Amazon and the Directorate General of Foreign Trade (DGFT) have renewed their Memorandum of Understanding (MoU) to further accelerate e-commerce exports from India. This renewed collaboration builds upon the success of their initial partnership, aiming to support India’s ambitious goal of achieving $200-300 billion in exports by 2030. The focus remains on empowering Micro, Small, and Medium Enterprises (MSMEs) with the necessary skills and resources to thrive in the global marketplace.
Expanding Reach and Impact
This year’s collaboration significantly expands the scope of the initiative, extending specialized training sessions to 47 districts across India, up from 20 districts in the first year. This wider reach will bring valuable knowledge and support to a greater number of MSMEs, enabling them to tap into the vast potential of e-commerce exports. Santosh Sarangi, Additional Secretary and Director General of DGFT, emphasized the importance of this continued partnership in realizing the vision of making each district an export hub. He highlighted the success of the initial phase, which benefited over 3,000 MSMEs, and expressed excitement about the projected growth and impact on India’s export targets.
Key Initiatives for MSME Empowerment
The renewed MoU focuses on several key initiatives designed to provide comprehensive support to MSMEs:
- Specialized Training Sessions: These sessions will guide MSMEs in expanding their product selection, scaling export operations, and navigating the complexities of international trade. By combining Amazon’s global expertise with DGFT’s local knowledge, these sessions aim to unlock new opportunities for Indian sellers in international markets.
- Integration of Export Navigator: Amazon’s Export Navigator tool, a comprehensive dashboard designed to help exporters understand and manage regulatory requirements, will be integrated within DGFT’s Trade Connect portal. This integration will provide MSMEs with easy access to crucial information regarding cross-border compliance, logistics, and payments, simplifying the export process.
- Establishment of Export Communities: These local, offline networks will serve as vital support systems for MSMEs engaged in or planning to venture into e-commerce exports. The communities will offer guidance, training, mentorship, and hands-on assistance, fostering a collaborative environment where MSMEs can learn from each other and access expert advice. These communities will bring together various stakeholders, including government agencies, third-party service providers, manufacturers, and existing and prospective exporters.
Previous Success and Future Goals
The initial collaboration between DGFT and Amazon in 2023 saw the organization of e-commerce export promotion events across 20 districts. These events provided valuable guidance to over 3,000 MSMEs, covering topics like selling on Amazon’s global marketplaces. Participants received on-the-spot assistance and real-time query resolution, facilitating a smooth onboarding process and connecting them with trusted third-party service providers.
Bhupen Wakankar, Director Global Trade – Amazon India, expressed enthusiasm about the extended collaboration and its potential to empower MSMEs. He reiterated Amazon’s commitment to simplifying exports and making them accessible to businesses of all sizes, aligning with their goal of enabling $80 billion in cumulative e-commerce exports from India by 2030.
Districts as Export Hubs Initiative
This initiative, a key component of India’s Foreign Trade Policy, focuses on leveraging the unique potential of each district to transform them into export hubs. The Department of Commerce, through the DGFT, works directly with states and districts to establish institutional mechanisms for facilitating exports. This initiative aims to boost manufacturing and exports, connecting local producers with global supply chains and stimulating economic activity across the country.
The renewed partnership between Amazon and DGFT represents a significant step towards achieving India’s ambitious export goals. By empowering MSMEs with the necessary skills, resources, and support, this collaboration promises to unlock the vast potential of e-commerce exports and drive economic growth across the nation. The focus on training, technology integration, and community building will create a robust ecosystem for MSMEs to thrive in the global marketplace and contribute to India’s growing prominence in international trade.
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