A Simplified, Accurate Guide Based on the Official DGFT Handbook
India’s export ecosystem is undergoing a structural shift. While traditional exports remain important, cross-border e-commerce has emerged as one of the most accessible and scalable export pathways for MSMEs, artisans, manufacturers, and niche product sellers.
This guide is a simplified, practical interpretation of the official DGFT E-Commerce Exports Handbook, written specifically for Indian MSMEs who are new to exports and want to understand what to sell, how to sell, how to comply, and how to get paid without jargon or assumptions.
Table of Contents
Why Cross-Border E-Commerce Exports Matter for Indian MSMEs
India has set an ambitious target of USD 1 trillion in merchandise exports by 2030, requiring a sustained annual growth rate of over 12%. To achieve this, export growth must come from new and emerging channels, not only large exporters.
According to the Directorate General of Foreign Trade (DGFT):
Global cross-border e-commerce trade is expected to reach USD 800 billion by 2025
It is projected to cross USD 2 trillion by 2030
E-commerce exports are expected to account for ~6.6% of global merchandise trade
For MSMEs, this channel offers direct access to global consumers, without the cost and complexity of traditional export models.
What Is Cross-Border E-Commerce Export?
Cross-border e-commerce export refers to selling goods directly to international customers using online platforms, where:
Products are listed digitally
Orders are received online
Payments are collected electronically
Logistics, customs clearance, and delivery are handled via postal, courier, or integrated logistics partners
Unlike traditional exports, e-commerce exporters do not need overseas distributors or physical offices abroad.
DGFT highlights that e-commerce platforms often provide integrated services, including:
Cataloguing and product listing
Marketing and visibility
Payment collection and reconciliation
Logistics pickup and delivery
Who Should Consider E-Commerce Exports?
This model is particularly suitable for:
MSME manufacturers producing value-added or niche products
Artisans, weavers, and handicraft clusters
D2C brands and home-grown labels
Traders with differentiated sourcing
Small businesses wanting to test international demand before scaling
DGFT explicitly positions artisans, craftsmen, weavers, and MSMEs as priority beneficiaries under Foreign Trade Policy 2023 .
What Products Are Suitable for E-Commerce Exports?
The DGFT handbook recommends focusing on India’s inherent strengths, where global demand already exists and Indian products are recognised. High-Potential Export Categories from India (as identified by DGFT):
Textiles, handloom, and apparel
Leather and leather goods
Handicrafts and home décor
Beauty, personal care, and herbal products
Semi-precious jewellery and accessories
Automotive and engineering parts
AYUSH and herbal products
Spices, tea, coffee, and food products
Religious and cultural artefacts
Key guidance: Exporters should study pricing, demand, and competition directly on international e-commerce platforms before selecting a product.
Where and When to Sell Internationally
Priority Markets for Indian MSME E-Commerce Exports, DGFT identifies strong demand in:
USA
UK
Germany, France, EU
UAE and Gulf countries
Japan, Australia, Canada
A critical insight from the handbook is the importance of Indian diaspora-driven demand, especially for:
Food products
Apparel
Religious and festive items
Handicrafts and cultural products
Sales Timing Matters
E-commerce exports perform significantly better when aligned with:
Global sales events (Black Friday, Cyber Monday, Singles’ Day)
International festivals (Christmas, Easter, Chinese New Year)
Indian festivals (Diwali, Raksha Bandhan, Eid)
Pricing Strategies for Global E-Commerce
DGFT outlines six commonly used pricing strategies for exporters:
Cost-based pricing – ideal for beginners
Price skimming – for innovative or unique products
Penetration pricing – to enter competitive markets
Market-oriented pricing – aligned with competitors
Charm pricing – psychological pricing (e.g., $9.99)
Anchor pricing – using reference pricing to influence perception
Important: Pricing must account for platform fees, logistics costs, duties, and returns.
Mandatory Registrations and Documentation
Before starting, an MSME must ensure the following are in place:
Core Requirements
PAN in the business name
Current bank account
GST Registration
IEC (Import Export Code) from DGFT
Banking & Compliance
AD Code linked to the exporter’s bank branch
Correct ITC(HS) classification for the product
Product-specific certifications (FSSAI, APEDA, CDSCO, BIS, etc.), if applicable.
Packaging, Shipping, and Logistics
DGFT emphasises that packaging quality and compliance are non-negotiable in e-commerce exports. Packaging must:
Prevent tampering
Withstand climate and transit stress
Protect handlers and other parcels
Allow space for labels, barcodes, and declarations
Shipping Options
Exporters can ship via:
1. Postal Route
India Post
Dak Niryat Kendras (DNKs)
Foreign Post Offices: Used widely for parcels up to 2 kg, covering 200+ countries
2. Courier Route
Authorised courier partners
Filing via Express Cargo Clearance System (ECCS)
CSB-IV (samples) and CSB-V (commercial shipments)
Payments, Forex, and Refunds
Payment Realisation Rules (RBI)
Export proceeds must be realised within 9 months
For overseas warehouses: 15 months
Extension possible via AD Category-I banks
IGST Refunds
Exporters are eligible for IGST refunds by:
Filing GSTR-1 (Table 6A)
Ensuring shipping bill and invoice data match
Handling Returns and Re-Imports
DGFT and Customs allow structured re-imports:
Same IEC
Same courier terminal
Courier Bill of Entry filed electronically
Special provisions exist for jewellery and certain regulated products under Courier Amendment Regulations, 2022
Selling Through Social Commerce
The handbook explicitly encourages exporters to use:
Instagram Shops
WhatsApp Business
Facebook Marketplace
Telegram channels
These platforms help:
Build trust
Reach diaspora buyers
Generate repeat demand
Final Perspective for MSMEs
Cross-border e-commerce is not a shortcut, but it is the lowest-risk entry point into global trade for Indian MSMEs. Success depends on:
Choosing the right product
Understanding compliance early
Pricing realistically
Executing logistics cleanly
Staying aligned with DGFT, Customs, GST, and RBI guidelines
For MSMEs willing to learn and execute patiently, e-commerce exports can become a sustainable global revenue channel.
Official Reference
This guide is based on the DGFT – E-Commerce Exports Handbook for MSMEs, Ministry of Commerce & Industry, Government of India.
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Disclaimer
This article is a simplified summary of the official DGFT Handbook on Cross-Border E-Commerce Exports for MSMEs. It is intended only for educational purposes and does not replace the official handbook, notifications, or legal guidance issued by the Government of India. Readers are advised to refer to the original DGFT document and conduct due diligence before making any business or compliance decisions.