🇮🇳 India’s Proposed E-Commerce Export Policy

India is weighing a major shift: allowing foreign e-commerce firms like Amazon and Walmart/Flipkart to buy directly from Indian sellers for exports.

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📜 Current Rules

- Foreign e-commerce companies can only act as marketplaces.
- They cannot sell directly to consumers or purchase goods for resale.
- Aim: protect small Indian retailers from foreign dominance.

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🔄 Proposed Change

- Draft by the Directorate General of Foreign Trade (DGFT).

- Would permit e-commerce firms to:
✅ Buy directly from Indian sellers
✅ Export those goods abroad

- Domestic sales remain restricted.

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🏗️ Implementation

- A dedicated export entity linked to the platform would manage:
- Customs & compliance
- Export documentation
- Logistics

- Goal: simplify exports for small businesses facing red tape.

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📊 Potential Impact

- Currently, <10% of small online sellers export.
- Amazon’s India program: $13B exports since 2015, target $80B by 2030.

- Benefits:
- Boost India’s export economy
- Empower MSMEs, artisans, handicraft makers
- Strengthen India’s role in global supply chains

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⚖️ Concerns

- Retailer groups (CAIT, etc.) oppose:
- Fear of market dominance by Amazon/Walmart
- Risk of export goods diverted into domestic sales

- Past antitrust concerns: favoritism toward select sellers.
- Critics warn of a slippery slope toward foreign control.

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🏛️ Next Steps

- Still a draft, requires cabinet approval.
- Likely rollout: pilot program first.
- Strict penalties for violations, including diversion into India’s market.

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🌍 Big Picture

India is balancing:
- Encouraging exports and global integration of small sellers
- Protecting domestic retail from foreign dominance

If approved, sectors like textiles, handicrafts, jewelry, and electronics could see the biggest export boost.

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