New Delhi: The Directorate General of Foreign Trade (DGFT), a branch of the commerce ministry, has recommended that banks and financial institutions offer pre and post-shipment export credit to e-commerce exporters, in line with Reserve Bank of India (RBI) guidelines. E-commerce exporters who are facing difficulties with obtaining this credit are being encouraged to report the issues to the DGFT.
This development is significant because the newly introduced Foreign Trade Policy (FTP) for 2023 aims to boost e-commerce exports. The DGFT issued a trade notice announcing that it organised consultations with various representatives, exporters, and nodal departments, to address concerns, including the lack of credit options for e-commerce exports.
One of the common issues that was raised during these discussions was the absence of pre and post-shipment export credits options for e-commerce exports. However, the DGFT clarified that the master circulator titled ‘Rupee/ Foreign Currency Export Credit and Customer Service to Exporters’ provides a comprehensive framework and allows eligible e-commerce exporters to access pre and post-shipment export credit and Packing Credit in Foreign Currency (PCFC)
The DGFT is now urging banks and financial institutions to extend these credit options to e-commerce exporters in accordance with the existing RBI guidelines. Additionally, the FTP for 2023 also emphasises support for e-commerce exports through handholding and outreach programs.
According to a report from the Global Trade Research Initiative (GTRI), India aims to attain the ambitious goal of reaching USD 350 billion in e-commerce exports by 2030. To forward this goal, the government has been advised to formulate a separate policy that addresses the challenges faced by the e-commerce sector.
Currently, e-commerce exports from India only account for USD 2 billion, less than 0.5% of the country’s total goods exports
Also Read More –
Central Government likely to hike dearness allowance by 3% to 45%
CAG asks Finance Ministry to put in place online Customs refund system for efficiency
e-Invoicing mandatory for businesses above Rs.5 crore and above