India to Set Up E-commerce Export Hubs in PPP Mode

The government announced the establishment of e-commerce export hubs in public-private-partnership (PPP) mode to facilitate trade and services for MSMEs and traditional artisans. These hubs aim to increase India's exports by providing regulatory and logistic frameworks. The move is expected to boost export potential significantly.

In a significant move, the Indian government announced on Tuesday the creation of e-commerce export hubs in a public-private-partnership (PPP) mode aimed at promoting exports.

Finance Minister Nirmala Sitharaman disclosed that these hubs, under an efficient regulatory and logistic framework, will consolidate trade and export-related services.

“To enable MSMEs (micro, small and medium enterprises) and traditional artisans to sell their products in international markets, e-commerce export hubs will be set up in PPP mode,” Sitharaman stated.

Commerce Secretary Sunil Barthwal mentioned that a regulatory framework to push exports through the e-commerce medium is expected by September.

Currently, India's exports via e-commerce stand at about USD 5 billion, compared to China's USD 300 billion. However, there is potential to reach USD 50-100 billion in the upcoming years.

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

Export potential includes jewelry, apparel, handicrafts, and ODOP (one district one product) goods.

The commerce ministry's arm DGFT is collaborating with the RBI and other ministries to push exports through e-commerce by simplifying various steps.

Facilities in these hubs will include export clearances, warehousing, customs clearance, returns processing, and more.

Ajay Sahai, Director General of the Federation of Indian Export Organisations, said these hubs will also help address the issue of re-imports, which constitute about 25% of e-commerce goods.

Last year, global cross-border e-commerce trade reached USD 800 billion and is projected to hit USD 2 trillion by 2030.

Economic think tank GTRI reports that India's e-commerce exports could reach USD 350 billion by 2030, though banking issues currently hinder growth.

India aims to achieve USD 1 trillion in merchandise exports by 2030, with cross-border e-commerce identified as a key driver for this goal.