India’s micro, small and medium enterprises (MSME) sector will soon get a major lift in their global export ambitions. The Directorate General of Foreign Trade (DGFT) has proposed a new inventory-based e-commerce export model, aiming to simplify cross-border trade for them.
Once the rules are approved, MSMEs can maintain export-only inventory through third-party export agencies linked to e-commerce platforms. These agencies will handle customs, logistics, and compliance, allowing MSMEs to focus on production and branding.
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Why the New Export Policy Matters
For thousands of MSMEs, exporting through current models is often expensive and complex. The proposed framework promises:
- Lower compliance costs
- Simplified customs processes
- Access to global markets via digital platforms
- Safeguards to prevent misuse in domestic sales
This will be beneficial for MSMEs exporting textiles, handicrafts, engineering goods, and FMCG products.
Export Incentives and Government Schemes
This new policy is just the latest among continued support to strengthen MSMEs’ ability to compete globally.
| RoDTEP Extension | The Union government has extended the Remission of Duties and Taxes on Export Products (RoDTEP) scheme until March 2026, to ensure that exporters receive reimbursements on embedded taxes. |
| Market Access Initiatives (MAI) | These comprise financial support for trade fairs, buyer-seller meets, and promotional activities through agencies like Engineering Export Promotion Council (EEPC), Gems and Jewellery Export Promotion Council (GJEPC) and similar agencies. |
| Credit & Quality Schemes | The Union government also has several subsidy schemes for loans, technology upgrades, and quality certifications that help MSMEs meet international standards. |
New Export Markets
With U.S. tariffs rising on imports, Indian MSME exporters are finding new markets in Africa, the Middle East, Latin America, and the European Union. These regions show strong demand for:
- Textiles and apparel
- Processed food and spices
- Engineering goods
- Handicrafts and lifestyle products
Steps MSMEs Can Take
- Register on Udyam Portal to access MSME benefits.
- Claim RoDTEP refunds and apply for MAI support.
- Join e-commerce export pilots under DGFT guidelines.
- Invest in certifications (organic, ISO, textile standards).
- Participate in B2B trade shows to meet global buyers.
Conclusion
The proposed inventory-based e-commerce export model—backed by RoDTEP and other schemes—offers new incentives for Indian MSME exporters, by simplifying trade processes.
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