Govt Plans Big Push For E-Commerce Exports With New Export Entity Model

The government is preparing a major policy shift to boost India's e-commerce exports by creating special Export Entities tied to online platforms. These dedicated entities will manage customs clearances, compliance paperwork and logistics, while sellers, particularly MSMEs, can focus on product development, quality and branding.

According to meeting notes reviewed by NDTV Profit, the Commerce Ministry is considering a pilot program that would allow only a few export entities to operate initially before scaling up. The proposed model has been under discussion with global players such as Amazon, Flipkart, FedEx, DHL, industry bodies, and the Reserve Bank of India's Foreign Exchange Department.

The move is designed to simplify cross-border trade for small sellers who often struggle with the complexity and cost of compliance. Export entities would act as third-party facilitators, handling documentation, coordinating logistics, and even processing refunds or returns. Importantly, they may also be entitled to claim export benefits such as GST refunds and duty drawback, with a mechanism being considered to share those incentives with MSMEs.

The model is expected to be integrated with the government's E-commerce Export Hubs scheme, creating dedicated zones for processing shipments. By lowering entry barriers, the government hopes to unlock greater participation of small and mid-sized firms in cross-border e-commerce and diversify India's export base.

While the discussion is still at the proposal stage, the move seems to be heading to fruition, complete with safeguards to prevent misuse of seller-level data, promote transparency, and avoid concentration of market power by larger e-commerce players.

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