Boosting India’s E-commerce Exports: EY and ASSOCHAM’s Recommendations
A new report by EY in association with ASSOCHAM suggests that India can achieve USD 200-300 billion in e-commerce exports by 2030 by adopting more flexible policies and addressing existing challenges in customs, payments, and logistics.
Key Recommendations
The report, titled ‘Enabling e-commerce exports from India,’ offers several recommendations to bolster the e-commerce sector:
- Facilitating re-imports and removing the variance cap on realized payments.
- Extending the proceeds realization deadline.
- Creating clear guidelines for re-import transactions and formulating Standard Operating Procedures (SOPs) for returns.
- Extending export incentives to e-commerce exports and implementing e-commerce export hubs.
- Creating separate customs supervision codes for e-commerce exports and increasing the consignment limit for courier exports.
Current Export Growth
According to the Ministry of Commerce & Industry, India’s total exports of merchandise and services in April 2024 were estimated at USD 64.56 billion, showing a growth of 6.88% compared to April 2023.
Policy Amendments
The report also suggests amendments to the Courier Imports and Exports (Electronic Declaration and Processing) Regulations, 2010, including increasing the consignment limit of courier exports to USD 50,000 and reducing the cost of payment reconciliation for small-scale e-commerce exporters.
By implementing these recommendations, India can significantly boost its e-commerce exports and achieve the government’s ambitious targets by 2030.
Doubts Revealed
EY -: EY stands for Ernst & Young, which is a big company that helps other businesses with things like taxes, consulting, and audits.
ASSOCHAM -: ASSOCHAM stands for The Associated Chambers of Commerce and Industry of India. It’s a group that helps businesses in India by giving them advice and support.
E-commerce -: E-commerce means buying and selling things online, like when you shop on Amazon or Flipkart.
Exports -: Exports are goods or services that are made in one country and sold to people in other countries.
USD 200-300 billion -: USD 200-300 billion means a lot of money, specifically in US dollars. It’s a way to show how much India could earn by selling things online to other countries.
Customs -: Customs are the rules and checks at the border of a country to control what goods come in and go out.
Payments -: Payments refer to the money that people pay when they buy something, like when you pay for a toy online.
Logistics -: Logistics is the process of moving goods from one place to another, like how a package gets from a warehouse to your home.
Re-imports -: Re-imports are goods that were exported to another country and then brought back to the original country.
Export incentives -: Export incentives are rewards or benefits given by the government to businesses to encourage them to sell their products to other countries.
Consignment limits -: Consignment limits are the maximum amount of goods that can be sent in one shipment.
Policy amendments -: Policy amendments are changes or updates to the rules and laws to make them better or more suitable.
Small-scale exporters -: Small-scale exporters are businesses that are not very big but still sell their products to other countries.
Global practices -: Global practices are the common ways of doing things that are accepted all around the world.
