The government is currently deliberating on a proposal that could enable e-commerce enterprises with predominant foreign investment to establish their own inventory of goods intended for export from India, as articulated by Commerce and Industry Minister Piyush Goyal.
Under the prevailing regulations, foreign e-commerce entities are permitted to function solely as marketplaces within the domestic market, explicitly prohibiting them from maintaining their own stock.
This initiative is projected to augment e-commerce exports from India while safeguarding the interests of small retailers, according to the minister’s remarks.
Unlocking a $300 Billion Export Aspiration
The e-commerce export sector is a swiftly burgeoning domain in global trade. Reports indicate that the international cross-border e-commerce market is anticipated to exceed $550 billion by 2025 and soar to $2 trillion by 2034.
In contrast, India’s current e-commerce export figures hover between $4-5 billion annually. The government is set on elevating this figure to between $200 billion and $300 billion by 2030. Presently, China maintains a stronghold in the e-commerce export arena, with exports amounting to $250 billion.
Nonetheless, the recent imposition of tariffs in the United States on even modest-value e-commerce exports has cast a pall over these ambitious forecasts. India’s e-commerce companies have the potential to broaden their global footprint, thereby enhancing export capabilities.
The minister affirmed that, should such e-commerce firms wish to retain inventory for export purposes, “we have no objection to that.”
The requisite policy adjustment would not entail an extensive process; a simple clarification of existing regulations would suffice, he elaborated.
Products poised for successful export via e-commerce include handicrafts, artworks, literature, ready-made apparel, imitation jewelry, precious stones, home decor, Ayurveda products, and sporting goods.
Fostering the Ecosystem: E-commerce Export Hubs and Incentives
To bolster e-commerce exports, the government has already initiated a policy for the establishment of e-commerce export hubs. Certain companies have been designated to create these hubs in proximity to airports in Delhi, Mumbai, and Bangalore.
The E-commerce Export Hubs (ECEH) will feature facilities designed for expedited customs and security clearance on-site. Additionally, a provision for quality assurance and certification will be incorporated, along with a streamlined re-import policy.
This re-import policy will facilitate the return of e-commerce consignments and rejections without the associated payment of import duties.
The government has also broadened the scope of Remission of Duties and Taxes on Exported Products (RoDTEP) and duty drawback benefits to encompass exports conducted through e-commerce.
Source link: Financialexpress.com.
