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India Boosting E-commerce Exports

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India’s Strategic Alliances for E-commerce Export Growth

To empower micro, small, and medium enterprises (MSMEs) and enhance the export potential of e-commerce in India, the Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, is partnering with various e-commerce players. These collaborations seek to capitalise on the Districts as Export Hubs programme, fostering the promotion of e-commerce exports from the country.

Image adapted from Press Information Bureau

In the inaugural partnership with various e-commerce platforms, DGFT has officially signed a memorandum of understanding (MoU) with a multinational technology company specialising in e-commerce, cloud computing, online advertising, digital streaming, and artificial intelligence.

Under the MoU, the enterprise and DGFT will co-create capacity-building sessions, training programmes, and workshops tailored for MSMEs located in districts identified by the DGFT as part of the District as Exports Hub initiative outlined in the Foreign Trade Policy 2023, to be implemented in a phased manner.

This initiative is designed to connect local producers, even in rural and remote districts, with global supply chains. It will empower exporters and MSMEs, contributing to the international sale of their ‘Made in India’ products to customers worldwide. As part of the MoU, 20 districts have been identified for capacity-building and handholding sessions.

The Foreign Trade Policy 2023 emphasises e-commerce as a focus area for enhancing India’s exports. The mission is to harness the capabilities of e-commerce platforms to assist local exporters, manufacturers, and MSMEs in connecting with prospective international buyers.

As part of the agreements, different e-commerce platforms throughout India will identify specific districts to engage in various capacity-building and outreach activities in cooperation with DGFT-Regional Authorities.

These activities will concentrate on educating MSMEs about e-commerce exports and how they can reach customers worldwide. The capacity-building sessions will provide MSMEs with insights into aspects such as imaging, digital cataloging of their products, and tax advisory, among others. With this, the government expects that more Indian entrepreneurs will build their e-commerce export businesses and establish themselves as global brands.

DGFT is in discussion with a range of e-commerce platforms to establish similar collaborations in additional districts across the country under the Districts as Export Hubs initiative. These agreements aim to supplement DGFT’s efforts to handhold and promote new and first-time exporters, as well as other MSME producers, in their efforts to export from India. The government is striving toward achieving the ambitious goal of US$ 1 trillion in goods exports by 2030.

To further support the growth and development of enterprises and consequently the economy, the MSME Ministry has introduced projects like the Champions 2.0 Portal and a mobile application for geotagging cluster projects and technology centres. The Champions portal, which stands for Creation and Harmonious Application of Modern Processes for Increasing the Output and National Strength, was launched in 2020. It ensures the seamless and efficient redressal of MSMEs’ grievances.

Through the portal, MSMEs can receive guidance and advisory services for finance, marketing, technology, raw materials, labour, infrastructure, and capacity building. It also facilitates connections between MSMEs and officials from the ministry, state governments, lending institutions, and national agencies. Moreover, it helps disseminate information and promote awareness about the schemes offered by the Ministry of MSME, ensuring that MSMEs stay informed and have access to the necessary resources for their growth and success.

The mobile application helps MSMEs manage their cluster projects, with geotagging enabling real-time monitoring, tracking, and evaluation for enhanced transparency and optimsed resource use.

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