commerce export sector are vastly different from the regular export sector, the E-commerce Export Policy should be an independent document addressing all pain points faced by exporters. This policy should be jointly issued by the RBI, Customs, and DGFT after making necessary changes to their regulations.
The policy should include provisions for business development, easing regulatory burden, and setting up a national trade network.
India's strengths in high-demand customized products, expanding seller base, and higher profit margins per unit of export place it in a prime position to benefit from this trend.
India has a rich tradition of producing bespoke, handcrafted products that are increasingly in demand by discerning customers who value quality and uniqueness over mass-produced goods. Key product groups with high potential for export include handicrafts, jewellery, ethnic wear, decorative paintings, and Ayurveda products.
The internet, technology, and secure online payments have made exporting via e-commerce simple and safe, enabling small firms from a wide range of cities and regions to participate in international trade. Over 100,000 Indian sellers are already exporting through e-commerce, and this number is set to multiply.
Exporting through e-commerce channels can result in higher profits per unit of export, as businesses can cut out intermediaries like indenting agents, bulk buyers, and shopkeepers
