e-commerce export hubs: Five firms seek government nod to set up ecommerce export hubs, says official

As many as five more firms, including DHL, have submitted their applications to the government to set up ecommerce export hubs in the country and a decision on this is expected soon, a senior official said. Logistics aggregator Shiprocket and air cargo handling company Cargo Service Centre (CSC) have already been selected by the government on a pilot basis to set up these hubs in the country.

“We have received five more applications, including from DHL and Lexship. Of the five, we have shortlisted three. We are going to decide on these applications soon,” the official said.

Two of the hubs will come up in and around Delhi airport and begin operations in February next year.

It will have facilities for expedited customs and security clearance in-house. Provision for quality and certifying agencies will also happen within the hub.

It will also have an easy re-import policy, he added.

This policy will enable the return of ecommerce consignments and rejects without payment of import duty.

The official said based on the feedback received from these firms on the running of these pilots, the government will come out with detailed guidelines to set up more such hubs across the country. These guidelines will require policy tweaks or regulatory tweaks in different departments.

The move assumes significance as India is looking to tap into the growing export opportunities in this segment.

Ecommerce exports have the potential to grow to over $100 billion by 2030 and then further to $200-250 billion in the coming years.

As per the estimates, global ecommerce exports are expected to touch $2 trillion in 2030 from $800 billion now. India’s exports through this medium are only about $5 billion compared to China’s $250 billion annually.

China, which is a leader in ecommerce exports, is also a pioneer in export hubs for ecommerce. China’s exports through this route are 6.4% of its total merchandise exports in 2023.

In the Foreign Trade Policy of 2023, the intent and road map for setting up e-commerce export hubs were outlined.

DHL Supply Chain India Managing Director Vikas Anand said India’s ecommerce export sector shows significant potential, with the Department of Commerce aiming for exports to reach a target of $200 billion by 2030.

Achieving this goal requires providing a level-playing field for all SMEs in the ecommerce space, he said, adding that it is crucial to create a platform where stakeholders, including DGFT, CBIC, and private entities like DHL Group, can collaborate to propel ecommerce SMEs and help them succeed in the global market.

“The ECommerce Export Hubs (ECEH) is a fantastic pilot project that provides for warehousing, expedited clearances for ecommerce exports and simplified reverse logistics. We are pleased to participate in this pilot project to establish export hubs and, based on its success, expand this initiative on a larger scale,” he added.

RS Subramanian, SVP, South Asia, DHL Express, said through its participation in the ecommerce export hub “we will offer the enabling framework, infrastructure and procedural simplification to help Indian businesses successfully operate in the global market”.