India’s First E-commerce Export Hub To Launch By March, Says DGFT

This initiative is part of India’s effort to capitalise on the growing opportunities in e-commerce exports, a sector expected to reach over $100 billion by 2030

The key features of the hubs will include self-sealing procedures without customs or BCAS checks at gateway ports and more

Source : Pexels

India’s first e-commerce export hub is set to start operations by March 2025, revealed Santosh Kumar Sarangi, Director General of Foreign Trade (DGFT). The pilot launch for these hubs has been approved for five companies: logistics aggregator Shiprocket and air cargo handling firm Cargo Service Centre in Delhi; DHL and Lexship in Bengaluru; and goGlocal in Mumbai, said Sarangi.

Sarangi mentioned that the commerce and revenue departments, along with the Bureau of Civil Aviation Security (BCAS), are collaborating to finalise the standard operating procedures (SOP) for launching the hubs. “We expect the first e-commerce hub operational by March of this year,” he noted, reported PTI.

The key features of the hubs will include self-sealing procedures without customs or BCAS checks at gateway ports, a simplified reimport policy for returns, and on-site outposts for quality and certification agencies.

This initiative is part of India’s effort to capitalise on the growing opportunities in e-commerce exports, a sector expected to reach over $100 billion by 2030, with the potential to grow further to $200-250 billion in the years ahead. Currently, India’s e-commerce exports stand at approximately $5 billion, a stark contrast to China’s $250 billion annually.

Sarangi also announced that the Directorate General of Foreign Trade is working on the launch of the second phase of the Trade Connect ePlatform. Phase one, launched in September last year, provided essential information on exports and imports. Phase two will introduce added services such as support for trade disputes, trade analytics, intelligence reports from overseas missions, and trade finance and insurance options.

Additionally, the DGFT revealed plans for the launch of the Diamond Imprest Authorisation (DIA) scheme, set to take effect on April 1. This scheme will allow for the duty-free import of cut and polished diamonds up to a specified limit, with a requirement for 10 per cent value addition. The aim is to position India as a hub for diamond processing and value addition. The Diamond Imprest Licence permits eligible exporters to import diamonds up to 5 per cent of their average turnover from the past three years, with a 10 per cent value addition requirement.