Industry executives said the earlier cap forced exporters to artificially split shipments, increasing compliance burden, costs, and delivery timelines, particularly for high-value or bundled products. The move, they said, would allow Indian sellers to scale international shipments more efficiently and improve unit economics.
The reform was announced in the Union Budget 2026, with Finance Minister Nirmala Sitharaman saying the government would completely remove the current value cap to support small businesses, artisans and startups seeking to access global markets through e-commerce. She added that the handling of rejected and returned consignments would also be improved through technology-led identification systems.
Logistics major DTDC Express said the change positions logistics as a strategic pillar of India’s economic growth. Abhishek Chakraborty, chief executive officer (CEO) of DTDC, said the reform would enable companies to optimise routing, improve delivery timelines and expand reach, especially for MSMEs.
Tanmay Kumar, chief financial officer at Shiprocket, said the move removes artificial thresholds that had limited smaller sellers. “This is a decisive step that allows small businesses and startups to scale international shipments without operational distortions, making cross-border e-commerce far more accessible,” he said.
He added that technology-enabled customs processes and better handling of returns would reduce friction and encourage formalisation of export activity among digital-first brands.
E-commerce platforms also see the reform as a boost for Indian consumer brands. Achint Setia, CEO of Snapdeal, said the Budget improves the operating environment through faster tax dispute resolution and simpler compliance processes, lowering execution risk for growing online businesses.
Fintech players said the measure could structurally shift the economics of cross-border trade. Prachi Dharani, co-founder and CEO of PayGlocal, said the move creates a foundation for higher-value exports, stronger unit economics and larger average ticket sizes.
Beyond courier reforms, industry executives welcomed investments in logistics infrastructure, including new freight corridors, inland waterways and coastal shipping, which they said would complement the growth of cross-border digital trade.
Kapil Makhija, managing director and CEO of Unicommerce, said the move reflects the government’s broader push towards an export-oriented economy. “The removal of the courier export cap is a timely boost for cross-border e-commerce, easing trade friction and enabling MSMEs and digital brands to scale globally,” he said.
Academics said the shift reflects a more mature startup policy approach. Vishwanathan Iyer, professor at Great Lakes Institute of Management, Chennai, said the government is increasingly focusing on scale, exports and financing infrastructure rather than expanding tax incentives.
In 2023, the government had launched the Foreign Trade Policy, under which it had raised the consignment wise cap on e-commerce exports through courier from ₹5 lakh to ₹10 lakh.
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