Centre Plans Big Push For E-Commerce Exports, Talks On With Amazon, Flipkart
The government, in a huge push for export in the wake of the US imposition of 50 per cent tariff, will set up special export entities tied to e-commerce platforms.
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- From: India News Bull
New Delhi:
In response to the US imposing a 50 percent tariff, the government is launching a major initiative to boost exports through specialized export entities connected to e-commerce platforms. Discussions are currently underway with global e-commerce giants including Amazon, Flipkart, as well as logistics providers like FedEx and DHL, along with local trader associations and the Reserve Bank of India.
According to documents from a Commerce ministry meeting obtained by NDTV, the initiative will begin with a trial involving select export entities. Based on the outcomes of this pilot, a broader implementation will follow.
These dedicated export entities will manage all aspects of the export process including customs procedures, compliance documentation, and logistics operations, allowing Medium and Small Enterprises (MSMEs) to concentrate on product development, quality control, and brand building.
The export organizations may receive GST refunds and duty benefits which could be shared with participating MSMEs.
This model is expected to be incorporated into the government's existing E-commerce Export Hubs scheme, establishing specialized zones for processing export shipments. By reducing barriers to entry, the government aims to encourage greater participation from small and medium-sized businesses in international e-commerce and expand India's export portfolio.
The initiative is designed to align with the government's E-Commerce Export Hubs Scheme, creating dedicated facilities for handling export shipments efficiently.
This development comes as crucial support for MSMEs, which are anticipated to face significant challenges following the implementation of US tariffs. Many of these businesses have already requested governmental assistance similar to the support provided during the Covid pandemic.
In July, US President Donald Trump announced 25 percent reciprocal tariffs that became effective on August 7. He subsequently imposed an additional 25 percent tariff in response to India's purchase of Russian oil, bringing the total to 50 percent, which took effect in August.
Industries most severely affected by these combined tariffs include gems and jewelry, textiles and apparel, carpets, handicrafts, leather and footwear sectors, which risk losing competitive pricing against similar products from China, Bangladesh and Vietnam.
There have been proposals suggesting that India should view this situation as an opportunity to develop a new export strategy and redirect exports to alternative international markets.