Hyderabad:The Economic Survey 2024-25, tabled in Parliament ahead of the Union Budget called for addressing regulatory and compliance obligations to boost the country's exports through the e-commerce medium.
The document highlighted the potential of India's e-commerce exports to become a key contributor to the country's Gross Domestic Product (GDP). However, it noted a few challenges related to regulatory frameworks and compliance obligations against opportunities for growth.
The survey emphasised the unclear roles of sellers and e-commerce platform operators as an example and asked for collaboration between these parties at various stages of export and payment processes.
Customers are increasingly preferring customised products from skilled artisans, and India can leverage its rich tradition of handcrafted items to meet this demand, the document said, highlighting elements that have provided an impetus to India's e-commerce exports, which include:
- Enhanced data connectivity
- Increased penetration of smartphones
- A rise in the availability and use of digital wallets and safer online payments
- Increased customers' income levels
- Growing familiarity with digital shopping platforms
The global B2C e-commerce market is expected to grow from $5.7 trillion in 2022 to $8.1 trillion by 2026, the survey said. India's B2C e-commerce market, valued at $83 billion in 2022, is projected to reach $150 billion by 2026 with a CAGR of 15.9 per cent, it added.
Despite this growth, India's market currently represents only 1.5 per cent of the global market and is projected to remain around 2 per cent in the coming years.
The survey also highlighted the government's E-Commerce Export Hub (ECEH) initiative, which aims to revolutionise the country's cross-border e-commerce. These hubs connect SMEs, artisans, and One District One Product (ODOP) producers to global markets and boost logistics efficiency and economic inclusion in Tier 2 and Tier 3 cities, it added.
The Economic Survey also mentioned the scope of foreign direct investment (FDI) in India, which is said to have a favourable long-term outlook despite short-term global market volatility. According to RBI data, net FDI to India during the first eight months of FY25 was $0.48 billion, compared to $8.5 billion in the same period of FY24.
"India remains a strong destination for FDI, ranking high in greenfield project announcements and international project finance deals. However, the country has to pay heed to numbers," the survey said.
