Enabling policies and initiatives to boost cross-border e-commerce

Authored by Som Parkash, Hon’ble Union Minister of State for Commerce and Industry, Government of India.

Despite global economic headwinds, India’s economy remains resilient and so does its exports. In 2023–24, the Indian economy is expected to grow at 6%–6.8%¹ — the fastest among major economies worldwide. India’s overall exports (merchandise and services) is estimated to have touched $770 billion in FY 2022-23, with merchandise exports having grown to $447 billion, a 6% year-on-year increase². This makes the achievement of $2 trillion in overall exports³ as targeted by the Government of India and the estimated $200–300 billion⁴ in e-commerce exports by 2030 a plausible eventuality. The new Foreign Trade Policy (FTP), conceived to provide a fillip to the country’s e-commerce exports, is geared towards making India an exports powerhouse over the coming years.

Globalization and adoption of technology had already changed the dynamics of international trade. The rise of cross-border e-commerce and a change in consumer shopping habits have opened up unprecedented vistas for small businesses and MSMEs in India to build international brands and deliver high-quality ‘Made in India’ products to customers in all parts of the world.

The rise of cross-border e-commerce and a change in consumer shopping habits have opened up unprecedented vistas for small businesses and MSMEs in India to build international brands and deliver high-quality ‘Made in India’ products to customers in all parts of the world.
Som ParkashHon’ble Union Minister of State for Commerce and Industry, Government of India

Over the next few years, the Government of India intends to increase MSMEs’ share in exports to 60%⁵. To achieve this, it is critical to enable our MSMEs, which form the backbone of our economy, to be integrated with the global e-commerce value chain and become exporters. The Government also wants to shift the nucleus of India’s exports story to its districts. Working towards this, we have decentralized exports promotion activities to boost local production and launched the Districts as Export Hubs (DEH) initiative. Our District Export Promotion Councils will work closely with industry associations, trader bodies, private companies, global e-commerce platforms, and other relevant stakeholders to promote district-led exports growth. This way, India’s export growth story will not be restricted to a few large cities, but will be equitably distributed across regions.

To help promote exports amid the global economic slowdown, the Union Budget 2023 increased allocation for exports-boosting schemes such as Refund of Duties and Taxes on Exported Products (RoDTEP) by 10% to INR 15,069 crore in 2023–24 from INR 13,699 crore in 2022–23⁶. It has also increased funds under the Market Access Initiative (MAI) Scheme by 25%. Measures to increase credit flow of INR 9,000 crore to MSMEs were introduced⁷, along with a decrease in compliance burden, improvement in ease of doing business, and support for technology adoption.

A cargo ship carrying many shipping containers

Cognizant of the significant opportunities that lie ahead of us, the Directorate General of Foreign Trade (DGFT) is continuously working to help Indian exporters transition seamlessly into the e-commerce exports market. India has so far signed 13 free trade agreements⁸ (FTAs) and six preferential pacts with its trading partners to enable better access to international markets.

While the Government strives to smoothen the pathway for exporters, e-commerce platforms are enabling Indian MSMEs and startups to expand their businesses globally. Global e-commerce platforms operating in India provide our exporters access to their international marketplaces across 200 countries and territories. E-commerce exports can be a great economic growth enabler in India and the convergence of the Government’s efforts, opportunities created by Indian and international e-commerce companies, and increasing demand for ‘Made in India’ products globally can make this a reality. This will be in line with not only the Hon’ble Prime Minister’s vision of a $5 trillion economy⁹, but also a testimony to the enormous potential of India’s MSMEs and small entrepreneurs.

Sell across the world with Amazon Global Selling

Read the Amazon Exports Digest 2023 to know more.

Read here

Ready to start exporting from India?

Read more blogs

Published on July 5th, 2023.

Sources:
Summary of the Economic Survey 2022-23. Press Information Bureau. Government of India.
2 India's overall exports projected to scale new heights, growing at 13.84 percent during FY 2022-23 over FY 2021-22 to achieve USD 770.18 billion worth of exports. Press Information Bureau. Government of India.
3 India will achieve 2 trillion export target by 2030 - Union Minister Sh. Piyush Goyal. Press Information Bureau. Government of India.
4 Union Commerce & Industry minister Piyush Goyal meets export community, discusses measures to boost exports. Press Information Bureau. Government of India.
5 Foreign trade policy 2023 announced. Press Information Bureau. Government of India.
6 India budget. Government of India.
7 ₹ 9000 Crore for revamped credit guarantee scheme to MSMEs. Press Information Bureau. Government of India.
8 FTAs. Press Information Bureau. Government of India.
9 Vision of a USD 5 trillion Indian economy. Press Information Bureau. Government of India.

Disclaimer: Whilst Amazon Seller Services Private Limited ("Amazon") has used reasonable endeavours in compiling the information provided, Amazon provides no assurance as to its accuracy, completeness or usefulness or that such information is error-free. In certain cases, the blog is provided by a third-party seller and is made available on an "as-is" basis. Amazon hereby disclaims any and all liability and assumes no responsibility whatsoever for consequences resulting from use of such information. Information provided may be changed or updated at any time, without any prior notice. You agree to use the information, at your own risk and expressly waive any and all claims, rights of action and/or remedies (under law or otherwise) that you may have against Amazon arising out of or in connection with the use of such information. Any copying, redistribution or republication of the information, or any portion thereof, without prior written consent of Amazon is strictly prohibited.

*Map not to scale. The map has been used for design and representational purpose only, it does not depict the geographical boundaries of the country. These do not conform to the external boundaries of India recognized by the Survey of India.