Amazon Global Selling and the growth of e-commerce exports - From the industry leaders

E-commerce exports, dubbed as the sunrise sector of India, has seen a sharp uptake and significant growth in the past couple of years, thanks to the availability of improved logistics solutions, technology, access to new markets etc. According to the Government of India’s estimate in the new Foreign Trade Policy, the industry is set to facilitate exports worth $200-300 billion by 2030. Today, the e-commerce export industry is on track to achieve this goal, which could potentially contribute to 20-30% of the government’s target of $1 trillion in overall merchandise exports by 2030.

Amazon Global Selling has been a part of this growth too, having assisted Indian exporters in selling more than 266 million products to customers across the globe. With 125,000 registered Amazon Global Sellers and counting, it has committed to enabling $20 billion in cumulative e-commerce exports from India by 2025.?

But how will India achieve this goal? What are the major factors that have been steering the movement of the Indian e-commerce export industry upward?

While there can be many answers to this question, here are three important ones:

The growing number and participation of MSMEs

MSMEs form the backbone of the Indian economy, employing more than 11 crore people and contributing about 30% to the country's GDP. The growth of MSMEs can also significantly benefit the overall export ecosystem, as they already contribute almost 50% to the country's exports.

Narayan Tatu Rane, the Union Minister for MSMEs, in an oped in Amazon Global Selling’s Exports Digest , accorded a positive outlook to the e-commerce exports sector and the role that MSMEs will play in it. The minister wrote that the presence of over 125,000 Indian MSME exporters on the Amazon Global Selling program is a strong indicator of the potential that cross-border e-commerce holds for India. He also expressed his encouragement for MSMEs to leverage the technology, research, and innovation that the program offers to understand what customers in international markets want from India and innovate their products accordingly.

The growth of MSMEs and their contribution to the industry is likely to play a vital role in the growth of e-commerce exports in India in the upcoming years and may be a major contributor to achieving the ambitious estimates set by the government.

Foreign trade policy: A major win

India’s new Foreign Trade Policy (FTP), released in 2023, for the first time, incorporates a dedicated chapter on e-commerce exports, aiming to achieve the aforementioned target of $200-300 billion by 2030. In this chapter, provisions such as e-commerce export hubs, outreach initiatives, and extended benefits were highlighted.

The government also plans to establish a centralized Trade India body to replace export promotion councils, focusing on product promotion, market identification, and exploring untapped markets. Initiatives like One District One Product (ODOP) and District as Exports Hub (DEH) will promote e-commerce exports at grassroots levels.

Dr. Badri Narayanan, a fellow and former head of trade, commerce, and strategic economic dialogue at NITI Aayog, wrote in another oped in the Exports Digest that he believes that the FTP, which uplifts the export industry across the country, will help exporters grow considerably and reach their full potential in the future.

Government’s role in helping the export industry

The Indian economy is expected to grow at 6%-6.8% in 2023-24, which is the fastest among other economies worldwide. The government, taking into consideration the speed at which e-commerce and technology has been advancing, estimates the overall exports of India to be more than $2 trillion by 2030.

The Union Minister of State for Commerce and Industry, Mr. Som Parkash, in his oped in Exports Digest, envisions a significant boost for India’s MSMEs in exports, aiming for a 60% share in the coming years. The government’s strategy includes a shift in the export focus towards districts, facilitated by decentralized export promotion activities and the introduction of the Districts as Export Hubs (DEH) initiative. District Export Promotion Councils will collaborate with various stakeholders, including industry associations, trade bodies, private companies, and global e-commerce platforms, to drive district-led export growth.?

To counter the global economic slowdown, the Union Budget for 2023 allocates a 10% increase to export-boosting schemes, such as Refund of Duties and Taxes on Exported Products (RoDTEP), raising it to INR 15,069 crore for 2023-24 from INR 13,699 crore in 2022-23. Narayan Tatu Rane, the Union Minister for MSMEs, Government of India, in his oped in Exports Digest, highlighted the transformative impact of globalization, technology adoption, and the rise of cross-border e-commerce, offering unprecedented opportunities for Indian small businesses and MSMEs to establish international brands and deliver high-quality ‘Made in India’ products worldwide.

Amazon Global Selling has, over the past several years, enabled exporters to achieve their dreams of exporting their products to international marketplaces and grow their businesses. With increasing support from the government, conducive policies, and a constant increase in demand for ‘Made in India’ products, it is likely that the e-commerce exports industry will see further growth along the years. If you also wish to be a part of this growth, start exporting today through Amazon Global Selling .