The Federation of Indian Exports Organisation (FIEO), India’s apex export promotion body has asked for an expansion of the list of items that will enjoy export incentives through e-commerce.
Considering the exponential growth potential in cross border e-commerce transaction in coming years, the association has particularly pressed for inclusion of jewellery products in the list which is one of the strongholds of Indian exports.
FIEO has also recommended enhancing the limit of Rs 25,000 for e-commerce exports through courier to Rs 5 lakh which would facilitate easy cross-border transaction of high valued jewellery products. The draft national e-commerce policy prepared by the Ministry of Commerce currently facilitates export incentives under Merchandise Exports from India Scheme (MEIS) to a select list of items like leather footwear, handicraft, handloom and books.
“This list definitely needs to be expanded and include items like gems and jewellery and auto components. These sectors are our strength and the government should not discriminate between traditional mode of exports and e-commerce exports,” Ajay Sahai, DG and CEO of FIEO told Indoasiancommodities.com in an interview.
He emphasised that enhancing the value limit would help medium and small enterprises in the gems and jewellery to sell more in the international market with leading e-commerce firms now having firm footing in the country.
Cross border e-commerce trade is expected to be the next big wave which established players like Amazon, Alibaba, Walmart among others would be harnessing to the hilt given their pan-global presence.
According to a report by UNCTAD, global cross border e-commerce transactions will mount to a staggering $994 billion by the end of 2020 with Asia-Pacific region accounting nearly 48 percent of the total trade.
“E-commerce exports will provide a major push to the global trade and it would be more inclusive in nature creating ample opportunity for small sellers across the board who would not have to worry about the logistics part of the transaction,” Sahai added.
Incidentally, FIEO has recently partnered with eBay to provide market to small- and medium-sized sellers who could now reach out to 179 million buyers worldwide on the platform.