Government to Fund Up to 75% of Global Compliance Costs for Micro and Small Exporters Under ₹25,060 Crore Export Promotion Mission

New Delhi, February 23: The government has announced financial support for micro and small exporters to help them secure international approvals and meet regulatory requirements such as Europe’s REACH and CBAM norms. The move is aimed at strengthening India’s export competitiveness and helping businesses navigate non tariff barriers in global markets.

Commerce and Industry Minister Piyush Goyal said that under the ₹25,060 crore Export Promotion Mission, the government will fund a significant portion of compliance and certification expenses incurred by exporters.

Financial Support Under TRACE Measure​

The assistance will be extended through the Trade Regulations, Accreditation and Compliance Enablement initiative, also known as TRACE, under the Export Promotion Mission.

Under this framework:

• Exporters can receive partial reimbursement of up to 75 percent of eligible testing, inspection, and certification costs.
• The support is capped at an annual ceiling of ₹25 lakh per Importer Exporter Code.

The minister stated that wherever exporters require international approvals, particularly micro and small units, the government will fund the approval process irrespective of cost, with a substantial portion borne by the Centre.

The support specifically covers compliance with:

• REACH regulation in Europe
• CBAM verification related to carbon border adjustment duties

Easing Compliance With REACH and CBAM​

REACH is a European Union regulation governing the manufacture and import of chemical substances. Exporters must meet strict testing and certification standards to access EU markets.

CBAM, or the Carbon Border Adjustment Mechanism, is an import duty imposed on products manufactured with carbon emissions. It applies to sectors such as iron and steel, and aims to reduce carbon leakage by taxing imports based on their embedded emissions.

By subsidizing verification and certification costs, the government intends to lower the financial burden on exporters and reduce exposure to carbon related duties in Europe.

Focus on Quality and Process Improvement​

Addressing the national quality conclave, Goyal emphasized the need for exporters, especially in labor intensive sectors, clusters, and MSMEs, to strengthen process discipline and product standards.

He urged businesses to focus on five key pillars for improving quality:

• Adherence to standard operating procedures in production
• Workforce skilling and reskilling
• Robust testing and certification practices
• Shared infrastructure
• Continuous inspection and production control from raw material stage to final sale

He highlighted that consistent quality control throughout the production cycle is essential for both domestic and international competitiveness.

Leveraging Free Trade Agreements​

The minister noted that India’s global trade outreach will benefit from nine free trade agreements finalized in the last four years. He said the country has concluded trade deals with the European Union, New Zealand, Oman, and the United Kingdom.

He appealed to exporters to take full advantage of these agreements by upgrading capabilities and aligning with global standards.

Export Growth and USD 2 Trillion Target​

On the export outlook, Goyal said India is on track to achieve a USD 2 trillion target in goods and services exports within the next six to seven years. The target was earlier set for 2030.

He added that exports are already showing strong momentum, with double digit growth recorded during the first two weeks of February.

The financial support under the Export Promotion Mission is expected to ease compliance costs, enhance global market access, and strengthen India’s position in international trade.