India plans to set up 50 e-commerce export hubs

The Government is planning to establish approximately 50 e-commerce export hubs over the next five years through public-private partnerships (PPPs). This initiative, planned by the Commerce and Industry Ministry, aims to enhance exports via online platforms, addressing the current low level of e-commerce exports, which are only US$ 5 billion compared to China’s US$ 300 billion. 10 of these hubs will be set up in the current financial year. The proposed hubs shall be established in cities with adequate road, shipping, and or air transport infrastructure to support e-commerce exports.

The government is especially keen on eliminating supply constraints and improving the enabling base for businesses, especially SMEs, to engage in export trade. To facilitate this, a policy on regulation of e-commerce exports is likely to be developed by next month.

This framework is intended to ease the procedures for cross-border e-commerce and ease constraints for small businesses to promote growth. The hubs will also function in a ‘plug-and-play’ manner, with the possibility of easy operationalisation and key service infrastructures such as customs clearance facilities and land acquisition.

Sanjay Kumar, a former principal commissioner of the Income Tax department, stressed the need to maintain quality of the product and to synchronize all the government departments to realize vast export possibilities. The initiative is expected to generate employment opportunities and be of advantage to MSME units and producers of consumer products including apparels and handicrafts.