India will be setting up e-commerce export hubs to grow online trade. Nirmala Sitharaman made the announcement. Union Budget 2024 favouring the lower class and rural development. However, the middle class is not very much satisfied. Amid these ongoing discussions, the E-Commerce export hubs will help boost trade and export clearances. It will also help increase exports from the country. Following are details about the Indian government’s initiatives to boost e-commerce.
Why Does the Current Budget Pay Emphasis on Boosting E-Commerce?
The current budget emphasizes boosting e-commerce to increase online trade in the economy. E-commerce has a huge potential. It is currently a $2 Billion economy. However, it has the potential to become an industry worth $350 billion by 2030. It is possible with the help of these government-based initiatives. The increase in e-commerce will also lead to a reduction in the re-imports. This reduction will help to increase exports and make the economy stronger.
Imports have been higher than exports in the country for the last many years. However, it is now time to take the country towards the dream of becoming Viksit Bharat. There is a collaboration between The Directorate General of Foreign Trade (DGFT) and the Reserve Bank Of India. The export and import of e-commerce goods will help in reducing the re-importing of the products. The country already faces issues due to reduced exports. Thus, the e-commerce segment can be a good option in reducing the re-imports.
The increase in exports also helps in building a strong foundation for the country’s economy. The private sector will provide help in operating these facilities. The estimations are to reach the current level of China’s e-commerce market which is $350 Billion. Thus, those starting in e-commerce will also benefit in the long run. It also promotes self-employment and the idea of atam nirbhar bharat. The number of self-employed people is increasing in the country. Almost half of the individuals are earning through self-employment.
However, most of them do not have an e-commerce to promote or take their business online. Taking the business online will not only help them reach more customers, it will also help them bring more stability to their earnings. In conclusion, we saw that the Union budget is focusing on setting up the e-commerce export hubs to reduce the re-imports. The finance minister announced the recent budget for 2024-2025 on 2023 July 2024 where they shared the details about the potential in the e-commerce sector. Stay tuned for more information on our website.