Indian e-commerce companies are able to beat China in terms of tariffs

US tariffs have opened major opportunities for Indian online exporters on low-value e-commerce imports from China, which can proceed in the field when the government provides timely support.

Research Institute Global Trade Research Initiative said that with more than one lakh e-commerce vendors and existing exports of $ 5 billion, India is in good position to fill the differences left by China, especially in the field of customized, small batch products such as handicrafts, fashion and household items.

From May 2, the US will impose a huge tariff of 120% on e-commerce exports worth less than $ 800 from China and Hong Kong, which will eliminate their fee-free admission. The move is expected to disrupt China’s supply chain and open doors to other countries.

Chinese companies Sheen and Temu are the main players in the region. In 2024, packages worth more than $ 1.4 billion from around the world arrived in the US, in which China alone exported such goods worth $ 46 billion.

India is in a good position to bridge this difference, especially in the field of small products such as handicrafts, fashion and household items, if it can quickly remove obstacles in banking, customs and export enrichment. India’s current trading system still prioritize large, traditional exporters, not small online vendors.

Indian banks are having difficulty handling the high amounts and low value of e-commerce exports. RBI rules allow only 25 percent difference between declared import price and final payment, which is very strict for online exports, where discounts, returns and platform charges often cause major differences.