Context: 

The new Foreign Trade Policy (FTP) 2023 took several initiatives to increase the value limit of exports through couriers by increasing e-commerce exports from ₹5 lakh to ₹10 lakh per shipment.

The status of e-commerce:

• Current e-commerce exports in India: The e-commerce exports from India are valued at $2 billion, which is less than half a percent of the total exports of $447.46 billion in 2022-23.
• Global e-commerce exports: Global e-commerce exports are estimated to reach $2 trillion by 2025, indicating significant growth potential.
• Potential growth for India: To explore the potential of e-commerce exports in the range of $200 billion to $250 billion by 2030, India needs to address the challenges faced by SME exporters by formulating an e-commerce export policy.

Challenges with e-commerce exports in India:

• Infrastructural Barriers: Lack of proper infrastructure, such as warehousing and transportation, makes it difficult for e-commerce businesses to scale and reach reac a larger audience. -I IL. I 
• Payment and Financial Services: Access to payment and financial services, especially for small businesses, is still a major challenge. 
• Lack of Trust: Customers are often hesitant to make online purchases  from unfamiliar websites, which can limit the growth of e-commerce exports. 
• Shipping and Delivery: Shipping and delivery of products to foreign countries can be expensive and time-consuming, leading to dissatisfaction among customers. 
• Customs and Duties: Complex customs and duties regulations can make exporting goods challenging and time-consuming. 
• Cybersecurity: E-commerce websites are vulnerable to cyber attacks, which can lead to loss of sensitive information and negatively impact the reputation of the business. 
• Lack of Standardization: Lack of standardization in terms of product quality, delivery, and customer service can make it difficult  for e-commerce businesses to gain a competitive  edge. 
• Competition from International Players: Competition from well-established international e-commerce companies can make it difficult for Indian companies to grow ana succeed in tne global market. 

What are the Related Steps taken:

• Free-trade Agreements: To Encourage Cross-Border Trade, the government has signed various Free-trade  agreements with countries such as the UAE, the UK, Australia, and others, which has led to a rise in exports. 
• Digital India initiative: The Digital India initiative has provided solid  impetus to other government-led initiatives, including Start Up India and Aatmanirbhar Bharat, which have great potential to translate into lobal success. 

How can India lead the E-commerce Export Market?

• Creating more Awareness: Creating awareness about e-commerce exports is crucial in promoting and increasing the growth of this industry. 
  • Education and training can help in gaining a better understanding of the benefits and opportunities offered by e-commerce exports. 
  • Networking events which can serve as a platform for businesses and individuals to connect and share ideas. 
  • Marketing campaigns can also play a crucial role in creating awareness about e-commerce exports. 
• Improving Infrastructure: India needs to invest in better  infrastructure facilities such as roads, ports, and warehouses to make it easier for e-commerce companies to export their products. 
• Simplifying Export Regulations: The government can simplify the  export regulations and procedures to make it easier for e-commerce companies to start exporting. 
• Encourage Foreign Investment: The government can encourage foreign  investment in the  e-commerce sector to bring in more resources and expertise to help companies grow. 
• Developing a strong logistics: A strong logistic etwork is crucial for e-commerce exports, and India needs to develop this network to ensure that products reach their destination on time. 
• Building Strong Partnerships: The government can build strong partnerships with other countries and organizations to help Indian e-commerce companies access new markets and find new customers.

News Source: The Hindubussinessline

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