India should treat e-commerce exports as a national imperative
₹1,000-2,000 to complete the RBI-mandated EDPMS closure, incurring a net loss. Other challenges include: a) customs clearance taking 1-6 days compared to under 24 hours in China; b) a consignment limit of $12,000 versus China’s $50,000; and c) having to write off international customer returns, which account for 15-25% of sales. To enhance India’s export competitiveness, the government must prioritize e-commerce exports as a key element of its 100-day agenda.
This requires revising the Foreign Trade Policy, eliminating EDPMS closure charges for e-commerce exports and implementing bold reforms across payment reconciliation, customs clearance, customer returns and compliance burden. Establishing rules for e-commerce export hubs and setting up 25 such hubs over the next five years are crucial steps. State governments must formulate dedicated policies, invest in infrastructure and provide financial incentives to early-stage e-commerce exporters.
Accessible credit financing, insurance, bill discounting and factoring services must be made available to such exporters. Ending the prohibition on FDI-funded e-commerce marketplaces from holding inventory would boost e-commerce exports. It would spur innovative e-commerce export models, enable e-commerce export adoption among MSMEs and engender contract manufacturing on a larger scale.
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