- The government plans special export entities linked to e-commerce platforms to boost exports
- Pilot project with select entities will precede a wider roll-out based on results
- Entities will manage customs, compliance, and logistics to aid MSMEs focus on products
The government, in a huge push for export in the wake of the US imposition of 50 per cent tariff, will set up special export entities tied to e-commerce platforms. The models are being discussed with global players like Amazon, Flipkart, FedEx and DHL, local trader groups and the Reserve Bank of India.
Notes of a meeting in the Commerce ministry, accessed by NDTV, indicated that a pilot project will be conducted first with a few export entities. Depending on the results, a larger roll-out will follow.
These special export entities will handle customs, clearances, compliance paperwork and logistics, so the Medium and Small Enterprises or MSMEs can focus on product, quality and branding.
The export firms may get refunds from Goods and Services Tax and duty benefits that would be to share 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.
The project is expected to be integrated with the government's E-Commerce Export Hubs Scheme, creating dedicated zones for processing shipments.
The move is expected to be of huge help to MSMEs, which are going to take a huge hit after the US tariffs. Many of them have already asked for help from the government on the lines of what was offered during the Covid pandemic.
In July, US President Donald Trump had announced reciprocal tariffs of 25 per cent that came into effect on August 7. Then he imposed another 25 per cent over India's purchase of Russian oil, bringing the total to 50 per cent, which came into force in August.
Among the industries worst-hit by the double tariff are gems and jewellery, textile and apparel, carpets, handicrafts, leather and footwear, which could lose the price war with cheaper products from China, Bangladesh and Vietnam.
There have been suggestions that the country should take this as an opportunity to formulate a new export policy and divert exports to other nations.
