MoCI plans to build 50 E-Commerce export hubs

Ten of these hubs are planned to be built in the current financial year to accelerate merchandise exports through online platforms, they said, requesting anonymity.

A regulatory framework for e-commerce exports is expected to be ready by next month, they added. India’s current e-commerce exports are significantly low at a mere $5 billion, as compared with China’s $300 billion. The new model aims to enhance efficiency, reduce logistical bottlenecks and provide businesses, especially small and medium enterprises (SMEs), with infrastructure and support to access global markets more effectively.

“The government is finalizing the details of its plan to establish e-commerce export hubs, which was announced in the Union budget in July. The government is identifying key zones for their development and is exploring the possibility of establishing them in nearly every state and Union Territory, including northeastern states,” the first person cited above said.

Setting up e-commerce export hubs would require enhancing logistics, creating large warehousing facilities, and aligning trade facilitation. These export hubs would also help small producers sell to aggregators, who can then find markets for the products. The proposed export hubs are planned to be set up in cities with strong connectivity via road, shipping and airways.

“The government will provide land and customs clearance facilities, as well as necessary civil clearances, at the proposed export hubs for e-commerce products,” the second person said. “All these export hubs will be developed in a plug-and-play mode, which means they will be designed to be easily and quickly operational. It will minimize set-up time and allow businesses to start operations with minimal additional installation or modifications,” this person explained.

For a small e-commerce export hub, a minimum investment of ₹4 crore is required. This amount doubles for medium-sized hubs and is about ten times more for large export hubs.

The Indian e-commerce industry is projected to reach $300 billion by 2030, experiencing significant growth, the IBEF report said. Third-party logistics providers are anticipated to manage about 17 billion shipments within the next seven years, it added. India has around 936.16 million internet subscribers, including about 350 million mature online users actively engaged in transactions.

India has allowed 100% foreign direct investment (FDI) in B2B e-commerce as well as under the automatic route for the marketplace model of e-commerce.