E-commerce exports to help increase business of small-town players, says experts

New Delhi: The government measures to promote exports through e-commerce medium would give a major boost to the businesses of traders in small towns of the country, experts said on Friday.

Products made by artisans involved in sectors such as handlooms, handicrafts, and jewellery would be able to access global markets, they said.

"E-commerce is allowing a seller in Karur, Panipat, Jaipur, Moradabad or Tiruppur to reach overseas buyers much earlier in its growth journey," Gaurav Shisodia, Vice President and Country Manager, Payoneer India, said.


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However, he said that discovering customers is only the first step and small exporters also need dependable cross-border payment infrastructure that can support them as order volumes grow and international sales become a larger part of their business.

"The shift could transform not only the value of India's exports but also where export-led economic activity takes place. Traditional export models have often favoured larger businesses with established overseas partners, extensive distribution networks and the capacity to manage bulk shipments," Shisodia said.

He added that e-commerce lowers some of these entry barriers by allowing smaller sellers to begin with relatively modest order volumes.

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"For smaller exporters, e-commerce can open up more than one route to international growth. As businesses begin reaching customers across different markets, the opportunity is to reduce dependence on any single market or channel and build a broader, more resilient export business over time," Shisodia said.

Payoneer, a cross-border payments platform working with SMBs, e-commerce sellers and digital businesses, said the next phase of growth would depend on making cross-border payments simpler, more reliable and easier to manage for smaller exporters.

Think tank GTRI said that India should target USD 350 billion worth of goods export through e-commerce by 2030.

The Global Trade Research Initiative (GTRI) suggested the creation of separate regulations and ecosystems to support two different types of e-commerce exports - direct export and overseas warehouse models; supporting firms to open warehouses in key foreign cities; export incentives at par with physical shipments; marketing support; and creation of regional hubs for MSMEs.

The government has permitted FDI in an inventory-based e-commerce model "exclusively" for export purposes. It is also establishing dedicated public-private partnership e-commerce export hubs.