Government Expands Export Incentives for E-Commerce and MSMEs
Enhancing Competitiveness in E-Commerce
New Delhi, Jan 16: In an effort to bolster India's e-commerce and MSME sectors, the government announced on Friday the extension of export incentives for postal shipments, effective from January 15.
The Central Board of Indirect Taxes and Customs (CBIC) revealed that export-related benefits under the Duty Drawback, Remission of Duties and Taxes on Exported Products (RoDTEP), and Rebate of State and Central Taxes and Levies (RoSCTL) schemes will now apply to exports conducted via postal services in electronic format.
These incentives are anticipated to significantly improve the competitiveness of MSME exporters, particularly those from smaller towns and remote regions, thereby providing a substantial boost to postal exports, as stated by the Finance Ministry.
"This significant initiative aims to create a level playing field for exporters utilizing postal channels and to foster a supportive and inclusive environment for the growth of cross-border e-commerce. It is expected to greatly enhance the competitiveness of MSME exporters, especially those situated in less accessible areas, and to substantially promote postal exports," the statement elaborated.
Currently, India has 28 Foreign Post Offices (FPOs) recognized under Section 7 of the Customs Act, 1962.
Previously, the CBIC has implemented various measures to enhance cross-border trade through postal and courier services.
The Postal Export (Electronic Declaration and Processing) Regulations, 2022, facilitated complete electronic processing of export declarations for postal exports.
Additionally, the Postal Import Regulations, 2025, were established to streamline electronic processing of postal imports. The automation of IGST refunds for postal exports was successfully executed in September 2024.
To further advance e-commerce exports, the CBIC, in partnership with the Department of Posts, introduced an innovative 'Hub and Spoke' model in December 2022, utilizing India Post's extensive nationwide network.
This model has designated over 1,000 Dak Niryat Kendras (DNKs) across the country to assist in the booking, aggregation, and processing of export parcels, particularly benefiting MSMEs and small exporters, as reported by the ministry.
To support the MSME sector, the government has launched a series of policy initiatives, digital reforms, and regulatory measures aimed at transforming India's e-commerce export landscape.