Why most commerce ministries are working on models to explore B2B exports through MoUs and trade pacts with major online marketplaces like Amazon in India, and Tradeling.com in UAE?
The reason is simple, it is to ensure that more geographies within the country benefit from external trade. It also gives a greater push to ground-level export-boosting schemes like the Export Hub Scheme (DEH) recently launched by the Department of Commerce in India.
The collaboration also introduces efficiency in linking local producers to global supply chains. This brings overall productivity to all the stakeholders within the export-led ecosystem.
How online marketplaces are influencing Public Policy?
Building international sales infrastructure can be quite complex. All high-performing online marketplace players understand this fact. This is the main reason why Amazon India has created departments like Amazon Public Policy; currently being headed by Mr. Chetan Krishnaswamy. Or Amazon Global Trade Division; headed by Mr.Wakankar. Both gentlemen are working on prime objectives to influence policy at the government level to grow B2B exports.
It is not only India that is looking at such a global initiative. In UAE Dubai Airport Freezone Authority (DAFZA), is working hand in hand with B2B export online marketplace like Tradeling at the policy level. The policy agreement has also been endorsed by the Dubai Free Zones Council, chaired by His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman of Dubai Airport Freezone Authority.
Tradeling, led by startup veteran Muhammad Chbib as Chief Executive Officer, and Mohamed Meabed as Chief Technology Officer, focuses on unlocking the value of the digital economy and creating a vibrant e-marketplace for businesses across the MENA region and beyond.
Where do we stand today?
Directorate General of Foreign Trade (DGFT) in India has already signed a Memorandum of Understanding with Amazon to co-create capacity-building sessions, training, and workshops for small and medium producers in districts identified by the government.
Similarly, other ministries in India are exploring similar agreements with other e-commerce giants like Shiprocket, Shopclues, Rivexa, and DHL Express to give B2B export sales a major push at the rural or district level.
The objective is to utilize the specific strength of each district and ensure more areas are benefitted countrywide, rather than limiting B2B export sales to a few major metro cities.
Tradeling in the UAE is also building an ecosystem of logistics, legal and financing solutions in coordination with relevant ministries in the UAE. This ensures a reliable and smooth trade process for importers and exporters throughout the GCC region in the B2B segment.
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