The Commerce Ministry is developing a regulatory framework aimed at boosting India’s e-commerce exports, Commerce Secretary Sunil Barthwal announced on Tuesday.
This framework, set to be finalized by September, is expected to significantly enhance the global reach of India’s small businesses.
India’s e-commerce sector is largely driven by small enterprises exporting goods valued between $25 and $1,000. Popular exports include handicrafts, art, books, ready-made garments, and gems and jewellery.
According to a report by the think tank Global Trade Research Initiative (GTRI), India’s e-commerce exports could potentially soar to $350 billion by 2030. The report highlights that this sector has the capability to grow faster than India’s IT exports did in the early 2000s.
Despite this promising potential, current e-commerce export figures remain significantly lower than expected.
“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 these issues in one place,” the GTRI report stated.
To address these challenges, the report recommends that the Indian government implement a distinct e-commerce export policy. It notes that e-commerce policies in countries like China, Korea, Japan, and Vietnam have facilitated the global expansion of many firms.
The new regulatory framework is anticipated to streamline compliance requirements and provide a more cohesive structure for e-commerce exporters, thereby enabling small businesses to more effectively compete on the global stage.
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