E-Commerce Export Hubs set to empower Indian SMEs with cost-effective logistics and simplified regulations

THEBUSINESSBYTES BUREAU

NEW DELHI, AUGUST 5, 2025

The Government of India is taking a significant leap toward enhancing cross-border e-commerce by launching the E-Commerce Export Hubs (ECEHs) initiative, which aims to support small and medium enterprises (SMEs), artisans, and small businesses through a comprehensive ecosystem of cost-effective logistics, streamlined regulatory processes, and simplified re-import mechanisms for returns and rejects.

Under the ECEHs initiative, dedicated zones will be developed to facilitate e-commerce exports by offering integrated services such as customs clearance, quality certification, packaging, and off-port warehousing — all at a single location. These hubs are envisioned to drastically reduce both the cost and time required for international shipments. As per Trade Notice No. 14/2025 dated August 22, 2024, issued by the Directorate General of Foreign Trade (DGFT), five pilot projects have been proposed for implementation, marking a decisive step toward scaling India’s presence in global digital trade.

In his written reply in the Lok Sabha on Tuesday, Minister of State for Commerce & Industry, Jitin Prasada, outlined the range of policy and operational measures introduced to promote e-commerce exports from India. These include several enhancements across customs, compliance, and logistical infrastructure to ease the export journey for small sellers.

Chapter 9 of the Foreign Trade Policy (FTP) 2023 lays a strong foundation for boosting cross-border trade in the digital economy. Complementing this, the government has launched the Trade Connect ePlatform ([https://trade.gov.in](https://trade.gov.in)), which provides exporters with a consolidated source of trade-related information. This platform draws data from Indian Missions abroad, Export Promotion Councils, and Commodity Boards, and is further supplemented by outreach activities like the Niryat Bandhu programmes and distribution of detailed handbooks on e-commerce exports.

To facilitate faster and more valuable e-commerce shipments, the Central Board of Indirect Taxes and Customs (CBIC) raised the value limit for courier exports to ₹10 lakh via Notification No. 23/2023-Customs dated March 31, 2023. Furthermore, courier-mode exports have been brought under the ambit of export incentive schemes like Duty Drawback and RoDTEP since September 12, 2024.

The Department of Posts has collaborated with CBIC to operationalise over 1,000 Dak Ghar Niryat Kendras (DNKs) across the country. These DNKs support exporters with packaging, documentation, and regulatory procedures. The International Tracked Packet Service now reaches 41 countries and includes volume-based discounts to incentivise smaller exporters.

In a complementary move, the Reserve Bank of India has released a draft circular proposing key procedural relaxations under the Export Data Processing and Monitoring System (EDPMS). The proposed change will allow Authorised Dealer banks to close shipping bills up to ₹10 lakh based on exporters’ quarterly declarations, easing the compliance load on those handling low-value consignments.

Several of the proposed ECEHs are expected to be directly developed by logistics service providers to ensure seamless warehousing, packaging, and regulatory facilitation under one roof. The government has also signed MoUs and Letters of Intent with major global e-commerce platforms and domestic logistics partners. These strategic collaborations aim to improve export readiness, drive awareness, and promote cross-border e-commerce, especially among MSMEs. Regional DGFT authorities are actively conducting outreach and training programs to guide and onboard SME sellers into the global export system.