Economic Survey Flags Challenges That India's $300 Billion E-Commerce Exports Goal Faces

The e-commerce industry's aim to reach an export target of $300 billion by 2030 is hurdled by challenges as per the Economic Survey 2025. The challenges include regulatory frameworks and compliance obligations.

One of the challenges include the unclear role of sellers and e-commerce platform operators. "This requires collaboration between sellers and e-commerce operators at various stages of export and payment processes," the survey adds.

Another challenge that the e-commerce sector faces is the fact that currently exports in India are facilitated through two primary modes, courier and cargo. However, the country's courier export value limit is very less (just Rs 12 lakh). It says, "Presently, exports are facilitated through two primary modes, courier and cargo, with a courier export value limit of USD 12,000 (₹10 lakh), which is less compared to other countries."

A report titled '2023 Global Payments Report' from global financial technology leader FIS indicates that India's B2C e-commerce market is anticipated to grow to $150 billion by 2026 from $83 billion in 2022. However, if we look at the market size of India, by current market size, it makes up a just a small fraction, about 1.5 per cent of the global market. Further, it is projected to stay around 2 per cent in the coming years, adds the survey.

The survey adds, "These exports generated an estimated $4 to 5 billion in exports during FY23 and are expected to increase to $ 200 to $ 300 billion by 2030." It also highlights that e-commerce export in India holds huge potential to contribute to the country's GDP. It adds, "Addressing some of the existing challenges can further unlock opportunities for the sector to achieve its full potential and strengthen its position among leading global e-commerce exporters."

Another challenge that the e-commerce sector faces in terms of export is the fact that there is a delay in customs verification due to the absence of distinct customs supervision codes for both traditional and e-commerce exports. Additionally, it leads to hinderance with regards to data collection. It adds, "Additionally, the absence of distinct customs supervision codes for traditional and e-commerce exports leads to delays in customs verification, and hinders data collection for further policy interventions."

Another challenge the sector faces in terms of export is the nine months of shipment by the RBI with regards to the Foreign Exchange Management Act (FEMA) of 1999. The survey adds, "This timeline supports efficient transactions but may pose challenges for e-commerce operators handling shipments sold over 12 to 18 months."

The survey has also highlighted that when e-commerce goods are returned or rejected, they are exempt from import duties only if exporters can prove they are the same items originally sent, which makes the process complicated. Thus, it becomes pertinent to make the process simple.