India has set an ambitious target of $200 billion in ecommerce exports by 2030, up from the current $5 billion, which comprises just 1% of India’s merchandise exports. As per an EY-Assocham report, adopting more flexible policies and addressing existing challenges in customs, payments and logistics is key in helping boost ecommerce exports from India. This would not just benefit the economy but also MSMEs who will have better access to global markets to gain a competitive edge in the marketplace.
In an interaction with The Economic Times Digital, Akshay Ghulati, CEO – International Shipping, Shiprocket, delves more on why efficient cross-border payments are crucial for MSMEs, how to navigate the complex challenges that can arise in this process and the way forward in ecommerce exports for India. Edited excerpts:
The Economic Times (ET): How do you see cross-border ecommerce pan out in the new fiscal for MSMEs?
Akshay Ghulati (AG): Cross-border ecommerce presents immense potential for Indian MSMEs. With global cross-border ecommerce projected to reach $800 billion by 2025 and $2 trillion by 2030, Indian MSMEs are well-positioned to lead this transformation. At Shiprocket, we have witnessed this evolution firsthand. Small sellers are captivating global consumers with products known for their quality, cultural richness, and sustainability. The growing demand for Indian goods, from handcrafted textiles to eco-friendly beauty products, reinforces the need to enable these businesses to go global. Platforms like ShiprocketX are designed to solve real challenges by streamlining shipping, simplifying access to markets like the US, UK, and Europe, and integrating with leading marketplaces such as Amazon, Etsy, and eBay. The government’s initiatives to boost exports are unlocking new opportunities for Indian businesses. With streamlined processes and programmes that link local manufacturers to global buyers, these efforts are paving the way for India to emerge as a leading global trade hub.
Initiatives like the DGFT’s Ecommerce Export Hubs and advancements in technology, including AI and blockchain, further support this growth by equipping MSMEs with tools to confidently navigate global trade. Collaborative efforts between the government, private sector and industry enablers are fostering a supportive ecosystem that addresses challenges and unlocks new opportunities for Indian businesses to thrive internationally.
By enhancing the competitiveness of Indian-made products, mentoring, and promoting grassroots-level participation in global trade, these measures are positioning MSMEs to scale their presence in global markets. With this robust support in place, the new fiscal year promises tremendous opportunities for Indian businesses to lead the way in cross-border ecommerce.
ET: What are Shiprocket’s initiatives to enable easier facilitation of cross-border payments for MSMEs?
AG: At ShiprocketX, we understand that efficient cross-border payments are crucial for MSMEs. To address the challenges of complex payment processes and high fees, we collaborate with leading marketplaces such as Amazon, Etsy and eBay to provide seamless integration and access to global customers. These partnerships enable sellers to simplify their operations while expanding their reach internationally. ShiprocketX also offers benefits like real-time shipment tracking and automated workflows, ensuring a smoother trade experience for merchants.
We provide personalized support through dedicated account managers to help sellers navigate export documentation and compliance, ensuring timely and secure payments. Additionally, ShiprocketX’s shipment security coverage further safeguards exporters’ financial interests, helping to build trust with international buyers. Our goal is to empower MSMEs by simplifying payment processes, allowing them to scale confidently in international markets.
ET: Tell us more about CargoX and its role in simplifying exports for over 3,000 merchants?
AG: CargoX simplifies bulk exports for over 3,000 merchants by covering a reliable and cost-effective solution for cross-border shipping. Whether handling FBA shipments, Walmart operations, regular heavy goods, or bulk goods, CargoX provides prompt shipping schedules, customized quotations, and comprehensive liability coverage. The platform’s holistic approach, covering every stage from pickup to final delivery, ensures that merchants can focus on business growth without worrying about logistics.
With shipping schedules that adhere to tight timelines and tailored quotations to optimize costs, merchants have a tool that makes bulk shipping both predictable and efficient. Comprehensive liability coverage adds an extra layer of protection, safeguarding every shipment throughout its journey. Additionally, no-appointment deliveries for FBA shipments streamline operations, allowing merchants to scale their business with ease.
ET: Why do cross-border payment mechanisms still feel a herculean task for merchants in the Indian ecosystem? What can be done about it?
AG: Cross-border payments remain a significant challenge for Indian merchants because they involve multiple layers of complexity. High transaction costs, delayed settlements and the maze of compliance requirements create roadblocks, especially for MSMEs trying to scale internationally. For many, managing foreign exchange rates, navigating documentation, and dealing with multiple intermediaries is not just overwhelming—it directly impacts their profitability and cash flow.
There’s no one-size-fits-all solution, but a multi-faceted approach is definitely the way forward. Fintech innovations are making a big difference by introducing real-time settlements and more cost-effective currency conversions. These tools are reducing the friction in cross-border payments. Additionally, collaborations between banks, marketplaces and export facilitators are playing a critical role in simplifying compliance processes and speeding up payments. Government-backed export initiatives are also encouraging merchants to explore new-age solutions tailored for global trade.
ET: What kind of government initiatives are helping to boost India’s ecommerce share in exports?
AG: The Indian government has taken several steps to enhance e-commerce exports, focusing on empowering MSMEs and making trade processes more efficient. Initiatives like Ecommerce Export Hubs by DGFT aim to provide the infrastructure and logistical support that small businesses need to enter global markets. These hubs help reduce barriers, making it easier for MSMEs to take advantage of international opportunities. Additionally, the Production-Linked Incentive (PLI) schemes support Indian manufacturers, boosting the global competitiveness of their products, which indirectly benefits e-commerce exports.
Collaborations have also been key to driving progress. Partnerships with the government bodies like the Directorate General of Foreign Trade are helping to educate exporters and build their capacity. For example, training programmes focus on helping MSMEs navigate the complexities of cross-border trade, from compliance and documentation to logistics. These efforts, combined with collaborations between logistics networks and payment facilitators, are making it easier for Indian exporters to compete on an international scale.
For instance, our collaboration with DGFT includes capacity-building programmes in 16 districts, where we work closely with MSMEs to help them overcome trade barriers. By simplifying compliance and integrating these initiatives into our platform, we’re creating a supportive ecosystem that enables Indian sellers to expand their e-commerce exports and thrive in the global marketplace.
ET: What is the outlook that you envision for the MSME ecosystem in the times ahead?
AG: As we step into 2025, the focus must remain on simplifying regulatory frameworks, investing in digital infrastructure, and fostering collaborations between governments and businesses to unlock the $2 trillion export potential of MSMEs by 2030. The journey ahead is not just about meeting ambitious targets but about positioning India as a trusted global leader in ecommerce exports. Together, we are crafting a future where every ‘Made in India’ product resonates with the world as a symbol of quality, innovation, and sustainability.
