Separate e-commerce policy required to touch $350 bn exports by 2030: GTRI

ENA Sectors 2023-03-20 12:56:44 New Delhi, Mar 20 (KNN) India's e-commerce exports have the potential to grow at a faster pace than its IT exports did in the early 2000s, said a report by the Global Trade Research Initiative (GTRI). The economic think tank pointed out that India should target USD 350 billion worth of goods export through e-commerce by 2030. <a href="https://bit.ly/3B9mZSj"><img alt="FOLLOW US on GOOGLE NEWS" src="https://knnindia.co.in//uploads/gallery/GoogleNews.jpg" style="border-style:solid; border-width:1px; height:95px; margin:1px; width:299px" /></a> For the exports to cross over USD 300 billion, the government needs to take steps like formulating a separate policy, GTRI said. It added that the current export provisions for the medium creates an enormous compliance burden on small firms. As per report, the Global business-to-consumer (B2C) e-commerce exports estimated to grow from USD 800 billion to USD 8 trillion by 2030. GTRI said that India's strengths in high-demand customized products, expanding seller base, and higher profit margins per unit of export place it in a prime position to benefit from this trend. The think tank suggests inclusion of redefining responsibilities of sellers; simplifying payment reconciliation and processes; developing business ecosystem; and setting up of a National Trade Network for the medium to reach the e-commerce export target. To simplify payment reconciliation, it suggested more time to receive export proceeds, lower restrictions on receipt of export proceeds, annual financial reconciliation process; and simplification of forex payments. A 25 per cent reduction cap is too restrictive for e-commerce sales that involve discounts and returns. Exporters need flexibility in keeping annual turnover, and restrictions per consignment should be removed, it said. The report also recommended raising the value cap for e-commerce exports from Rs 5 lakh to Rs 25 lakh to allow exporters to choose the shipment mode as per their business requirements. As most trade is shifting to global value chains requiring timely deliveries, exporters must be allowed to choose the shipment mode as per their business requirements. China has created an efficient and seamless logistics system to ship goods to global customers, it added. Besides, the government should create a separate customs code of such shipments, exempting import duties on rejects and treating reimports as duty-exempt imports in line with global practices to reduce costs and expedite the delivery of merchandise, and allowing these exporters to claim GST refunds. (KNN Bureau) 32685 https://knnindia.co.in/news/newsdetails/sectors/separate-e-commerce-policy-required-to-touch-350-bn-exports-by-2030-gtri 2023-03-20 12:56:44 knnindia.co.in Separate e-commerce policy required to touch $350 bn exports by 2030: GTRI