India’s e-commerce exports face a critical challenge in reaching their potential $350 billion target by 2030 unless significant reforms are made in customs regulations and support systems. Currently, e-commerce exports are estimated at $5 billion annually, while global cross-border e-commerce exports are projected to grow from $1 trillion in 2023 to $8 trillion by 2030.

The Global Trade Research Initiative (GTRI) has highlighted that without urgent changes, India’s e-commerce exports might only reach $25 billion by 2030. To avoid this shortfall, India needs to adopt measures similar to those in China, which uses foreign warehouses extensively to facilitate faster delivery and provides robust support to its e-commerce sector.

Ajay Srivastava, Founder, GTRI noted, “China’s success is partly due to its use of foreign warehouses and supportive regulations. If India does not implement similar strategies, we may miss out on significant growth opportunities despite our potential.”

China’s e-commerce exports totalled $331 billion in 2023, showcasing the potential for India if the right steps are taken. The Indian government needs to support both direct export and overseas warehouse models. Current regulations are primarily designed for direct exports, which involves shipping products directly to international buyers. In contrast, the overseas warehouse model involves storing popular products in warehouses abroad, leading to substantial savings in freight costs, reduced customs delays, and faster delivery.

GTRI recommends several customs reforms to support this growth, including establishing a dedicated green channel for e-commerce shipments, creating an online identifier for e-commerce exports, streamlining air and ocean cargo processes, and enabling full digital submission of documents. These measures would help align India's customs practices with the needs of the rapidly expanding e-commerce market.

(Source: ET)