India plans to create an exporter performance index that will assess firms using their Importer Exporter Codes (IECs) and track results over a five-year period, Director General of Foreign Trade Ajay Bhadoo said on Wednesday. The move forms part of a wider push to make export promotion data-driven and to broaden market access for Indian firms.
India exporter performance index will inform policy
Bhadoo said officials hope to compile the necessary data over the coming year so the index can be used to accelerate diversification into new markets and to encourage more businesses to export. By linking performance to IECs, the government intends to identify persistent exporters, those who have slipped away, and potential entrants that could be supported to scale up.
The announcement comes as New Trade Policy measures steer India away from direct export subsidies. “Not subsidising exports, FoB subsidy done away with under New Trade Policy,” Bhadoo said, noting that the administration has opted instead for duty remission mechanisms designed to ensure exports are not burdened by domestic taxes.
Programmes such as the Remission of Duties and Taxes on Exported Products (RoDTEP) and the Advance Authorisation scheme remain central to support for exporters, the DGFT said. These tools reimburse or exempt export consignments from domestic levies, preserving competitiveness while remaining consistent with international rules.
Bhadoo also signalled ongoing reforms to Special Economic Zones, indicating that policymakers are reviewing multiple instruments to improve the overall export ecosystem. “SEZ reforms underway,” he said, adding that the exporter index could become a key instrument for policy calibration once sufficient data is available.
Officials acknowledged limitations in responding to external trade pressures. Bhadoo warned that India cannot fully counter very high foreign tariffs, noting that tariffs above 50 per cent are effectively beyond the scope of direct policy retaliation. At the same time, measures taken at home should not always be read as direct responses to overseas actions.
The exporter performance index is intended to support a longer-term export promotion mission that addresses structural challenges faced by Indian firms. By providing a clearer picture of export activity across sectors and regions, policymakers hope to tailor interventions such as preferential market access, free trade agreement engagement, and targeted reimbursements.
Analysts said a robust index could assist in prioritising markets for engagement, spotting supply-chain weaknesses and recognising firms that would benefit most from capacity building. For new or smaller exporters, more precise targeting of incentives and advisory support could lower the barriers to entering overseas markets.
Bhadoo indicated the index will not be an overnight solution but, once populated with five years of data, it should serve as a practical tool for refining export policy. The DGFT’s approach emphasises measurement and targeted support rather than broad-based subsidies, aligning India more closely with global trade norms while seeking to boost the competitiveness of its exporters.
Key Takeaways:
- India will develop an exporter performance index using Importer Exporter Codes, tracking firms over five years to inform policy.
- The index aims to accelerate market diversification and encourage new exporters by identifying strengths and gaps.
- Policy focus has shifted from export subsidies to duty remission and RoDTEP, with SEZ reforms under way.
- The India exporter performance index will be compiled over the next year and should help calibrate export support tools.
