India plans to build 50 e-commerce export hubs

The Commerce and Industry Ministry of India is set to establish approximately 50 e-commerce export hubs over the next five years through public-private partnerships (PPPs). This initiative 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. The government plans to set up 10 of these hubs in the current financial year, focusing on improving efficiency, reducing logistical challenges, and supporting small and medium enterprises (SMEs). Key locations are being identified across various states, including those in the northeastern region, to facilitate better access to global markets for local producers.

To ensure the success of these hubs, the government will enhance logistics, create large warehousing facilities, and streamline trade processes. The initiative is expected to benefit MSMEs and producers of consumer goods, potentially generating jobs while emphasizing the importance of product quality. A new regulatory framework aimed at simplifying cross-border trade for small businesses is also in development. With India’s e-commerce sector projected to reach a gross merchandise value of US$ 300 billion by 2030, this initiative is timely. The country’s robust internet user base, which includes around 350 million active online shoppers, further underscores the potential for significant growth in e-commerce exports.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.