DGFT, Revenue Department working to set up dedicated hub for promoting e-commerce exports

To boost India's e-commerce exports, the Directorate General of Foreign Trade (DGFT) is working with the Ministry of Revenue to set up designated e-commerce hubs across India to streamline the process of online export shipments.

The country's e-commerce exports are currently worth $2 billion, well above China's staggering $350 billion, industry sources say, and the government is aiming to close the gap by establishing a supportive e-commerce ecosystem.

“A lot of rationalisation is needed in this regard. We are working with the revenue department to set up designated e-commerce hubs so that speedy clearance of goods can be achieved,” Director General Foreign Trade Santosh Kumar Sarangi said. PTIHe said these hubs would have dedicated customs, security checkpoints and other facilities and that baggage cleared by customs would be able to move through the airport's green channel, eliminating the need for further inspection.

Sarangi said the approach mirrors best practices observed in other countries, noting that the e-commerce hubs would be built and maintained by private companies, while the government would oversee security and customs procedures.

The proposed hub will provide warehousing facilities, return processing, labelling, product testing and repackaging services besides expediting customs clearance. The public-private partnership aims to create a robust infrastructure for efficient e-commerce exports, officials said.

Ajay Sahai, secretary general of the Federation of Indian Export Organisations (FIEO), said these hubs could function similarly to bonded zones and boost e-commerce exports.

The report estimates that with a policy reorientation, India's e-commerce exports could reach $350 billion by 2030. Experts said streamlining the export process through dedicated hubs is a key step in this direction.