DGFT considers review of trade rules for e-commerce exports

The Ministry of Commerce is in talks with the Reserve Bank of India and the Ministry of Revenue and Posts to review trade-related regulations and facilitate expansion of exports through e-commerce channels, a senior official said on Thursday.

Globally, cross-border trade through e-commerce is expected to exceed $2 trillion by 2030, while the value of such exports from India currently stands at $8 billion to $10 billion. . However, China exports more than $300 billion worth of goods through e-commerce, said Santosh Kumar Sarangi, Director-General of Foreign Trade.

Noting that 62 of India's 800 districts account for 80% of merchandise exports, Sarangi said increasing e-commerce shipments from artisans and small businesses across districts will strengthen exports across India. He said it was possible.

“Most of our trade laws and regulations are designed for B2B (business-to-business) shipping of goods… regulating the changing landscape in which India-based suppliers can connect directly with consumers abroad. “It takes a big mindset shift for authorities to understand,” he said. He made the remarks at the Asia-Pacific E-Commerce Policy Summit hosted by ICRIER.

The ministry is considering relaxing return procedures, as e-commerce sales involve large amounts of returns and B2B transactions are under intense scrutiny. It is also in talks with the RBI to ease foreign exchange norms to allow more time for e-commerce payments. The official said the Ministry of Posts and Telecommunications and the Ministry of Revenue have also been approached to help transport goods from the hinterland overseas and ease customs norms, respectively.

“E-commerce exports at the global level are expected to cross $2 trillion by 2030. Therefore, India needs to become a major player and in this context, it is important to explore India's potential in e-commerce. We need to prepare an ecosystem to leverage 'commercial space,''' Sarangi summed up.