The upcoming Union Budget could provide a significant boost to cross-border e-commerce, particularly for micro, small and medium enterprises (MSMEs), as the government considers easing key regulatory constraints, according to officials.
Among the measures under consideration are relaxations in rules governing the return of goods and an increase in the value limit for e-commerce exports through courier routes. The per-consignment cap, currently set at Rs. 10 lakh (US $ 11,000), may be raised to align with the Reserve Bank of India’s Rs. 25 lakh (US $ 27,500) limit for cross-border payment aggregators.
Officials said regulatory easing was critical as India moves to develop dedicated e-commerce export hubs aimed at facilitating such trade. These hubs are intended to support SMEs, artisans and small businesses by reducing logistics costs and turnaround times, streamlining regulatory processes and simplifying re-imports linked to e-commerce returns or rejected consignments.
The proposed hubs are expected to offer integrated facilities, including warehousing, customs clearance, returns processing, labelling, testing and repackaging. Reverse logistics will form a key component, covering the handling of rejected or returned consignments, including re-import and disposal.
Industry stakeholders have been seeking clearer guidelines to recognise returned e-commerce exports as re-imports of returned goods. At present, the absence of a standard operating procedure makes it difficult for e-commerce exporters—many of them MSMEs—to reclaim returned items without paying duty. Exporters have pointed out that customs authorities currently need to certify that the same product is being re-imported, failing which duties are levied.
Fashion and apparel are among India’s leading e-commerce export categories. The country has set itself a merchandise exports target of US $ 1 trillion by 2030, requiring a compounded annual growth rate of 12.2%, with cross-border e-commerce identified as a key contributor. India’s e-commerce exports through postal and courier channels are estimated at around US $ 1.5 billion annually, while global cross-border e-commerce is projected to grow to as much as US $ 2 trillion by 2030.
The Foreign Trade Policy 2023 had already outlined the objective of enabling cross-border e-commerce for artisans, weavers, craftsmen and MSMEs. Under the policy, the government raised the courier export limit to Rs. 10 lakh (US $ 11,000) per consignment, extended Duty Drawback and Remission of Duties and Taxes on Exported Products benefits to courier-mode exports, established more than 1,000 post office export centres, and simplified procedures under the Export Data Processing and Monitoring System to lower compliance burdens and encourage small-scale e-commerce exports.
