India's DGFT partners with Amazon to boost e-commerce exports by MSMEs

24 Nov '23

2 min read

MoU signing ceremony. Pic: Press Bureau of India

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The Directorate General of Foreign Trade has partnered with Amazon India to boost MSME e-commerce exports through the District as Exports Hub initiative.
This move involves capacity building in 20 districts, aligning with the Foreign Trade Policy 2023 to integrate local producers into global markets and support India's $1 trillion export goal by 2030.

In a landmark initiative to strengthen micro, small, and medium enterprises (MSMEs) and enhance e-commerce exports, the Directorate General of Foreign Trade (DGFT) of India's ministry of commerce and industry has entered into a collaborative effort with major e-commerce players. This move is part of the government of India's strategy to transform districts into vibrant export hubs. Marking its first such collaboration, the DGFT has signed a memorandum of understanding (MoU) with Amazon India.

Under this MoU, Amazon and DGFT will jointly develop capacity-building programmes, including training sessions and workshops for MSMEs in districts identified by the DGFT. This is in line with the District as Exports Hub initiative, a key component of the Foreign Trade Policy 2023. The initiative aims to integrate local producers, even in rural and remote districts, into global supply chains, enabling them to sell their 'Made in India' products internationally, ministry of commerce and industry said in a press release.

The MoU was signed in the presence of key figures including Santosh Sarangi, additional secretary and director general of DGFT; Chetan Krishnaswamy, vice president of public policy at Amazon; and Bhupen Wakankar, director of global trade at Amazon India.

The primary goal of this partnership is to utilise e-commerce platforms to assist local exporters, manufacturers, and MSMEs in reaching global markets. This aligns with the Foreign Trade Policy 2023's emphasis on e-commerce as a pivotal area for boosting India's exports.

The collaboration will involve identifying districts across India where e-commerce platforms, in conjunction with DGFT-Regional Authorities, will conduct various capacity-building and outreach activities. These activities will focus on educating MSMEs about e-commerce exports and enabling them to reach customers worldwide. In the initial phase, 20 districts have been selected for capacity building and support under the MoU with Amazon India.

DGFT is also in talks with other e-commerce platforms like Flipkart/Walmart, E-bay, Rivexa, Shopclues, Shiprocket, and DHL Express to extend similar collaborations to other districts under the Districts as Export Hubs initiative. These efforts are part of DGFT’s broader mission to support new and first-time exporters and other MSME producers, contributing significantly towards India's ambitious goal of achieving $1 trillion in goods exports by 2030.

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