LCommerce Minister Piyush Goyal announced that the Indian government is implementing measures to empower Micro, Small, and Medium Enterprises (MSMEs) to directly access global markets through e-commerce. Initiatives include extending duty remission, relaxing payment terms, raising consignment caps, establishing export facilitating post-offices nationwide, creating e-export zones, and collaborating with online marketplaces like Amazon to support MSMEs at the district level.
Goyal emphasized that e-commerce can serve as a natural bridge between MSMEs and the global market, facilitating Indian artisans and craftsmen to become entrepreneurs. He cited India’s Foreign Trade Policy (FTP) targeting $1 trillion in merchandise exports by 2030. The new trade policy, effective from April 1, 2023, aligns with the government’s goal of a $5 trillion economy.
The minister highlighted the government’s comprehensive approach, involving various ministries and departments, including the Reserve Bank of India (RBI), to achieve common goals. Goyal released the E-commerce Export Handbook for MSMEs, prepared by the Directorate General of Foreign Trade (DGFT), aiming to be a one-stop shop for MSMEs seeking guidance on promoting exports through e-commerce.
The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme’s export benefits will be extended to e-commerce exports through post and couriers, benefitting MSMEs. The DGFT will establish an IT-enabled mechanism for this purpose, utilizing a budget of ₹15,070 crore for the fiscal year 2023-24.
Goyal asserted that this move would particularly assist remotely located artisans, promoting exports of various products such as food items, spices, handloom, footwear, gem and jewelry, handicrafts, Ayush items, pharmaceuticals, and leather goods. The government aims to enable MSMEs to benefit from $1-2 billion in annual exports through this initiative.
The government is actively collaborating with various departments and e-commerce players to conduct outreach campaigns, capacity-building programs, and signing Memoranda of Understanding (MoUs) with platforms like Amazon and Shiprocket. Discussions are ongoing with Walmart, eBay, and other players for similar capacity-building programs in different districts.
Santosh Kumar Sarangi, Director General of DGFT, highlighted collaborative efforts with departments like revenue, posts, MSME, DPIIT, and RBI to facilitate e-commerce exports through policy measures. He emphasized the government’s commitment to addressing policy issues related to foreign exchange realization and the development of e-commerce export zones to expedite export clearances.
Goyal concluded by expressing confidence in India’s potential to harness cross-border e-commerce, projecting it to reach the $2 trillion mark by 2030. The government aims to position India as a significant player in this sector, leveraging the vast potential it holds.
