India's e-commerce exports are likely to grow to $400 billion by 2030

Director General of Foreign Trade (DGFT), Santosh Kumar Sarangi, told a conference of industry body FICCI on Friday, November 17, that India's e-commerce exports are currently worth around $1 billion annually, and are expected to touch $400 billion in the next six to seven years. It is likely to reach the dollar. This growth in e-commerce exports will help India achieve nearly $2 trillion worth of goods and services exports by 2030.
He also said that global e-commerce cross-border, currently around $800 billion annually, is estimated to reach $2 trillion by 2030. Although currently India's total merchandise exports are around $450 billion annually. China's e-commerce exports alone are about $300 billion annually. This suggests that India holds the potential of this sector for the country, where the diversity and innovation of Indian products is immense. The ability of Indian entrepreneurs to fill markets and customize their products to measure specific market requirements is also limitless.
Speaking at FICCI's conference, Santosh Kumar Sarangi said India needs a big mindset and several policy changes to reach its e-commerce export targets. All adaptations for the export ecosystem were modelled based on B2B shipments of exported goods by ship and air, but today it must be modified to cater to e-commerce exporters.
Conflicts in Ukraine and Israel have pushed up fuel prices, putting direct pressure on inflation, and India's merchandise trade deficit hit a record in October. According to data from the Ministry of Commerce and Industry, there was a trade deficit of $31.46 billion in October with imports at $65.03 billion and exports at $33.57 billion. 
The slowdown in global trade growth has had a direct impact on the economies and exports of developed countries in the West, including India, and has led to a sharp decline in inflation. Due to which all those countries have seen their interest rates tighten, resulting in a slowdown in business and trade. However, the conflict between Ukraine and Israel has also driven up fuel prices, adding further pressure to inflation.
Talking about the steps taken by DGFT to promote exports through e-commerce at the FICCI conference, DGFT chief Santosh Kumar Sarangi said that they are working with stakeholders including various government departments, Reserve Bank of India (RBI) and others to address these issues through various sectors is working. DGFT is working together with RBI and Indian Banking Association to further facilitate the process of availing export credit. The central government is expected to soon unveil an e-commerce policy to demystify the country's e-commerce landscape. Its policies and norms have been formulated after several rounds of discussions with all stakeholders in the country.
Sarangi, in his statement, also said that e-commerce stakeholders have asked for a review of the FDI policy on inventory-based model of online trade and exports to promote domestic industry and trade. However, India's FDI policy does not allow foreign direct investment in the inventory-based model of e-commerce. It only allows for companies operating on a marketplace model. 
DGFT is also working with postal services in other countries, including the US, to provide a complete online tracking system for e-commerce export shipments.


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