Shiprocket and CSC to Operate Export Hubs for E-commerce in Delhi Region

Nitin Konde, Varun Bhardwaj

Nov 16, 2024 — 2 min read

E-commerce Boost Shiprocket and CSC to Operate Export Hubs in Delhi

According to a senior official on November 14, the government has chosen the logistics aggregator Shiprocket and the air cargo handling company Cargo Service Centre (CSC) to establish e-commerce export hubs in the nation on a pilot basis.

Director General of Foreign Trade (DGFT) Santosh Kumar Sarangi informed reporters that the e-commerce export hubs (EECH) will arrive in and around Delhi airport and start operations in February of next year. The CSC is based in Mumbai, whereas Shiprocket has its headquarters in Gurugram. According to Sarangi, two agencies have been given permission by Foreign Trade to establish experimental e-commerce export hubs in Delhi.

Hubs Will be Equipped with State-Of-The-Art Facilities

The hubs will be equipped with internal expedited customs and security clearing services. They will also have space for certification and quality assurance organisations. He noted that it will also feature an easy-to-implement re-import policy. This policy will allow e-commerce consignments and rejects to be returned without incurring import duties.

Sarangi went on to say that the government will release comprehensive guidelines to establish additional of these hubs throughout the nation depending on the input these companies provide on how these pilots are operating. Different departments will need to make adjustments to their policies or regulations in order to comply with these principles. According to Sarangi, Trade anticipates that many of these centres will be operational throughout the nation following the pilot's successful launch and subsequent scaling up.

E-Commerce Exports are Expected to Reach $100 Billion

According to Sarangi, e-commerce exports could reach over $100 billion by 2030 and then $200–250 billion in the years to follow. Global e-commerce exports are currently valued at $800 billion, but forecasts indicate that they may reach $2 trillion by 2030. China sells $250 billion a year through this channel, while India barely exports $5 billion.

China is a leader in e-commerce exports and a pioneer in e-commerce export hubs. In 2023, this route accounted for 6.4% of China's total merchandise exports. ECEH will play a crucial role in increasing the nation's exports and enabling exporters from the countryside to ship a wide range of commodities. Pharmaceuticals, textiles, home textiles, clothing, jewellery, Ayush items, and cosmetics might all be included. Thus, the DGFT elaborated, there is a wide variety of possible outcomes.

The purpose of establishing e-commerce export hubs was described in the Foreign Trade Policy of 2023, along with a road map for their establishment. Late in the month of August, the applications for establishing these hubs for the purpose of running pilots were called.