The US tariffs on Chinese e-commerce have created an opportunity for Indian exporters, especially those of customized goods. The Global Trade Research Initiative predicts that India, with over 100,000 sellers and $5 billion in exports, can capitalize on this gap left by China.
GTRI emphasizes the need for urgent trade reforms in India, as the current system benefits large exporters, hindering support for small online sellers. The report highlights the critical necessity of banking reforms, as Indian banks struggle with the high volume and low-value aspects of e-commerce exports.
The RBI’s rules currently limit the gap between declared shipping value and final payment to 25%, hindering online exports. The GTRI recommends increasing this limit to 100% and enabling banks to approve valid cases, while addressing bank fees for low-value exporters by proposing to waive these charges to support such exports.
The GTRI report proposes digitally transforming India’s customs system by implementing 24/7 automated inspections and user-friendly digital checklists for small exporters. It also advises modernizing courier-mode shipments to align with terms like “Delivered Duty Paid (DDP),” streamlining paperwork for efficient logistics and minimal delays.
The GTRI report highlights the disparity in credit access between large and small online sellers, with the latter facing higher interest rates and exclusion from public credit programs. To remedy this, the report suggests including small businesses under priority sector lending and extending incentives such as advance authorization scheme, RoDTEP, and duty drawback schemes to level the playing field.
Sources News From Various Digital Platforms, Websites, Journalists, And Agencies.
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