From Africa to west Asia, India Post widens e-comm export map as US tariffs bite

The expansion by the world’s largest postal network of its International Tracked Packet Service (ITPS) to non-traditional markets comes in the backdrop of the Indian government planning to soften its stance on e-commerce rules for exports, as it considers allowing foreign direct investment (FDI) in inventory-based e-commerce models, but only for export purposes. India has about 165,000 post offices, including over 149,000 in rural areas and around 15,000 in urban centres.

Currently, India’s FDI rules do not allow foreign-funded e-commerce companies to operate an inventory-based model, under which they own the goods sold on their platforms. They can only operate as neutral digital marketplace platforms. The same restrictions apply to exports—such platforms can facilitate exports by third-party sellers, but cannot export goods on their own account. However, a fully Indian-owned e-commerce company can operate an inventory-based model and sell goods both domestically and overseas, as long as it does not receive foreign investment.

The Centre has amended Schedule III—which deals with postage and fee for international parcels—of the Post Office Regulations, 2024, adding 50 new destinations such as Algeria, Ethiopia, Iceland, Iran, Iraq, Russia, Papua New Guinea and Zambia under the ITPS, expanding its reach to a total of 135 countries, the people cited above said on the condition of anonymity.

“We have expanded the ITPS to 50 new countries, taking the total to 135. It is a very cost-effective service. Under this scheme, people can send consignments of up to 2 kg to most countries and up to 5 kg to select destinations such as the UK, Canada and the US," said Lakshmikant Dash, deputy director general (international relations and global business), Department of Posts.

“The idea is to make it easier for small-ticket e-commerce exporters to send samples and products to as many as 135 countries worldwide. This aligns with the Ministry of Commerce’s objectives and the Prime Minister’s ‘One District One Product’ initiative. ODOP items and GI-tagged products, which have strong overseas demand, can be easily exported using this service," said Dash.

The ITPS is an India Post service that enables tracking-enabled, low-weight international shipments and is widely used by small exporters and e-commerce sellers for overseas deliveries.

The ministry of commerce is working on a plan to set up about 50 e-commerce export hubs over the next five years under a public-private partnership (PPP) model to tap export potential, given that India currently has a limited presence in global e-commerce exports, said the first of the two persons cited earlier.

India Post will play a key role in the plan, as extending the ITPS to non-traditional markets is meant to help boost e-commerce exports to largely unexplored destinations, this person said.

Among the newly added destinations, India Post has notified rates of ₹285 plus ₹50 for Afghanistan, ₹285 and ₹55 for Algeria, ₹280 and ₹50 for Ethiopia, ₹350 and ₹50 for Iceland, ₹275 and ₹45 for Iran, ₹285 and ₹45 for Iraq, ₹245 and ₹30 for Russia, ₹300 and ₹65 for Papua New Guinea, ₹195 and ₹15 for Maldives, and ₹285 and ₹55 for Zambia.

The first rate applies to the base weight slab of the international tracked packet, while the second rate is charged for each additional weight slab.

Industry experts said that strengthening logistics and widening market access will be critical for scaling up India’s e-commerce exports, particularly for small and medium businesses.

“India’s e-commerce exports remain far below their potential, and expanding access to affordable logistics is key to changing that. India Post’s wide network and low-cost international shipping can help MSMEs (micro, small and medium enterprises) and small sellers enter new markets and scale up cross-border e-commerce exports," said Abhash Kumar, a trade economist and assistant professor of economics at Delhi University.

“As India’s e-commerce ecosystem continues to expand beyond domestic borders, the extension of India Post’s network to international destinations is a notable development in the evolving trade landscape. Expanding cross-border access for MSMEs engaged in cross-border trade strengthens India’s participation in global commerce," Balfour Manuel, managing director of logistics and courier services company Blue Dart, said. "Blue Dart, the broader logistics ecosystem, and industry partners will play an active role in supporting MSMEs engaged in cross-border trade through reliable networks, infrastructure strength, and service capability. Continued investments across the sector will help create a more inclusive and resilient trade environment, enabling enterprises across regions to access global markets with greater ease, predictability, and confidence."

In a statement in December 2025, Amazon said it has helped Indian sellers cross $20 billion in total exports, including nearly $7 billion in the current year, as exporters adjust to new US import tariffs imposed in August. The company said it is targeting $80 billion in exports by 2030, driven by global demand for products such as cosmetics, toys, furniture and apparel.

The government's latest move is expected to benefit MSMEs and producers of consumer goods such as apparel and handicrafts by allowing them to ship products at more competitive prices using India Post’s services, while also supporting job creation, said the second person.

“India’s export potential through e-commerce is significant, particularly for MSMEs, artisans and niche manufacturers, as digital platforms allow them to access global markets without large investments in overseas distribution. E-commerce lowers entry barriers, enables direct-to-consumer exports and allows Indian products—from handicrafts and textiles to wellness and specialty foods—to compete on quality rather than scale," said Jaijit Bhattacharya, founder and president of the Centre for Digital Economy Policy Research (C-DEP).

India Post plays a key enabling role in this ecosystem. With its wide last-mile reach, affordable international shipping and simplified documentation support, India Post connects small producers with global buyers and makes cross-border e-commerce viable even for the smallest enterprises, Bhattacharya said.

"Due to the worldwide demand for reasonably priced, high-quality ‘India-made’ goods, India has immense export potential through e-commerce, encompassing toys and more. Logistics and last-mile delivery are essential to maximizing this opportunity. India Post can be a revolutionary partner in this situation because of its unmatched reach into urban, semi-urban, and rural India," Vivek Singhal, co-founder and chief executive officer, BIDSO, a B2B toys manufacturer, said. "India Post can assist small and medium-sized businesses in expanding their exports without incurring high logistical costs by providing dependable, economical international shipping, reasonable parcel rates, and integrated customs-friendly solutions."

According to an Invest India report, the country’s e-commerce market is set to grow to $325 billion, while the digital economy is projected to reach $800 billion by 2030.

Invest India is the country's investment promotion and facilitation agency, set up in 2009 as a not-for-profit company under the department for promotion of industry and internal trade (DPIIT), ministry of commerce and industry.

The global e-commerce market was valued at about $26.8 trillion in 2024 and is projected to swell to $214.5 trillion by 2033, as per Mordor Intelligence.

India Post is running several initiatives to promote exports, particularly for small businesses and e-commerce sellers. A key programme is the Dak Ghar Niryat Kendras, which allow MSMEs, artisans and rural producers to export directly through local post offices by offering simpler documentation, postal bills of export and integrated customs clearance.

Additionally, India Post has partnered with private logistics platforms to strengthen last-mile connectivity, technology integration and fulfillment for e-commerce exports, helping small exporters reach overseas markets at lower cost.

In December 2025, the Department of Posts signed a bilateral agreement with Russia Post to strengthen the ITPS between the two countries to promote e-commerce trade.