Tariff War Widens Export Window For Indian e-com Sellers

New Delhi: The US tightening of low-value e-commerce shipments from China has opened up huge opportunities for Indian online exporters, as they can fill the gap if the red tape is eased and the government provides timely support, think tank GTRI said on Sunday.

With over 1 lakh e-commerce sellers and $5 billion in current exports, India is well-positioned to fill the gap left by China particularly in customized, small-batch products like handicraft, fashion, and home goods, the Global Trade Research Initiative (GTRI) said. From May 2, Chinese and Hong Kong e-commerce shipments under $800 to the US will face a steep 120 per cent import duty, ending their duty-free entry. This move is expected to disrupt Chinese supply chains and open the door for other countries. Chinese firms Shein and Temu are major players in the sector. Over 1,400 million low-value packets entered the US in 2024 from the world, with China alone exporting $46 billion worth of such goods.

“India is well-positioned to fill the gap left by China particularly in customized, small-batch products like handicraft, fashion, and home goods, but only if it quickly fixes bottlenecks in banking, customs, and export incentives,” GTRI Founder Ajay Srivastava said adding seizing this opportunity requires urgent reforms.