India to Launch E-commerce Export Hubs for Fast-Moving Goods

New Delhi, Aug 29 (PTI) A company with the potential to aggregate fast moving goods like textiles, handloom, handicrafts, gems, jewellery and ship those items on demand can set up e-commerce export hubs in the country, an official said.

The official said that companies having a good sourcing network, logistics backup and good warehousing new port of exit can also set up these hubs.

The directorate general of foreign trade (DGFT), under the commerce ministry, will soon meet companies that are interested in setting up e-commerce export hubs (ECEH) in the country, the official said.

The DGFT has invited proposals from the industry to set up these hubs for examination, support and hand-holding. Based on the proposal, further details, including software requirements for ECEH, to facilitate seamless and expeditious export clearances will be firmed up.

"Any aggregator/firm who has the potential to aggregate fast moving e-commerce goods such as home textiles, handloom, handicrafts, Ayush and wellness products, gems and jewellery and apparels and which can be stored in warehouses and delivered on demand can set up these hubs," the official added.

The official said that companies like Shiprocket and DHL are competent in setting up these centres.

"We will do a video-conference with interested people in 4-5 days," the official said.

The DGFT in a trade notice has earlier stated that draft modalities for operation of these hubs have been formulated.

Based on draft modalities proposed, the government would like to initiate a pilot launch of ECEH.

In the Budget, the government announced setting up of these hubs to promote exports through e-commerce medium in public-private-partnership (PPP) mode.

Initially, there are plans to set up 10-15 hubs in the country.

These hubs would be designated areas, which would act as a centre for favourable business infrastructure and facilities for cross border e-commerce activities.

The major objectives are to provide for predictability and shortest possible turnaround time for e-commerce exports, easy re-import for e-commerce returns or rejects, and bringing various cross-border e-commerce stakeholders under one roof.

At present, India's exports through this medium are only about USD 5 billion compared to China's USD 300 billion, annually. There is a potential to take it to USD 50-100 billion in the coming years.

The draft modalities for operations of these hubs talked about movement of goods from supplier's premises to ECEH; pre-screening of goods; design of these hubs; and process flow for customs clearance once a buyer is found.

ECEH will have two physical components -- first will be the fulfilment area for packing, labelling, and storing to take place after pre-screening and till a buyer is found; and the second will be a customs station where the goods will be customs cleared after the buyer is found, ready for dispatch.

Through these hubs, small producers will be facilitated to sell to aggregators and then that aggregator will find markets to sell. Export products, which hold huge potential through this medium include jewellery, apparel, handicrafts and ODOP (one district one product) goods.

In such hubs, export clearances can be facilitated. Besides, it can also have warehousing facilities, customs clearance, returns processing, labelling, testing and repackaging.

A report by economic think tank GTRI India's e-commerce exports have the potential to reach USD 350 billion by 2030, but banking issues hinder growth and increase operational costs.

India has set a target of USD 1 trillion of merchandise exports by 2030 and cross-border e-commerce trade has been identified as one of the mediums to meet this aim.