Chennai: NITI Aayog, on Wednesday, highlighted the potential for India’s e-commerce exports to expand significantly if regulatory policies become more supportive. Currently standing at $2 Billion, these exports could capture a more significant portion of the $8 Trillion global B2C e-commerce market by the end of the decade. The majority of MSME exporters, with revenues around Rs one crore, could benefit from utilizing e-commerce platforms, reducing their customer acquisition costs.
Despite the potential, India’s e-commerce exports only contribute 0.5 percent of the country’s total exports and a mere 0.25 percent of the global B2C e-commerce market. “However, there is an immense potential for India to significantly expand e-commerce exports in the coming years,” said NITI Aayog.
Projections suggest that e-commerce exports could reach $350 Billion, comprising one-third of India’s total exports. However, compared to China, where MSMEs are exporting over $200 billion through e-commerce channels, India’s $2 Billion export figure indicates significant room for growth.
NITI Aayog thinks that the compliance processes are a major barrier for small and new businesses, especially regarding payment reconciliation. To address these challenges and boost e-commerce exports, the organization recommends several policy changes.
These include distinguishing between Exporter on Record (EOR) and Seller on Record (SOR), allowing flexibility in invoice value reduction, introducing annual financial reconciliation for e-commerce exporters, exempting import duties on rejects or returns, considering reconciliation exemptions for shipments up to $1000, and establishing a green channel clearance for e-commerce shipments.