Online sellers have sought permission for FDI in inventory-based model for e-commerce for export purposes

On Friday, Director General of Foreign Trade (DGFT) Santosh Kumar Sarangi said traders have appealed to the government to examine the possibility of allowing FDI in inventory-based model for e-commerce only for export purposes. But currently the country's FDI policy does not allow foreign direct investment in the inventory-based model of e-commerce. It only allows companies governed by the marketplace model. If considered, it would allow e-commerce companies like Amazon and Walmart's Flipkart to hold inventory. Sectoral organizations under FDI can only act as a marketplace.
Sarengi said at the FICCI event, for export purposes only, if it can be reconsidered is something we urge the Department of Industry and Internal Trade Promotion to examine and explore.
An industry executive said faster delivery and better capital gains can be ensured if e-commerce firms are allowed to hold inventory even just for export.
Forum for Internet, Retailers, Sellers and Traders (First), President, Vinod Kumar said, "We have engaged with various sectors to facilitate a change in attitudes. Export markets are capital and compliance intensive and allowing marketplaces to list exports would greatly benefit small sellers.
Sarangi said the government is working on an 'array of issues' to drive e-commerce exports, which the government hopes will touch $200 billion in the next six to seven years. The government is making efforts to resolve issues related to availability and disbursement of export credit. Discussions are also on with the Revenue Department to see if a similar scheme like the composition levy scheme can be devised for smaller players.
Speaking at a conference on e-commerce exports, Sarangi, while talking about the steps they are working on to promote exports through e-commerce, said the Department is working with the Department of Revenue (DOR) to see if it is mandatory for most of the exporters, including small exporters. Included under GST regime. Exports through e-commerce can often result in duty and tax waivers or state and central taxes and levies being waived on exported goods that are not benefiting from the DGFT scheme. We are now working with Express Cargo Clearance System and Postal Bill of Patani so that shipping bills flow directly. And such exports can also be brought under the scheme. And currently DGFT is also working with the Foreign Department to ensure that the Foreign Post Office is strengthened and expanded. And a complete online tracking system can be provided. 
Sarangi also said e-commerce is one of the top priorities to provide warehousing facilities and fast packaging clearance facilities from export zones. But the current policy ecosystem does not support this approach, as the export-based unit model is only for production. But the JE facility mentioned here is not thick manufacturing but rather processing and packaging. Hence, we will implement export-based unit model for e-commerce exports. And be able to convince DOR about the feasibility of this model. DGFT has been trying to increase the importance and awareness of e-commerce exports in the context of various departments. All adaptations to the export ecosystem at present have been models of B2B shipment of goods by air and sea.
He also said, the prospect of our people being able to sell their own brands across the globe using e-commerce platforms is something that requires a lot of mindset change. So we are working with DoR, RBI, and DPIIT to change this mindset. Within the DGFT, they are ensuring that all regional authorities are exposed to the nuances of e-commerce. And initiatives are taken to train e-commerce exporters. To begin with, we are joining hands with the Amazon company, with which we have signed an MoU to conduct a pilot in 20 districts. Where we will arrange training for those exporters. Apart from this, we are also working with Walmart and Flipkart.
He also said in his statement, "In the coming days we will concentrate on creating a pool of mentors within India to guide the exporters." Once this is complete, we expect that the e-commerce ecosystem is going to develop very rapidly. We also expect to export $2 trillion worth of goods and services by 2030.




Comments

Post a Comment

Popular posts from this blog

India has decided to allow onion exports to Bangladesh and five other countries

As reported by a news media recently, India has decided to allow onion exports to Bangladesh and five other countries through government-to-government route on the recommendation of its Ministry of External Affairs. India is the second largest onion exporter in the world. But in December 2023, the government of India imposed a ban on onion shipments to control rising onion prices and ensure adequate availability in the market and extended it till March this year due to the upcoming national elections. India initially imposed a 40 percent tariff on onions to discourage its exports but when that move did not yield the desired results, it imposed a ban. A person familiar with the matter said that while no decision has been taken to lift the ban on onion exports outright, limited quantities of onion exports have been allowed for bilateral purposes. In addition to Bangladesh, five countries, including Nepal, Bhutan, Bahrain and Mauritius, said exports have been allowed. The Bangladesh gover...
Read more

Indonesia's state procurement agency BULOG has issued an international tender to buy about 300,000 metric tons of rice.

Indonesia's state procurement agency BULOG has issued an international tender to buy about 300,000 metric tons of rice, European traders said last Tuesday. International tenders are asking for 5% broken grade white rice. It should be available from the 2023/2024 crop year and milled no more than six months earlier. Tuesday, February 27, is the last date for registration to participate in the tender for these trading houses. The Indonesian government has allocated an additional rice import quota of 1.6 million metric tons for 2024. The latest import quota, which was above the previously approved 2 million tonnes for 2024, comes amid expectations that the country's January-March rice harvest will be lower than last year due to normal rainfall in Java - the country's main rice-growing region. A severe drought in Southeast Asia's most populous nation has reduced production of staple foods, driving up crop prices. As a result, the price of imports has to be increased. In suc...
Read more

Exports of leather goods from India will decline by 13-15 percent in the current fiscal

Chairman of the Indian Finished Leather Manufacturers and Exporters Association, K.R. Vijayan said exports of leather goods from India will decline by 13-15 per cent in the fiscal year 2023-24. But with strong winter demand for leather products in Europe, we expect a strong rebound of around 20 per cent in FY25 on account of new orders from there. Exports of finished leather were $4.87 billion in 2021-22, increasing to $5.26 billion in 2022-23, while exports in the current fiscal year 2023-24 till October were $2.81 billion, which is 13 percent lower than October of the previous fiscal. Considering the country's export growth potential and consumer base, we have set a target of $47.1 billion turnover in the footwear and leather industry by 2030, Vijayan said. Of which $33.4 billion is domestic industry turnover and the remaining $13.7 billion is export turnover. But we need innovation in both technology and advanced machines to achieve this goal. India is the second largest exporte...
Read more