Introduction As the world becomes increasingly interconnected, eCommerce is reshaping international trade dynamics, empowering even the smallest businesses to tap into global markets. The next decade holds significant promise for eCommerce exports, propelled by rapid technological advancements, shifting consumer preferences, and government support. India, with its unique blend of traditional craftsmanship and modern manufacturing capabilities, is well-positioned to play a pivotal role, particularly in key sectors such as textiles, consumer electronics, and agribusiness.

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The Surge of eCommerce Exports: Trends and Projections

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The global eCommerce industry has experienced explosive growth, reaching an estimated value of $26.7 trillion in2019, with projections suggesting it could surpass $40 trillion by 2026(Statista). Cross-border eCommerce transactions are expected to grow significantly, representing approximately 22% of total eCommerce sales by 2026,up from around 15% in 2020 (eMarketer).

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• SME Contribution: In India, SMEs account for approximately 48% of total exports, contributing significantly to the national GDP, which stood at $3.5 trillion in 2023 (World Bank).
• Market Growth: India’s eCommerce sector is projected to reach $300 billion by 2030, driven by the increasing adoption of digital payment systems and mobile commerce (IBEF).

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Digital Accessibility:

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• Internet Reach: As of 2023, over 800 million people in India have access to the internet, with penetration expected to rise to 60% by 2025 (TRAI).
• Smartphone Usage: India is home to approximately 1 billion smartphone users, which is expected to reach 1.2  billion by 2025 (Statista).

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Diversifying Export Markets: Strategies and Initiatives

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India is actively diversifying its export portfolio, moving beyond traditional markets like the U.S. and Europe to include emerging regions such as Africa, Southeast Asia, and Latin America.

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• Trade Partnerships: The U.S. accounted for 18.1% of India’s total exports in 2023, while trade with  Africa increased by 15% year-on-year (Ministry of Commerce & Industry).
• Emerging Markets: India’s exports to ASEAN countries reached $60 billion in 2023, reflecting the strengthening of trade relationships in Southeast Asia (EXIM Bank).

Government Strategies:

• Export Hubs: The Indian government  has announced plans to establish $100 billion export hubs aimed at enhancing infrastructure and logistics support for key sectors such as textiles and electronics (Ministry of Commerce).
• PLI Scheme: The Production-Linked Incentive scheme is expected to generate over $520billion in manufacturing output by 2025, creating new jobs and enhancing export capabilities (Invest India).

ONDC: A Game Changer for India’s Export Framework

The Open Network for Digital Commerce(ONDC) is a groundbreaking initiative designed to level the playing field for businesses, particularly SMEs, in the digital commerce space. By creating a shared network, ONDC aims to streamline transactions across various platforms.

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• Market Reach: ONDC aims to onboard 1 million sellers by 2025, significantly increasing the availability of Indian products in global markets (ONDC Annual Report).
• Cost Efficiency: Participating businesses are projected to see a reduction in operational costs by up to 30% through improved logistics and supply chain efficiencies (McKinsey).

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Benefits of ONDC:

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• Unified Ecosystem: ONDC integrates various stakeholders, including manufacturers, logistics providers, and digital payment systems, creating a cohesive export ecosystem.
• Data Utilization: The network  enables data sharing among participants, fostering informed decision-making and targeted marketing strategies.

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Conclusion

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The coming decade presents a wealth of opportunities for India to enhance its role in the global eCommerce export market. Collaborative efforts between government bodies and private enterprise swill be essential to navigate the complexities of international trade and unlock sustainable growth.

Sources :Statista, World Bank, Ministry of Commerce & Industry, IBEF, ICEA, APEDA, McKinsey, Spices Board of India.