The government sees significant untapped potential in cross-border digital trade, with MSMEs expected to drive the next phase of export growth
India’s ecommerce exports could increase by more than USD 10 billion over the next two to three years, supported by the country’s extensive micro, small and medium enterprises (MSME) base and growing global demand for Indian products, a senior trade official said on Monday.
Rajesh Kumar Mishra, Additional Director at the Directorate General of Foreign Trade (DGFT), said India has significant untapped potential in cross-border ecommerce and could narrow the gap with global leaders by leveraging its manufacturing capabilities and strengthening export ecosystems.
Mishra said India should be able to add more than USD 10 billion in ecommerce exports over the next few years, given the country’s large base of MSMEs capable of producing quality goods for international markets.
He pointed out that China currently generates nearly USD 300 billion annually through ecommerce exports, highlighting the scale of opportunity available for India if it strengthens its digital export ecosystem.
According to Mishra, India’s vast network of MSMEs, many of which manufacture globally competitive products, could drive the next phase of export growth through online channels.
Mishra also underscored the importance of logistics in enabling small businesses to access international markets. He said India Post remains an underutilised asset that can offer cost-effective shipping solutions for exporters, particularly MSMEs, helping them remain competitive in overseas markets.
FTAs Need Preparation
On free trade agreements (FTAs), Mishra said trade pacts alone would not automatically lead to higher exports unless manufacturers and exporters adequately prepared themselves to take advantage of the opportunities created by such agreements.
He stressed that all stakeholders needed to undertake significant preparation to fully benefit from FTAs.
Mishra further said the MSME sector would be central to the country’s long-term objective of increasing manufacturing’s share in gross domestic product (GDP) to 25 per cent.
India’s target of achieving USD 1 trillion in merchandise exports, he said the goal would require a combination of measures, including stronger ecommerce exports, improvements in product quality, enhanced export credit availability and other supportive initiatives.
According to Mishra, achieving the merchandise export target would depend on multiple factors working in tandem rather than any single intervention.
The official indicated that sustained efforts across these areas would be necessary for India to significantly expand its export footprint in the coming years.
(With input from agency)
