India Boosts Support for Services Exports and E-Commerce Trade
Centre expands support measures for services exports and e-commerce trade
The Government of India has announced an expanded set of support measures aimed at boosting services exports and facilitating cross-border e-commerce trade, as part of its ongoing efforts to strengthen India’s position in global digital and services markets. The measures, detailed in recent communications from the Department of Commerce and related agencies, focus on easing regulatory processes, enhancing digital infrastructure, and improving access to international markets for Indian service providers and e-commerce exporters.
Policy framework and recent announcements
The expanded support framework for services exports and e-commerce trade has been developed under the broader umbrella of India’s export promotion strategy, which has increasingly prioritized services alongside goods. In its 2025 Year End Review, the Department of Commerce highlighted that services exports have continued to grow, with IT and IT-enabled services remaining the dominant component. The government has now introduced a series of targeted interventions to sustain this momentum and address emerging challenges in digital trade.
Key elements of the expanded support include simplification of export documentation for services, enhanced access to trade facilitation mechanisms for e-commerce exporters, and integration of digital public infrastructure with export-related processes. These measures are being implemented through coordinated action by the Department of Commerce, the Ministry of Electronics and Information Technology, the Directorate General of Foreign Trade, and other relevant agencies.
Streamlining services export procedures
One of the central components of the expanded support is the simplification of procedures for services exports. The government has directed the Directorate General of Foreign Trade to rationalize documentation requirements for service providers engaged in cross-border delivery, particularly in IT, ITES, consulting, and professional services.
Under the revised framework, service exporters will no longer be required to submit multiple physical or scanned documents for each transaction. Instead, a standardized digital declaration format will be used, which can be filed through existing electronic platforms such as the ICEGATE portal. This is expected to reduce compliance burden, especially for small and medium-sized service exporters who often face challenges in navigating complex export documentation.
The government has also clarified that services exports will be treated as “deemed exports” for the purpose of certain incentives, provided they meet specified criteria related to foreign exchange realization and service delivery to overseas clients. This aligns with the existing practice for goods exports and is intended to ensure that service providers can access relevant benefits without unnecessary procedural hurdles.
Support for e-commerce exporters
The government has introduced a dedicated set of measures to support Indian e-commerce exporters, particularly micro, small, and medium enterprises (MSMEs) selling through global online marketplaces. These measures are being implemented in coordination with major e-commerce platforms, logistics providers, and payment gateways operating in India.
A key initiative is the establishment of a centralized e-commerce export facilitation mechanism, which will provide end-to-end support to exporters, including assistance with product listing, customs clearance, logistics, and payment settlement. The mechanism will be accessible through a single-window portal, integrated with existing trade facilitation systems such as ICEGATE and the e-Sanchit document management system.
Under this framework, e-commerce exporters will be able to file a single integrated declaration for their shipments, covering both customs and foreign exchange reporting requirements. This is expected to significantly reduce processing time and improve the predictability of cross-border shipments, especially for low-value consignments that constitute a large share of e-commerce exports.
The government has also directed customs authorities to treat e-commerce exports on par with traditional exports in terms of duty drawback, GST refund, and other export incentives, provided the shipments are properly documented and declared. This is intended to level the playing field between e-commerce and conventional export channels.
Integration with digital public infrastructure
A critical aspect of the expanded support measures is the integration of services exports and e-commerce trade with India’s digital public infrastructure (DPI). The government has emphasized that DPI, including Aadhaar, UPI, GSTN, and the National Payments Corporation of India (NPCI) ecosystem, will be leveraged to create a seamless, low-cost, and secure environment for cross-border digital trade.
For services exports, the government is promoting the use of digital identity and electronic signatures to authenticate cross-border service contracts and invoices. This will reduce reliance on physical documentation and enable faster processing of export-related transactions, including foreign exchange realization and tax compliance.
In the e-commerce space, the government is working with payment system operators to ensure that UPI and other domestic payment rails can be used efficiently for cross-border transactions, particularly for small-value exports. The Reserve Bank of India has reiterated that UPI will remain a zero-cost rail for users, reinforcing the state’s commitment to keeping digital infrastructure open and accessible for all participants, including exporters.
The integration with DPI is also expected to enhance transparency and reduce the risk of fraud in cross-border digital trade. By linking export transactions to verified digital identities and payment trails, the government aims to build greater trust among international buyers and regulators, which could lead to increased market access for Indian service providers and e-commerce sellers.
Capacity building and market access support
Beyond regulatory and procedural reforms, the government has announced a series of capacity-building initiatives to help Indian service providers and e-commerce exporters compete effectively in global markets. These include targeted training programs, market intelligence services, and support for participation in international trade fairs and digital platforms.
The Ministry of Commerce, in collaboration with industry associations and export promotion councils, has launched a new scheme for capacity building in services exports. The scheme will provide financial support for training programs in areas such as digital marketing, international contract management, data privacy, and compliance with foreign regulations. Priority will be given to MSMEs, startups, and women-led enterprises engaged in IT, ITES, design, content creation, and other high-potential services sectors.
For e-commerce exporters, the government is expanding its existing market access support programs to include dedicated assistance for onboarding on global e-commerce platforms. This includes help with product photography, translation of product descriptions, compliance with platform-specific rules, and understanding of consumer protection and data protection requirements in target markets.
The government is also working with Indian embassies and consulates abroad to organize buyer-seller meets and digital trade missions focused on services and e-commerce. These initiatives are intended to create direct linkages between Indian exporters and overseas buyers, reducing dependence on intermediaries and improving profit margins for exporters.
