Merit-based approach needed for export promotion council membership: Industry observers

Raising the threshold for Recognized Chambers and Associations (RCMC) exemptions offers relief to small-scale exporters grappling with compliance burdens, but the broader question of whether participation in Export Promotion Councils (EPCs) should be compulsory to access government trade benefits remains unresolved, according to trade observers.

The exemption threshold increase streamlines regulatory requirements for smaller businesses by reducing paperwork and administrative overhead. However, officials and industry representatives suggest that linking access to trade-policy advantages with mandatory EPC membership may inadvertently create barriers for exporters who choose alternative routes to market development.

Trade analysts argue that membership should be driven by genuine business value and performance incentives rather than regulatory compulsion. When exporters perceive EPCs as genuinely beneficial platforms offering substantive support—networking opportunities, market intelligence, and capacity-building—participation naturally increases without mandates.

The debate reflects broader concerns about balancing regulatory efficiency with business flexibility. Stakeholders contend that a framework rewarding demonstrated export performance and voluntary engagement could be more effective than one rooted in compliance requirements.

Government officials have indicated openness to reviewing the current framework, suggesting that a comprehensive assessment of EPC membership policies may be warranted to better align incentive structures with actual exporter needs and India's trade objectives.