Union Government Launches Automated Certification for Indian Exporters

October 10, 2023

In a significant move aimed at reducing transaction costs and enhancing the ease of conducting business, the Indian government has introduced an automated system for granting credibility to Indian exporters in international markets. This new initiative was launched by Commerce and Industry Minister Piyush Goyal as part of the Foreign Trade Policy 2023.

Expanding the Ranks of Status Holders

Under this initiative, the government plans to recognize approximately 20,000 Indian exporters as “Status Holders,” a significant increase from the previous count of 12,518 exporters. This development was unveiled during a meeting with export promotion councils, according to a statement from the Ministry of Commerce and Industry.

Boosting Credibility in International Markets

The Status Holder certification program plays a crucial role in bolstering the credibility of Indian exporters in international markets, making it easier for them to establish their presence and conduct business globally.

Real-time Recognition for Exporters

One of the most exciting aspects of this new initiative is the real-time recognition it offers to exporters. A. Sakthivel, President of the Federation of Indian Export Organisations, highlighted the benefits, stating that “over 15,000 exporters will benefit from this facility, receiving recognition ranging from 1 Star to 5 Stars in real-time.”

Simplified Application Process

Previously, exporters were required to file an online application for status certification, accompanied by an export certificate from a chartered accountant. This certification was typically granted annually in August, based on the exporters’ annual export figures. Exporters eligible for a higher status based on additional export data related to services export, deemed exports, or double weightage to Micro, Small, and Medium Enterprises (MSMEs) could apply online for a status modification at a later date.

Automation Simplifies the Process

Now, with the automation of the system, exporters will no longer need to apply to the Directorate General of Foreign Trade (DGFT) for a Status Certificate. Instead, the IT system will assess their eligibility based on available Directorate General of Commercial Intelligence and Statistics merchandise export electronic data and other risk parameters, providing export recognition more efficiently and promptly.

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