The Directorate General of Foreign Trade (DGFT), under India’s Ministry of Commerce and Industry, has initiated a significant collaboration with various e-commerce companies to enhance e-commerce exports and empower micro, small, and medium enterprises (MSMEs) across the nation. This collaboration is focused on leveraging the “Districts as Export Hubs” initiative, aiming to promote e-commerce exports extensively throughout India.
As a crucial step in this collaboration, DGFT has signed a memorandum of understanding (MoU) with Amazon India. This partnership aims to link local producers, including those in rural and remote districts, with global supply chains. The strategy includes co-created capacity-building sessions, training programs, and workshops tailored for MSMEs in districts identified under the Districts as Exports Hub initiative, as outlined in the Foreign Trade Policy 2023. The goal is to facilitate exporters and MSMEs in showcasing their ‘Made in India‘ products to an international audience.
The collaborative efforts between Amazon and DGFT will be executed in phases, aligning with the Districts as Export Hubs initiative. This approach involves identifying districts by various e-commerce platforms across India, where capacity-building and outreach activities will be conducted in collaboration with DGFT-Regional Authorities. These activities aim to educate MSMEs on the nuances of e-commerce exports, equipping them to reach customers worldwide. The capacity-building sessions will cover crucial aspects such as digital cataloging, tax advisory, and imaging, empowering Indian entrepreneurs to establish and grow their e-commerce export businesses.
Beyond the collaboration with Amazon India, DGFT is actively engaging in discussions with other prominent e-commerce platforms, including Flipkart/Walmart, eBay, Rivexa, Shopclues, Shiprocket, and DHL Express. The goal is to replicate similar collaborations in different districts of the country, thereby expanding the reach and impact of the Districts as Export Hubs initiative. This multi-platform approach is part of DGFT’s broader efforts to support and promote new and first-time exporters, as well as other MSME producers looking to venture into international markets. The overarching aim is to contribute significantly towards achieving the ambitious target of $1 trillion in goods exports by the year 2030.
The initiative is a strategic move to combine government initiatives with private sector expertise, creating a robust e-commerce ecosystem that supports local businesses and contributes to India’s economic growth. As the Districts as Export Hubs initiative gains momentum, it is expected to be a driving force in shaping the future landscape of Indian exports.
The DGFT’s collaboration with Amazon India serves as the first example of this initiative. Under the MoU, Amazon and DGFT will jointly develop capacity-building activities, training, and workshops for MSMEs in designated districts. The initiative aims to connect local producers with global supply chains, focusing on remote and rural areas, and enable exporters and MSMEs to sell their “Made in India” products abroad. This collaboration aligns with the Foreign Trade Policy 2023, which emphasizes e-commerce as a key area for increasing India’s exports. In this collaboration, various e-commerce platforms in India will identify districts to undertake outreach and capacity-building activities in collaboration with DGFT-Regional Authorities. These initiatives will focus on empowering MSMEs to sell to customers worldwide and educate them about e-commerce exports. The capacity-building sessions will include learning about tax advisory, digital product cataloging, and imaging. Under this collaboration, 20 districts have been designated under the MoU with Amazon India.
Overall, this initiative marks a significant step towards enhancing India’s export capabilities and supporting the growth of MSMEs through the integration of e-commerce platforms and government initiatives.