New Delhi: In a major initiative to boost exports amid the US imposition of steep tariffs, the government is planning to create special export entities linked to leading e-commerce platforms. Discussions are currently underway with global players like Amazon, Flipkart, FedEx, and DHL, as well as local trade groups and the Reserve Bank of India.
According to Commerce Ministry meeting notes, a pilot project will be launched first with a select group of export entities. Based on its success, the initiative will be scaled up.
The new export entities will handle customs, compliance paperwork, clearances, and logistics — allowing micro, small, and medium enterprises (MSMEs) to focus on product design, quality, and branding. The government is also considering GST refunds and duty benefits for these entities, which will be passed on to MSMEs.
The model will be aligned with the government’s E-Commerce Export Hubs scheme, which aims to establish dedicated zones for processing cross-border shipments. By reducing entry barriers, the government hopes to expand the participation of MSMEs in global e-commerce and diversify India’s export markets.
The move comes as several MSMEs brace for the impact of the 50% cumulative tariff imposed by the United States. US President Donald Trump first announced a 25% reciprocal tariff in July, effective August 7, followed by another 25% levy linked to India’s purchase of Russian oil.
Industries such as gems and jewellery, textiles, carpets, handicrafts, leather, and footwear have been hit hardest, raising fears of losing price competitiveness against rivals from China, Bangladesh, and Vietnam.
Industry bodies have urged the government to treat the situation as an opportunity to frame a new export policy and redirect trade to alternative markets.
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