DGFT partners with the Department of Revenue to create e-commerce hubs, aiming to streamline India’s e-commerce exports.
In an effort to enhance India’s e-commerce exports, the Directorate General of Foreign Trade (DGFT) is collaborating with the Department of Revenue to establish designated e-commerce hubs across the country. These hubs aim to streamline the process for online export shipments, addressing the current $2 billion e-commerce export figure compared to China’s substantial $350 billion.
The government is focused on bridging this significant gap by creating a supportive e-commerce ecosystem. “A lot of streamlining is required in this regard. We are working with the Department of Revenue to have designated e-commerce hubs so that clearance of goods happens fast,” stated Director General of Foreign Trade Santosh Kumar Sarangi.
These e-commerce hubs will feature dedicated customs and security checks, enabling cleared parcels to move through a green channel at airports, thus eliminating further inspections. This model mirrors best practices from other countries, Sarangi added. The hubs, to be built and managed by private entities, will see government oversight for security and customs clearances.
In addition to expediting clearances, these hubs will provide warehousing, returns processing, labeling, product testing, and repackaging services. This public-private partnership aims to create robust infrastructure for efficient e-commerce exports.
Ajay Sahai, Director General of the Federation of Indian Export Organisations (FIEO), noted that these hubs could function similarly to bonded zones, facilitating e-commerce exports. A report estimates that with policy reorientation, India’s e-commerce exports could reach $350 billion by 2030. Experts emphasise that streamlining the export process through dedicated hubs is a crucial step toward achieving this goal.
