The Commerce Ministry is in talks with the Reserve Bank of India and the Departments of Revenue and Posts to revisit trade-related rules and facilitate extra exports by the e-commerce route, a high official mentioned on Thursday.
While globally, cross-border trade by e-commerce is predicted to exceed $2 trillion by 2030, such exports from India presently stand at $8 billion to $10 billion. China, nevertheless, has leveraged e- commerce to export greater than $300 billion of products, Director General of Foreign Trade Santosh Kumar Sarangi mentioned.
Noting that 62 of India’s 800 districts account for 80% of products exports, Mr. Sarangi mentioned boosting e-commerce shipments from craftsmen and smaller companies throughout districts may bolster India’s total exports.
“Most of our trade laws and regulations were designed for B2B (business to business) shipment of goods… it requires a tremendous mindset change for regulators to understand the changing landscape where a supplier based in India can connect directly with the consumer outside,” he mentioned at an Asia-Pacific e-commerce Policy Summit hosted by ICRIER.
As e-commerce gross sales entail loads of return of products, which attracts loads of scrutiny in B2B trade, the ministry is easing the method for them. It can be in talks with the RBI to ease overseas alternate norms to allow longer occasions for cost realisation for e-commerce gross sales. The Departments of Post and Revenue have additionally been approached to assist ship items overseas from the hinterland and ease Customs norms, respectively, the official mentioned.
“There are projections that e-commerce exports at a global level will exceed $2 trillion by 2030. So India has to be a major player and it is in this context that we will have to ready the ecosystem to leverage India’s potential in the e-commerce space,” Mr. Sarangi summed up.
