Politics · India Bureau
India relaxes export house norms to boost overseas trade participation
The government has eased eligibility criteria for the 'One Star Export House' status, allowing exporters to qualify with performance records from just two of the preceding three financial years instead of all three. The move aims to encourage greater participation in India's export sector.
LSN India ·
India's Directorate General of Foreign Trade (DGFT) has amended foreign trade policy provisions to lower barriers for exporters seeking 'One Star Export House' recognition, a status that confers various trade benefits and incentives.
Under the revised norms announced Friday, exporters must now demonstrate requisite international trade and financial performance metrics in any two of the three preceding fiscal years, rather than maintaining consistent performance across all three years as previously mandated. This relaxation applies to all export sectors except gems and jewellery, which operates under a separate two-year requirement framework established under the Foreign Trade Policy 2023.
The policy amendment is designed to streamline the certification process and make export house status more accessible to a broader range of trading entities. Industry observers expect the eased criteria to facilitate smoother entry into formal export categories and reduce documentation burdens for eligible firms.
The 'Star Export House' designation is part of India's tiered export recognition system, which provides qualified businesses with preferential treatment regarding customs clearance, simplified procedures, and enhanced credit facilities. The DGFT periodically reviews these eligibility standards to align policy objectives with evolving export sector dynamics.