24th October 2024 : Streamlining
payment procedures, simplifying customs regulations, and enhancing export
policies for MSMEs were identified as critical to achieving India’s ambitious
e-commerce export targets, at a stakeholder roundtable organized by the Forum
for Internet Retailers, Sellers & Traders (FIRST India). Industry leaders
also emphasized the urgent need to establish over 100 E-commerce Export Hubs
(ECEHs) to support Indian MSMEs in overcoming challenges related to
international trade.
The event, which had officials from the Directorate
General of Foreign Trade (DGFT) and private sector representatives, recommended
several policy adjustments, including a 25% variance cap on cross-border
payments, extended timeframes for payment realization, and a more flexible
reconciliation model for exporters.
Furtherit was highlighted that these hubs would
streamline processes, ease payment and customs regulations, and enhance the
ability of sellers to navigate global markets. The establishment of ECEHs is
seen as crucial for achieving India’s ambitious target of $200-300 billion in
e-commerce exports by 2030, significantly increasing current export levels.Key
suggestions also included implementing a nine-month window for payment
realization and document submission, as well as simplifying policies for
small-value bills and re-imports, which could ease financial burdens for
MSMEs.
Speaking at the event, Mr. Moin Afaque, Joint DGFT,
said, “We invite leading industry players to collaborate with us in
developing educational content on critical topics, including logistics,
warehousing, packaging and labeling, to extend the nationwide outreach and
create a meaningful impact.” He added that the ideas shared at the
roundtable on capacity building for e-commerce exports, incentives and
technology interventions were invaluable, and would further enhance
cross-border e-commerce capabilities.
Vinod Kumar, Trustee of FIRST India and President
of India SME Forum, emphasized the importance of addressing these challenges. “E-commerce
provides an unparalleled opportunity for Indian MSMEs to expand globally.
However, we must first resolve payment and customs-related issues that are
stifling this growth. If we can simplify these processes, we can unlock the
full potential of e-commerce exports and help India achieve its cross-border
export target of $200 billion by 2030,”he said.
The government has already taken steps to boost
MSME exports through its ECEH initiative, to establish 100 such hubs to support
MSMEs by streamlining processes and reducing compliance burdens. The DGFT has
also been partnering with companies like DHL, Amazon, and Shiprocket to provide
export training and capacity building for MSMEs across over 100 districts,
helping small businesses become export-ready, with training programs focused on
logistics, warehousing, and export documentation. The roundtable concluded with
stakeholders highlighting thatwith these measures, India can significantly
increase its share of e-commerce exports, contributing to the broader goal of
$1 trillion in total exports.