The Indian government is planning a big push for e-commerce exports by creating “special export entities” tied to platforms like Amazon and Flipkart.
These entities will act as third-party facilitators, handling customs clearances, paperwork, and logistics so businesses don’t have to struggle with compliance issues.
Government Plans Special Export Entities to Boost E-Commerce Exports via Amazon and Flipkart
The focus is to support MSMEs and artisans, allowing them to concentrate on product development, quality, and branding instead of getting caught up in administrative work.
A pilot program will first test this model before expanding it on a larger scale.
The proposal also considers an inventory-based model for exports, which would mark a significant shift from India’s current FDI rules that have long been debated.
This move builds on earlier government initiatives meant to strengthen e-commerce exports, an area where India lags behind countries like China despite high growth potential.
Under the Foreign Trade Policy (FTP) 2023, E-Commerce Export Hubs (ECEHs) were introduced to offer integrated services such as customs, warehousing, and quality checks for small exporters.
Districts as Export Hubs (DEH) is another initiative that identifies products with export potential in each district and promotes them globally.
Dak Ghar Niryat Kendras (DNKs) have been set up by the Department of Posts with customs support to help artisans and MSMEs in remote areas export through postal routes.
The export value limit for courier shipments has been raised to ₹10 lakh per consignment, making it easier for small exporters to trade internationally.
The government has also pushed digital reforms, introducing platforms like the Trade Connect e-Platform to simplify compliance, reduce paperwork, and lower costs for MSMEs.
Amazon Global Selling Helps 1.5 Lakh Indian Exporters Reach 18+ Global Marketplaces
Amazon’s export program, Amazon Global Selling, has enabled over 150,000 Indian exporters to reach buyers across 18+ international marketplaces.
In 2024, Amazon announced its goal of enabling $80 billion worth of cumulative e-commerce exports from India by 2030, four times higher than its earlier commitment.
Flipkart launched its global selling program in 2017 after acquiring eBay, helping Indian sellers reach over 190 countries.
Both Amazon and Flipkart are part of the government’s consultation process for shaping these new export entities, along with global logistics firms like FedEx and DHL.
Challenges still exist, including high logistics costs, delays in GST refunds due to technical problems, and difficulties with different payment systems.
The government hopes these new export entities will address such problems, making exports easier for MSMEs and helping boost India’s overall global trade presence.
