New Delhi, Sept. 4 -- Merchandise exports are crucial for India's economic trajectory. Yet, in 2024-25, these stood at just $437.42 billion, a mere 0.08% rise from the previous year, even as global trade expanded 3.7%. At a time when India is aspiring for a $5 trillion economy, such sluggish growth is a red flag. Policy reforms aimed at increasing India's share in global e-commerce exports is a key area for the government to focus on.

commerce is an underleveraged export opportunity. But Indian policies stifle this potential. Since 2018, India has prohibited foreign direct investment (FDI)-backed e-commerce platforms from holding inventory. The restriction was designed to shield domestic traders from intense competition in local markets ...