Policy Advocacy
Bharatiya Exporters Forum (BExFo)
Policies and Solutions
The government has been working on several fronts to help achieve India’s export aspirations. The key interventions include negotiating FTAs that provide Indian exporters assured and binding market access, mostly at zero or much reduced duties, in key global markets.
The government has also rolled out a number of schemes that help exporters, especially MSMEs to address issues of access to credit, quality development, marketing and branding, and logistics.
Leveraging Free Trade Agreements (FTAs)
The famous Silk Road and Indian Ocean maritime routes saw a continuous flow of high-value Indian commodities to Rome, Egypt, China, and the Middle East. The primary items that drove this ancient trade surplus included: ● Textiles: Celebrated worldwide, especialy fine muslin, calico, and silk. ● Spices: Malabar pepper (known as “Black Gold”), cardamom, and cinnamon. ● Metallurgy & Artifacts: Famed Wootz steel, ivory carvings, and precious gemstones.
FTAs Potential Advantages
- Guaranteed Duty-Free Access & Policy Stability
Institutionalized duty-free access ensures long-term policy predictability, enabling exporters to secure multi-year contracts with international buyers by offering credible, zero-duty pricing.
- Levelling the Competitive Playing Field
By eliminating tariffs in labour-intensive sectors, India neutralizes the historical price disadvantages faced against competitors like Bangladesh, Vietnam, and Turkey, who benefit from GSP or existing FTA privileges.
- Mitigating Technical Barriers to Trade
Negotiated arrangements that reduce the cost and complexity of compliance by streamlining conformity assessments and international quality certifications.
- Investment Attraction through Policy Certainty
Binding market access commitments create a stable regulatory environment, significantly enhancing the export sector’s appeal for both domestic investment and Foreign Direct Investment (FDI).
- Facilitating the Inflow of Patient Capital
A stable policy framework encourages “patient capital”—long-term, low-interest funding—which is essential for sustainable product innovation and strategic market diversification.
Institutional Support: The Export Promotion Mission (EPM)
- Niryat Protsahan
- Trade Finance: Access to interest subventions for pre- and post-shipment credit and export factoring services to manage liquidity.
- E-Commerce Support: Upfront interest subventions on working capital and inventory funding for goods placed in E-commerce Export Hubs (ECEH) or overseas warehouses.
- Niryat Disha
- TRACE: Support for meeting international technical and sustainability standards.
- LIFT: Freight reimbursements for exporters located in interior or low-export-intensity regions.
- FLOW: Assistance in establishing overseas warehousing and fulfillment centers.
- INSIGHT & MAS: Provision of trade intelligence and subsidized participation in global trade fairs.
Note: These are bolstered by legacy schemes like RoDTEP (tax refunds), EPCG (duty-free capital goods), and the Niryat Bandhu mentorship program.
Going beyond Government support, Indian exporters need to adapt to emerging global trends
- Experiential Consumption: Consumers in wealthy markets are increasingly paying premiums for products with unique “stories”—such as organic, community-based, or culturally significant goods.
- Sustainability & Design: Environmental footprints, aesthetic design, and high-quality packaging are now primary competitive differentiators.
- Direct-to-Consumer (D2C): Global e-commerce allows even micro-businesses to bypass traditional barriers and reach consumers directly.