India plans policy shift to boost e-Commerce exports | Fusion - WeRIndia

India is exploring a significant policy change that could reshape its e-commerce export landscape.

The Ministry of Commerce and Industry has started discussions with other government departments to allow foreign e-commerce platforms with a majority overseas ownership to maintain their own inventory exclusively for export purposes.

Under current policy, foreign e-commerce firms can only function as intermediary marketplaces within India.

They are barred from owning or selling products directly in the domestic market to safeguard local retailers.

However, this proposed change focuses only on exports, ensuring that domestic trade remains unaffected.

Officials believe this move could unlock vast potential for India’s export economy.

Globally, cross-border online trade is projected to reach $551 billion by 2025, expanding to $2 trillion by 2034.

By comparison, India’s e-commerce exports currently hover around $4–5 billion a year.

The government’s goal is to increase this to $200–300 billion by 2030, competing with China’s $250 billion export dominance.

Commerce and Industry Minister Piyush Goyal has indicated that such a policy does not need an entirely new framework, just a clarification of existing guidelines.

According to him, if companies hold inventory strictly for exports, there should be no restriction.

The government has already initiated several steps to support online exporters.

It is setting up E-Commerce Export Hubs (ECEHs) near major airports in Delhi, Mumbai, and Bengaluru.

These hubs will offer faster customs processing, in-house quality certification, and a hassle-free reimport system for returned goods without additional duties.

Furthermore, export incentives such as RoDTEP (Remission of Duties and Taxes on Exported Products) and duty drawback have been extended to e-commerce shipments.

Products like handicrafts, apparel, jewellery, home décor, Ayurvedic items, books, and sports goods are seen as ideal for tapping into global demand.

If approved, the policy could position India as a major player in global digital trade, driving export growth while preserving fair play in domestic retail markets.

Image by Mohamed Hassan from Pxhere (Free for commercial use / CC0 Public Domain)

Image Published on July 12, 2018

Image Reference: https://pxhere.com/en/photo/1440159