Delhi e-commerce DC puts DHL on track for €250 million India investment

The opening of a DHL eCommerce distribution center in Delhi marked a milestone in DHL’s plan to invest €250 million in India’s e-commerce sector by 2020. DHL said it regards India as one of its most critical markets for e-commerce, and is moving fast to capture market share.

“India is one of the top ten e-commerce markets and the fastest-growing globally, with e-commerce expected to grow at a [compound annual growth rate] of 31 percent to reach €2 billion by 2020,” said Malcolm Monteiro, CEO of DHL eCommerce Asia-Pacific. Monteiro said he expects DHL’s global network will make the company an important player in cross-border e-commerce.

The Delhi Distribution Center (DC) enables end-to-end logistics for e-commerce and puts Indian retailers in contact with global markets, with DHL-operated fulfillment and delivery to markets such as the United States and Europe.

On the compliance side, India’s government has implemented reforms that make cross-border e-commerce an attractive proposition. The recently enacted Goods and Services Tax (GST) introduced a new regime of tax compliance, including a tax model “based on data communication between a business as the taxpayer and the GST Network (GSTN) organization,” according to business software firm SAP. This simplifies the taxation process, increases transparency and compliance, and will unify the country as a single market, SAP added.

India’s growing e-commerce market, coupled with the government’s implementation of tax reform and greater ease of claiming benefits like the Merchandise Exports from India Scheme (MEIS) for cross-border shipments, have “made e-commerce exports more attractive and business-friendly than ever before,” said Suraj Bangera, country director, DHL eCommerce India.

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