Emphasizing the immense potential inherent in India’s e-commerce exports sector, Santosh Kumar Sarangi, Director General of Foreign Trade (DGFT), stated that the country’s e-commerce exports could soar to an impressive $200 billion within the next 6-7 years in the E-commerce Conference held by Federation of Indian Chambers of Commerce and Industry (FICCI) on 17th November 2023.
Speaking at the conference, Sarangi outlined a growth trajectory propelled by a diverse array of products, continual innovation, and the adaptability of Indian entrepreneurs to meet market demands with tailor-made offerings.
E-commerce exports play a crucial role in the global landscape of online businesses. With the facilitation of international transactions through digitalization, brands are increasingly venturing beyond local markets. According to the GTRI report on e-commerce exports, Global Business-to-Consumer (B2C) e-commerce exports are anticipated to surge from USD 800 billion in 2022 to an impressive USD 8 trillion by 2030, with notable acceleration observed post-pandemic.
Presently, in India, E-commerce exports constitute a modest USD 3-4 billion, accounting for a mere 0.25% of the country’s total B2C e-commerce exports in the global trade scenario. The advantages of B2C e-commerce exports for Indian Micro, Small, and Medium Enterprises (MSMEs) are evident in the form of expanded market access and direct interaction with international consumers.
This approach eliminates intermediaries, lowers transaction costs, addresses cross-border payment challenges through e-payment solutions, and enhances brand value and profit margins. Additionally, this mode of international trade fosters a level playing field for exporters in the global market by providing an inclusive platform without entry barriers.
India is primed to benefit from this trend, leveraging its strengths in high-demand customised products, growing seller base, and higher export profit margins. E-Commerce exports offer Indian sellers a global market, increased employment opportunities, direct access to end customers, risk diversification, and improved survival rates.
The inclusion of a dedicated chapter on e commerce exports in the foreign trade policy and the government setting a $200-300 billion e commerce exports target are a watershed moment in India’s ecommerce exports journey. This vision aligns with a now or never moment for India’s ecommerce exports sector, said the FICCI.
However, the realisation of this potential and emerging as a strong global ecommerce exports hub is a journey of many miles, which needs to be embarked upon jointly by the government, ecommerce platforms and sellers. The policy reforms required herein straddles across many aspects, the coming together of which will enable and empower sellers in any part of India to sell to customers in any corner of the world.
The FICCI ecommerce exporters conference is a first of its kind conference that brings together leaders from all stakeholder groups to discuss the challenges and opportunities, and pave the way forward for an enabling policy environment that makes India’s ecommerce industry a growth enabler.
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