India to Unveil E-Commerce Export Hubs Framework by September

India is set to introduce a regulatory framework to boost exports through e-commerce by September. Currently, e-commerce exports are at USD 5 billion, significantly behind China's USD 300 billion. The initiative aims to facilitate small producers and establish export hubs near airports and ports, potentially increasing exports to USD 50-100 billion.

A regulatory framework to push the country's exports through e-commerce medium is expected to be ready by September, a top government official said on Tuesday.

Commerce Secretary Sunil Barthwal noted that at present India's exports via this medium are only about USD 5 billion, compared to China's USD 300 billion annually.

He emphasized the massive potential to boost these exports, and a meeting involving key departments and industry representatives discussed the framework.

"We are working on setting up e-commerce export hubs in the country. This framework is included in our 100-day agenda," Barthwal informed reporters.

He projected that this regulatory ecosystem could increase exports to USD 50-100 billion in the coming years.

These hubs will enable small producers to sell to aggregators who will then find markets for their products.

"It will be a framework for e-commerce export hubs and regulatory ecosystem… These hubs will come up near airports and ports," he explained.

Potential products include jewelry, apparel, handicrafts, and ODOP (one district, one product) goods.

Additionally, the ministry, in collaboration with the RBI and other bodies, is working on measures to promote e-commerce exports, which have vast opportunities.

Such hubs will streamline export processes, offering facilities like warehousing, customs clearance, and repackaging, thus boosting efficiency.

According to Ajay Sahai from the Federation of Indian Export Organisations, these zones will address re-import issues, vital to e-commerce. Last year, cross-border e-commerce trade was USD 800 billion and is projected to hit USD 2 trillion by 2030.

A GTRI report indicates that India's e-commerce exports might reach USD 350 billion by 2030, but banking issues remain a challenge. India aims for a USD 1 trillion merchandise exports target by 2030, with e-commerce playing a crucial role.