In a significant move to boost India’s export ecosystem, the Indian Minister of Commerce and Industry, and Textiles, Piyush Goyal, has announced a new initiative during a meeting with the Export Promotion Councils. Exporters will now be automatically granted ‘Status Holder’ certificates under the Foreign Trade Policy (FTP) 2023, eliminating the need to apply to the Directorate General of Foreign Trade (DGFT).
This landmark decision allows the IT system to issue the export recognition based on the electronic merchandise export data available from the Directorate General of Commercial Intelligence and Statistics (DGCIS) and other associated risk parameters. Previously, exporters needed to file an online application, accompanied by an export certificate from a chartered accountant, to be granted the status. The change introduces a streamlined system where certifications are automatically granted every August, relying on annual export figures from the DGCIS.
For exporters who believe they qualify for a higher status based on additional data not currently captured in disaggregated form, provisions will be in place for online applications to modify their status at a later time, the ministry of commerce and industry said in a media release.
The Status Holder certification enhances the credibility of Indian exporters in global markets. Holders of this certification benefit from various privileges, such as simplified FTP 2023 procedures, priority customs clearances based on self-declarations, exemptions from certain bank guarantees, and more.
This initiative is set to recognise approximately 20,000 exporters under FTP 2023 as Status Holders, a significant increase from the previous figure of 12,518. The largest surge in Status certification is expected in the 1 Star category, which necessitates an export performance of a minimum of $3 million over the last three financial years plus the first three months of the current year. This expanded certification aims to support a broader range of small exporting entities, positioning India to achieve its ambitious export target of $2 trillion by 2030.
The move aligns with the government’s Digital India mission. Various e-initiatives have been rolled out, ensuring permissions and authorisations under FTP 2023 are granted based on a risk management system, self-declarations of the exporter, and eliminating the need for manual processes.
In a significant move to boost India’s export ecosystem, the Indian Minister of Commerce and Industry, and Textiles, Piyush Goyal, has announced a new initiative during a meeting with the Export Promotion Councils. Exporters will now be automatically granted ‘Status Holder’ certificates under the Foreign Trade Policy (FTP) 2023, eliminating the need to apply to the Directorate General of Foreign Trade (DGFT).
