India Plans 50 E-Commerce Export Hubs To Boost Global Trade

ENA Sectors 2024-08-21 13:39:12 New Delhi, Aug 21 (KNN) The Indian government is set to establish approximately 50 e-commerce export hubs over the next five years through public-private partnerships, according to sources familiar with the matter. This initiative aims to address India's current low presence in e-commerce exports, which stand at USD 5 billion compared to China's USD 300 billion, reported Livemint. The Commerce and Industry Ministry plans to launch ten of these hubs in the current financial year to accelerate merchandise exports via online platforms. A regulatory framework for e-commerce exports is expected to be finalised by next month. These export hubs are designed to enhance efficiency, reduce logistical bottlenecks, and provide infrastructure and support for businesses, particularly small and medium enterprises (SMEs), to access global markets more effectively. The government is identifying key zones for development, with plans to establish hubs in nearly every state and Union Territory, including northeastern states. The proposed hubs will require enhanced logistics, large warehousing facilities, and improved trade facilitation. They are planned for cities with strong road, shipping, and air connectivity. The initiative is expected to benefit MSME units and producers of consumer items such as apparel and handicrafts, potentially creating jobs. Sanjay Kumar, former principal commissioner of income tax, emphasised the importance of product quality and meeting buyer expectations. He also stressed the need for alignment among various government agencies to realise the significant export opportunity. The export hubs will be developed in a plug-and-play mode, designed for quick operationalisation. The government will provide land, customs clearance facilities, and necessary civil clearances. Minimum investments range from Rs 4 crore for small hubs to ten times that amount for large export hubs. The proposed regulatory framework is expected to simplify cross-border e-commerce procedures and reduce barriers for small businesses. Siva Balakrishnan, Founder & CEO, Vserve, an e-commerce firm, noted that this initiative will benefit e-commerce platforms and help small producers expand globally. According to the India Brand Equity Foundation (IBEF), India's e-commerce platforms reached a gross merchandise value of USD 60 billion in fiscal year 2023, a 22 per cent increase from the previous year. The Indian e-commerce industry is projected to reach USD 300 billion by 2030. With 936.16 million internet subscribers, including about 350 million mature online users actively engaged in transactions, India has allowed 100 per cent foreign direct investment in B2B e-commerce and under the automatic route for the marketplace model of e-commerce. (KNN Bureau) 39019 https://knnindia.co.in/news/newsdetails/sectors/india-plans-50-e-commerce-export-hubs-to-boost-global-trade 2024-08-21 13:39:12 knnindia.co.in India Plans 50 E-Commerce Export Hubs To Boost Global Trade