(MENAFN- KNN India)
New Delhi, Aug 24 (KNN) The Indian government has taken a significant step towards boosting e-commerce exports by inviting proposals to establish dedicated export hubs across the country.
This move follows Finance Minister Nirmala Sitharaman's announcement of the initiative in her recent Budget speech, drawing inspiration from similar successful models in Southeast Asian nations.
The Ministry of Commerce and Industry, through the Directorate General of Foreign Trade (DGFT), has issued a trade notice calling for detailed proposals to set up these e-commerce Export Hubs (ECEH).
These submissions will be crucial in finalising the operational modalities and software requirements necessary for streamlining export clearances.
Initially, the government plans to establish 10-15 hubs nationwide. These designated areas will serve as centralised facilities with conducive infrastructure for cross-border e-commerce activities.
The primary objectives of these hubs include ensuring predictability, minimising turnaround times for exports, facilitating easy re-imports for returns or rejects, and bringing various stakeholders under one roof.
This initiative comes as India seeks to capitalise on the growing global e-commerce market.
While countries like China, South Korea, Japan, and Vietnam have seen substantial growth in e-commerce exports, particularly benefiting their MSMEs and artisans, India's performance in this sector has been comparatively modest.
Current e-commerce exports from India stand at approximately USD 5 billion, a fraction of its total goods exports of USD 450 billion. In contrast, China's e-commerce exports alone exceed USD 300 billion.
A report by the Global Trade Research Initiative (GTRI) suggests that India's e-commerce exports have the potential to reach USD 350 billion by 2030.
However, the think tank also highlights that banking issues are impeding growth and increasing operational costs in this sector.
The establishment of these e-commerce export hubs aligns with India's ambitious target of achieving USD 1 trillion in merchandise exports by 2030.
The government views cross-border e-commerce as a key avenue to realise this goal, potentially transforming the landscape of India's export economy.
As the Ministry evaluates the incoming proposals, the industry awaits further details on the implementation of this strategic initiative, which could significantly enhance India's position in the global e-commerce export market.
(KNN Bureau)
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