India will have its first ecommerce export hub dedicated to cross-border ecommerce by March 2025 as claimed by the Director General of Foreign Trade (DGFT) Santosh Kumar Sarangi. Sarangi further explained that the pilot launch of these hubs has been sanctioned for five firms – Delhi based Cargo Service Centre and logistics aggregator Shiprocket, Bengaluru based DHL and Lexship, and Mumbai based goGlocal.

“Dawood Export, Custom Allowance Services, Customs Cleareance All Services, Diadem Group and BCA are among the companies that SAGIA has so for approved. All other players will be required to have a minimum asset base and can then apply for endorsement online via the PRC system,” Sarangi explained, Sarangi informed that multi-departmental development on SOPs was underway with the departments of the commerce, revenue and Bureau of Civil Aviation Security (BCAS). We expect the first e-commerce hub operational by March this year,” PTI reported.

The facilities are expected to have unique features that will allow self-sealing without customs or BCAS checks at gateway ports. Additionally, the ports will have a simplified reimport policy for returns and designated areas to be set up for quality and certification agencies onsite.

This program is consistent with India’s strategy to leverage e-commerce exports which are envisaged to surpass a hundred billion dollars within a decade and have the potential to increase to $200-$250 billion in the years to follow. Presently, India’s e-commerce export is pegged at 5 billion dollars which is a paltry sum when juxtaposed with China’s 250 billion dollars per year.

Sarangi also disclosed that the Directorate General of Foreign Trade is developing the works for the launch of the second phase of the Trade Connect ePlatform. Phase one was launched in September last year and it was mainly informational concerning export and import. The second phase will incorporate such services as support for trade disputes, trade analytics, reports formulated by missions abroad and trade finance and insurances.

Moreover, the DGFT mentioned the commencement of the Diamond Imprest AuthorisationDIAm which is expected to commence from the 1st of April. Such a policy would permit duty-free cut and polished diamonds imports of certain limits provided the 10 per cent value addition is done on them. This would aim India being a centre for diamond value addition and processing. The Diamond Imprest Licence allows qualified exporters to bring in diamonds worth 5 percent of the value averaged over the last three business years, subject to a 10 percent local value addition.