The Indian government is taking concerted steps to enable small businesses to tap export opportunities using e-commerce channels. Recently, the Directorate General of Foreign Trade (DGFT) signed an MoU with Amazon India to provide capacity building and handholding support to MSMEs under the ‘Districts as Export Hubs’ program, allowing them to sell internationally via e-commerce platforms.
Introduction
In the first such initiative, DGFT has signed an MoU with Amazon India to provide training, workshops and capacity building for MSMEs under the ‘Districts as Export Hubs’ program outlined in the new Foreign Trade Policy 2023. The aim is to enable micro, small and medium enterprises (MSMEs) to leverage e-commerce platforms and sell their ‘Made in India’ products to international buyers.
Key Highlights of MoU
i) The MoU was signed by DGFT Additional Director General Santosh Sarangi, Amazon India Vice President Chetan Krishnaswamy and Director of Global Trade Bhupen Wakankar.
ii) 20 districts have been identified for initial capacity building and handholding activities under the Amazon partnership.
iii) DGFT is also in talks with other e-commerce platforms like Flipkart, eBay, Rivixa, ShopClues, ShipRocket, DHL Express for similar collaborations.
iv) The initiative aligns with the focus areas of the new Foreign Trade Policy 2023 which aims to promote e-commerce exports.
v) It will help link local producers and MSMEs from remote districts with global supply chains.
Empowering MSMEs for E-Commerce Exports
E-commerce exports present a major opportunity for Indian MSMEs to expand their business globally. However, many small enterprises lack the knowledge and resources to leverage online platforms.
The DGFT initiatives will focus on educating MSMEs on:
i) How to export via e-commerce channels
ii) Digital cataloging of products
iii) Imaging and branding guidelines
iv) Tax and regulatory compliance
v) Reaching potential international buyers
Enabling ‘Districts as Export Hubs’
The ‘Districts as Export Hubs’ program aims to promote exports from rural and remote districts by linking local producers to global markets.
i) DGFT will identify districts for focused interventions by e-commerce partners.
ii) Workshops and training programs will be organized in these districts.
iii) E-commerce partners like Amazon will provide hands-on support to MSMEs on how to sell online globally.
Boosting India’s E-Commerce Exports
E-commerce exports offer immense potential for Indian MSMEs to scale up globally.
i) The partnerships with e-commerce majors will provide a structured framework for capacity building of MSMEs.
ii) It will help them leverage the reach and technical expertise of global online retailers.
iii) Over time, this can significantly boost exports from smaller towns and remote areas.
iv) It will also create thousands of new jobs and entrepreneurship opportunities.
DGFT’s Initiatives to Promote Exports
The e-commerce partnerships align with DGFT’s larger objectives of promoting India’s exports.
i) DGFT aims to handhold first-time exporters, especially MSMEs and help them access global markets.
ii) It is reaching out to new exporter communities like farmers, artisans, and women entrepreneurs.
iii) DGFT also wants to diversify the export basket beyond traditional products.
iv) Promoting e-commerce exports is a key step in this direction.
Conclusion
The collaboration between DGFT and e-commerce majors has the potential to significantly boost India’s exports in the coming years. By empowering MSMEs across India to sell globally via e-commerce, exports can be given a major fillip even from remote districts. This will also create new livelihood opportunities and be a shot in the arm for the Government’s vision of a $1 trillion export economy.