The strictness by the US on low-value e-commerce imports from China has opened up big opportunities for Indian online exporters, if the government provides timely support, they can fulfill this deficiency. Research Institute Global Trade Research Initiative said this on Sunday.
The GTRI stated that India is in a good position to fill the differences left by China in the field of optimized, small batch products such as India, especially handicrafts, fashion and household items, with existing exports of more than one lakh e-commerce vendors and 5 billion dollars.
America imposed 120% tariff on China
In the US, Chinese and Hong Kong e-commerce exports priced less than $ 800 from May 2 will incur a huge import duty of 120 percent, which will eliminate their duty-free admission. The move is expected to cause disruption in Chinese supply chains and open gates for other countries. Chinese firms Sheen and Temu are the major companies in the region.
In the year 2024, packets worth more than 140 million arrived in the US from around the world, out of which China alone exported such goods worth $ 46 billion. GTRI founder Ajay Srivastava said, India is particularly in a good position of filling the differences left by China in customized, small batch products such as handicrafts, fashion and household items, when it quickly removes obstacles in banking, customs and export incentives.
Indian companies have big opportunity
India’s current trade system is still for large, traditional exporters, not for small online vendors. He said, for these e-commerce companies, red tape often is more overwhelming than support. Srivastava said that Indian banks struggle to handle the high amounts of e-commerce exports and small value.
He said that RBI rules allow only 25 percent difference between declared import price and final payment, which is very tough for online exports, where discounts, returns and platform duty often cause major differences.