To encourage exports from districts, the Commerce Ministry will collaborate with e-commerce companies

The Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry, Government of India is collaborating with the various e-commerce players to leverage the Districts as Export Hubs initiative and promote e-commerce exports from the country. This is a significant step towards enabling micro, small, and medium enterprises (MSMEs) and boosting e-commerce exports from the country.

In the first collaboration with different e-commerce platforms, DGFT and Amazon India have inked a memorandum of understanding (MoU).

Under the terms of this MoU, Amazon and DGFT will jointly develop capacity-building activities, training, and workshops for MSMEs in districts that the DGFT has designated as part of the District as Exports Hub initiative described in the Foreign Trade Policy 2023, in a phased manner.

The initiative aims to connect local producers with global supply chains, especially in remote and rural areas. The collaboration aims to enable exporters and MSMEs the ability to sell their "Made in India" products abroad.

This collaboration’s main objective is to use e-commerce platforms to support local manufacturers, exporters, and MSMEs to connect with potential international buyers. The collaboration aligns with the Foreign Trade Policy 2023, which highlights e-commerce as a focus area for increasing India's exports.

As part of the collaboration, several e-commerce platforms in India will identify districts to undertake various outreach and capacity-building activities in collaboration with DGFT-Regional Authorities. These initiatives will concentrate on empowering MSMEs to sell to customers worldwide and educate them about e-commerce exports. Additionally, MSMEs will be able to learn about tax advisory, digital product cataloguing, and imaging, among others during the capacity-building session. Indian entrepreneurs can build their global brands and e-commerce export businesses. For these capacity-building and handholding sessions, 20 districts have been designated under the Memorandum of Understanding with Amazon India.

Under the Districts as Export Hubs initiative, DGFT is in discussions with various e-commerce platforms, including Flipkart/Walmart, E-bay, Rivexa, Shopclues, Shiprocket, DHL Express, and others, to establish a similar kind of collaboration in other districts across the nation. By doing this, DGFT will be able to support and promote new and first-time exporters as well as other MSME firms to export from India, which will help them get closer to their goal of US$ 1 trillion in goods exports by 2030.

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