Easy customs norms, robust payment settlement to boost e-comm exports: Report

New Delhi, Jul 18 (PTI) Measures such as easing customs procedures, robust payment settlement mechanisms and relaxing FDI norms for e-commerce entities will help promote the country’s exports through online medium, a report said on Thursday.

It also asked to allow FDI-funded e-commerce entities to hold inventory for sale in international marketplaces to facilitate global sales of Indian MSME products.

The Indian government aims to achieve USD 200-300 billion in e-commerce exports as part of its USD 1 trillion overall merchandise export target by 2030, which requires a 50-60 fold increase in current export levels, it said.

Complex customs procedures, payment repatriation challenges, and restrictive policies are significant barriers, the EY-ASSOCHAM report said, adding that policy changes are needed in payments, customs, and logistics to help MSMEs access export markets and achieve the goal.

It has suggested reduction in the cost burden of payment reconciliation, enhancing payment realisation timelines, increasing courier consignment limit, and streamlining clearance and reverse logistics processes.

E-commerce exports in India for FY2023 are estimated to range between USD 4 billion and USD 5 billion, accounting for about 0.9 per cent to 1.1 per cent of India’s total merchandise exports, according to the report.

The report suggested that adopting more flexible policies and addressing existing challenges in customs, payments, and logistics could help boost e-commerce exports and achieve the government’s target of USD 200-300 billion by FY2030.

“The recommendations for reforming India’s laws and regulations to achieve exponential growth in e-commerce exports include easing customs procedure, enabling robust reconciliations and payment settlement mechanisms and various policy interventions,” it added.

Further, it recommended the extension of export promotion incentives to e-commerce exporters under the Courier Import and Export Regulations, 2010.