Strengthening institutional mechanisms
To ensure effective implementation of the expanded support measures, the government has strengthened the institutional mechanisms responsible for services exports and e-commerce trade. The Department of Commerce has constituted a dedicated task force on services exports, comprising representatives from relevant ministries, regulators, industry associations, and academia.
The task force has been mandated to monitor the implementation of the new measures, identify emerging challenges, and recommend further reforms as needed. It will also coordinate with state governments to ensure that state-level policies and incentives are aligned with the national framework for services exports and e-commerce trade.
In the e-commerce domain, the government has enhanced the role of the Directorate General of Foreign Trade in overseeing cross-border e-commerce exports. A new e-commerce export cell has been set up within the DGFT to handle policy issues, resolve operational bottlenecks, and provide guidance to exporters and customs authorities.
The government has also directed the Software Technology Parks of India (STPI) to play a more active role in supporting IT and ITES exporters. STPI has been asked to expand its network of technology parks and incubation centers, particularly in tier-2 and tier-3 cities, to promote inclusive growth in services exports. In addition, STPI will organize regular awards and recognition programs for high-performing IT/ITES and electronic hardware exporters, as part of efforts to incentivize excellence in services exports.
Addressing challenges in the services export ecosystem
The expanded support measures come against the backdrop of several structural challenges in India’s services export ecosystem. Recent studies, including a report by the Indian Council for Research on International Economic Relations (ICRIER), have highlighted issues such as low foreign direct investment in certain services sectors, limited marketing and brand building for Indian services, and policy uncertainties that affect investor confidence.
The government has acknowledged these challenges and has indicated that it is working on a broader set of reforms to make India a more attractive destination for services-related investments. This includes reviewing investment protection agreements with key trading partners, improving the regulatory environment for digital services, and enhancing the quality and relevance of higher education and skill development programs in services sectors.
In the context of Special Economic Zones (SEZs), the government has noted that while exports from SEZ-based units have shown an upward trend, there are concerns about low investment in research and development and tight competition from other countries. The Ministry of Commerce and Industry has been working on SEZ reforms for the past three years and is expected to announce further reforms in the coming months, which may include measures to boost services exports from SEZs.
The government has also emphasized the need to address the perception challenges associated with Indian SEZs and services sectors. To this end, it is planning a coordinated international marketing and brand-building campaign to promote India as a reliable and high-quality destination for services outsourcing, digital trade, and e-commerce exports.
Impact on MSMEs and inclusive growth
A key objective of the expanded support measures is to ensure that the benefits of services exports and e-commerce trade reach MSMEs, startups, and entrepreneurs in smaller towns and rural areas. The government has stressed that digital trade has the potential to democratize access to global markets, but only if the right support systems are in place.
To this end, the government is expanding its existing schemes for MSMEs to include specific provisions for services exporters and e-commerce sellers. This includes easier access to credit, simplified tax compliance, and targeted handholding support for first-time exporters. The government is also encouraging state governments to set up dedicated MSME export facilitation centers, which will provide end-to-end support for services and e-commerce exports.
The integration of Primary Agricultural Credit Societies (PACS) with central schemes such as PM-KISAN and PMKSK is also expected to create new opportunities for rural entrepreneurs to participate in digital trade. By improving financial inclusion and digital literacy at the grassroots level, the government aims to enable more small businesses and self-employed professionals to offer services and products to international customers.
Alignment with broader economic and trade policy
The expanded support for services exports and e-commerce trade is closely aligned with India’s broader economic and trade policy objectives. The government has consistently emphasized the need to diversify India’s export basket, reduce dependence on a few sectors and markets, and increase the share of value-added and knowledge-intensive exports.
Services exports, particularly in IT, ITES, and professional services, are seen as a key driver of this diversification strategy. The government has noted that services exports have shown resilience even during periods of global economic uncertainty and have contributed significantly to India’s foreign exchange earnings.
In the e-commerce space, the government views cross-border digital trade as a major growth opportunity, especially for MSMEs and startups. By creating a supportive policy environment, the government aims to position India as a leading hub for digital services and e-commerce exports, complementing its growing strength in goods exports such as electronics, engineering goods, and pharmaceuticals.
Future roadmap and implementation outlook
The government has indicated that the current set of measures is part of a longer-term roadmap to strengthen India’s services export and e-commerce ecosystem. In the coming months, it plans to introduce additional reforms, including further simplification of export procedures, expansion of digital infrastructure, and deeper integration with global digital trade rules.
The Ministry of Commerce and Industry has stated that it will continue to consult with industry stakeholders, state governments, and international partners to refine the policy framework and ensure that it remains responsive to changing market conditions. The government has also committed to regular monitoring and evaluation of the impact of the expanded support measures, with periodic reviews to assess their effectiveness and make necessary adjustments.
Industry representatives have welcomed the expanded support measures, noting that they address several long-standing concerns related to compliance, market access, and infrastructure. However, some stakeholders have also called for more clarity on the implementation timeline and the specific eligibility criteria for various benefits, particularly for MSMEs and first-time exporters.
The government undertakes various measures from time to time to remove operational challenges in export-oriented sectors in consultation with different stakeholders. Such measures, including policy initiatives and regulatory changes, are a continuous process and are introduced in the administration of export promotion schemes as and when needed.
The expanded support for services exports and e-commerce trade reflects the government’s recognition of the growing importance of digital and services-based trade in the global economy. By creating a more enabling environment for Indian service providers and e-commerce exporters, the government aims to unlock new sources of growth, employment, and foreign exchange earnings, while ensuring that the benefits of global trade are widely shared across regions and enterprise sizes.
