Harmonization of customs & banking reforms are key to boost export

Reforms in certain customs and banking rules, access to credit, and incentives at par with China will be key for India to boost its exports through e-commerce medium to USD 350 billion by 2030, think tank GTRI said on Monday.

The Global Trade Research Initiative (GTRI) report also suggested creation of separate regulations and ecosystems to support two different types of e-commerce exports - direct export and overseas warehouse models; supporting firm to open warehouses in key foreign cities; export incentives at par with physical shipments; marketing support; and creation of regional hubs for MSMEs.

"Over 60 per cent of Chinese e-commerce exports (USD 330 billion in 2023) use foreign warehouses for faster delivery. They have special rules and support systems that help their e-commerce sector grow. If we do not adopt similar measures, our e-commerce exports might only reach USD 25 billion by 2030, despite having the potential to reach USD 350 billion," GTRI Founder Ajay Srivastava said.

The global cross-border e-commerce exports are projected to grow from USD 1 trillion in 2023 to USD 8 trillion by 2030 on account of the ability of online firms to deliver overseas products to consumers within 1-2 days, matching the speed and convenience of local supplies.

India's e-commerce exports could grow from USD 5 billion to USD 350 billion by 2030, thanks to strengths in customized products, traditional crafts, and a growing base of over 100,000 sellers.

At present, the domestic sector is facing different issues and as successful e-commerce policies in China, Korea, Japan, and Vietnam have helped many firms sell globally, India too needs to publish an e-commerce export policy and these steps.

It said that Indian regulations primarily cater to the direct export model, and separate regulations need to be introduced for meeting the needs of the warehouse model which has several benefits such as over 50 per cent savings in freight, no customs delays, and faster delivery.

Warehouses can be established by the government, private sector, or e-commerce firms and efficient warehouse management including using foreign warehouses will immediately boost India's e-commerce exports, the report

"Create a dedicated green channel for e-commerce shipments across express, post, air cargo, and ocean cargo channels. This will ensure faster and more efficient clearance for e-commerce exports. On banking reforms, most banks are not geared to cater to the small packet, low-value e-commerce requiring quick and low-cost processing.

Harmonization of custom clearance is need of the hour to boost export and to match delivery timeline. If export from Ahmedabad then you can get ADC clearance even without getting the CRIA report in hand. Even if you are using first time Ahmedabad route then you need not worry about unnecessary harassment by demanding so many filled checklist but once you go for Nava Shiva port you have to provide unnecessary documents and for sure you shipment will be delayed and you will pay penalty to your buyer. There should be a single window registration on all ports and airports and there should not be any further demand of new check list or documents.

Exporters are high end customer for custom departments and banks hence rather than giving ease of business do not let them to feel tease every time. More export means our nation will be freer from foreign debt. Exporters are real hero and we should give them respect and recognition so that they do more and more export.