E-Commerce Export Hubs Launched to Empower Indian SMEs with Cost-Effective Logistics and Streamlined Regulatory Processes

India has introduced a major policy initiative aimed at strengthening the nation’s small and medium enterprises (SMEs), artisans, and small businesses in the growing space of cross-border online commerce. The newly announced E-Commerce Export Hubs (ECEHs) are designed to offer dedicated zones that simplify the export process, reduce costs, and cut down on time-consuming logistics, a step that provides much-needed support to the backbone of India’s export ecosystem.

Integrated Services for SMEs at ECEHs

ECEHs will bring together essential export procedures at a single location. Exporters, particularly those from small businesses, will have access to integrated customs clearance, quality certification, packaging, and warehousing away from traditional port locations. By providing these services together, the government aims to remove many of the hurdles that previously discouraged smaller exporters from venturing into international markets.

Five Pilot Projects and Industry Partnerships

As part of its initial roll-out, five ECEH pilot projects have been proposed for implementation. Some of these hubs are set to be operated directly by major logistics service providers, allowing for seamless delivery of warehousing, regulatory, and packaging services. The government has also undertaken efforts to partner with both global e-commerce platforms and domestic logistics providers. These relationships have been formally established through Memoranda of Understanding (MoUs) and Letters of Intent (LoIs), signaling a collaborative approach with key industry stakeholders. This move is aimed at building awareness, increasing export readiness among MSMEs, and familiarizing them with export procedures through outreach and capacity-building programs.

New Digital and Regulatory Support Measures

Recent reforms encompass digital and regulatory upgrades meant to simplify procedures for exporters:

• Chapter 9 of the Foreign Trade Policy (FTP) 2023 highlights specific measures to promote cross-border digital trade from India. The focus on digital channels acknowledges the growing footprint of online exports and their importance to small businesses.

  
  

• The Trade Connect ePlatform is a new online portal providing international trade information. Developed in conjunction with Indian Missions, Export Promotion Councils, and Commodity Boards, this portal gives small exporters easier access to key data and support services. The government has also expanded outreach through Niryat Bandhu programmes and handbooks covering e-commerce exports.

  
  

Customs and Logistics Simplification

Significant regulatory progress has been made to facilitate smoother customs and logistics experiences for small exporters:

• Enhanced value limits for courier exports: The CBIC, through a notification dated 31 March 2023, increased the value ceiling for courier exports to ₹10 lakh. This change enables small exporters to process higher-value consignments efficiently through faster courier modes.

  
  

• Export duty remissions extended to courier exports: Effective from 12 September 2024, schemes such as Duty Drawback and RoDTEP now include courier-mode exports, providing critical support in covering export-related duties for small shipments.

  
  

Inclusion of Postal Services: Dak Ghar Niryat Kendras

To further assist small exporters, the Department of Posts and CBIC have notified a network of 1,013 Dak Ghar Niryat Kendras (DNKs). These centers help exporters with documentation, packaging, and regulatory compliance. For international shipping, the International Tracked Packet Service, including volume-based discounts, currently covers 41 countries, offering small exporters additional cost advantages and market reach.

Procedural Relaxations Through RBI Draft Circular

The Reserve Bank of India has issued a draft circular intended to relax export reporting and compliance for small-value exports. Under this proposal, authorized banks (AD banks) will be permitted to close shipping bills up to ₹10 lakh based on quarterly exporter declarations, streamlining reconciliation and significantly reducing compliance requirements for smaller shipments. The change is expected to ease procedural challenges and encourage greater participation from small consignors.

Significance of the Initiative

The launch of ECEHs and the associated policy reforms are viewed as a key development in bolstering India’s e-commerce export competitiveness. By lowering logistical costs, consolidating regulatory processes, and enhancing accessibility to digital trade resources, the government is taking direct steps to empower SMEs and artisans. These initiatives collectively aim to drive inclusive growth, create new pathways for Indian products in global markets, and strengthen India’s position as a reliable source of diverse goods in the increasingly important digital economy.