The Center is developing a proposal to meet the short -term credit needs of electronic commerce exporters, as well as to provide support to those who maintain warehouses abroad, economic times reported. The Commerce Department has offered a credit card similar to the Kisan credit card, which should reduce loan costs for exporters of the current range by 15 to 18%.
Officials indicate that a note for the approval of the spending financing committee is underway, because the government aims to stimulate stagnant exports, which amounted to $ 437.42 billion in fiscal year 25, a marginal increase of 0.08% compared to the 2010 financial year.
These initiatives are involved at a critical moment because the United States has recently ended the treatments without rights for low-value imports from China and Hong Kong. In 2024, more than 1.4 billion packages worth $ 64.6 billion arrived in the United States, with almost 60% of China.
“We are working on a wider program to promote electronic commerce exports to solve their financial problem”, the report cited an official, adding that these measures are part of the export promotion mission of 2,250 crores announced in the budget for fiscal year 26.
India electronic commerce exports, facilitated by mail and postal roads, are estimated at 1.5 to 2 billion dollars per year, with total exports, including direct shipments, set at $ 8 billion.
The proposed patterns could extend over a period of five to six years, offering essential stability and support for the sector. The government plans not only to reduce loan costs, but also to extend support for exporters with warehouses abroad, by emulatoring successful strategies of China.
Brand initiatives are also on the agenda to improve India’s competitive advantage in world markets. In addition, the current discussions between the Ministry of Commerce and Industry and the Reserve Bank of India aim to rationalize the banking reconciliation processes within the framework of the data processing and monitoring export system (EDPMS).
The current system, which requires the correspondence of all export payments against shipping invoices, has posed challenges for exporters dealing with low value and high frequency typical electronic commerce.
These challenges are aggravated by EDPMS requirements, where exporters must confirm the realization of payments by matching export payments with shipping invoices.
“Said exporters,” this was a persistent problem, especially for those involved in electronic commerce, as this often involves high frequency shipments. The proposed measures aim to alleviate these difficulties and improve operational efficiency.
The proposed credit card scheme, inspired by the Kisan credit card, aims to provide a financial cushion by offering lower interest rates and flexible reimbursement options, which are essential to maintain the viability of small and medium -sized enterprises engaged in exports.
Thanks to these strategic initiatives, the Indian government hopes to invigorate the electronic trade export sector and position it as a solid contributor to the national economy. As part of the largest export promotion mission, these efforts reflect a concerted thrust to modernize and optimize the export landscape in India.
