Shiprocket X, a cross-border shipping product of Shiprocket, India’s largest e-commerce enablement platform, recently released its survey study, ‘The State of Cross-Border Trade’.
The study uncovered some interesting global insights, including India’s ranking of ninth in global cross-border growth. India’s total merchandise exports exceed US$100 billion for the second consecutive quarter, totalling US$105.8 billion in Q3 (October-December) of 2022.
Some of the primary drivers of this expansion include a massive post-pandemic push that forced businesses to abandon traditional brick-and-mortar stores and embrace e-commerce both locally and globally. Other catalysts included consumers’ active participation in shopping with global retailers.
Simplifying cross-border trade has been a high focus for the Indian government because it accounts for 20% of global e-commerce and is a key predictor of the country’s EoDB (ease of doing business), according to the study.
The Indian government has supported the growth of the Indian export sector, which generated total export revenue of US$417 billion in FY 22. Also,15 new clusters have been added.
Merchandise exports increased across the country, with Gujarat contributing the most to India’s total exports, followed by Rajasthan and Delhi. These figures indicate a robust demand for Indian products traded across borders.
“We have witnessed firsthand, the tremendous potential of Indian MSMEs in driving cross-border trade, and hence, at the core of Shiprocket lies the passion to empower the merchants of BHARAT. This survey is a step forward in that direction and helps us decode the challenges and the expansion opportunities for Indian e-commerce brands,” stated Akshay Ghulati, Co-Founder, Strategy & Global Expansion, Shiprocket.
With the increasing acceptance of Indian products in the worldwide retail market, MSME exports are driving 40% of India’s overall exports, accounting for around 6.22% of the country’s GDP.
MSME exports, with over 63.4% million units dispersed across India’s geographical expanse, would act as a catalyst in rebuilding the strength of the Indian economy. According to a study report published by the industry group FISME, the potential for e-commerce exports is in the range of US$200 to US$300 billion by 2030.