India needs separate policy for $350 bn e-com export aim by 2030: GTRI

India's e-commerce exports have the potential to grow at a faster pace than its information technology (IT) exports did in the early 2000s, it noted.

The e-commerce export provisions in India now are a patchwork over the rules framed for regular business-to-business (B2B) exporters and create an enormous compliance burden on small firms, the report said.

India's strengths in high-demand customised products, expanding seller base and higher profit margins per unit of export place it in a prime position to benefit, with global business-to-consumer (B2C) e-commerce exports estimated to grow from $800 billion to $8 trillion by 2030, the report was cited as saying by a news agency.

As the country’s current e-commerce export numbers remain far below their potential, GTRI has identified 21 action points for accelerating online exports.

E-commerce exports account for only $2 billion, less than 0.5 per cent, of the country's total goods export basket.

The report’s recommendations include a separate e-commerce export policy formulated by the Reserve Bank of India (RBI), customs and the Directorate General of Foreign Trade (DGFT) that should include provisions for business development, easing regulatory burden and setting up a national trade network.

The suggestions also include redefining responsibilities of sellers; simplifying payment reconciliation and processes; and developing business ecosystem.

Payment reconciliation is a major roadblock for third-party e-commerce exporters and the RBI guidelines for B2B exports need changes to accommodate B2C exports, the report noted.

A 25 per cent reduction cap is too restrictive for e-commerce sales that involve discounts and returns. Exporters need flexibility in keeping annual turnover, and restrictions per consignment should be removed, it said.

The report recommended raising the value cap for e-commerce exports from ₹5 lakh to ₹25 lakh to allow exporters to choose the shipment mode as per their business requirements.

A separate customs code of such e-commerce shipments should be created as well, exempting import duties on rejected items and treating reimports as duty-exempt imports in line with global practices to reduce costs and expedite the delivery of merchandise, and allowing these exporters to claim GST refunds, the report added.

Fibre2Fashion News Desk (DS)