Industry representatives met with Commerce Minister Piyush Goyal on April 27 to discuss compliance costs and testing requirements for exports [1].
This meeting is critical because high compliance costs and strict testing requirements often act as barriers to entry for micro, small, and medium enterprises (MSMEs) attempting to enter global markets. Reducing these barriers is essential for India's export growth and the competitiveness of its smaller businesses.
During the meeting, exporters highlighted the financial and administrative burdens of meeting international standards. They specifically pointed to the high costs of testing and certification required to enter certain markets, which often place a disproportionate burden on smaller firms. The representatives sought solutions to mitigate these expenses and streamline the process of obtaining necessary approvals.
In response, the Commerce Ministry said the minister has assured continued support, including facilitation and targeted interventions, to reduce entry barriers and enhance ease of doing business [4].
To specifically address the financial burden on smaller exporters, the government will fund a large part of the costs incurred by micro and small exporters to obtain international approvals [5]. This funding is aimed at helping these businesses comply with regulations such as REACH and CBAM in Europe, which are often the same regulations that create the high compliance costs mentioned by the same industry representatives.
Industry representatives said these certifications are often too expensive for small businesses to manage independently. The government's commitment to funding these costs will allow these firms to enter the market without the same financial risk.
Throughout the meeting, the focus remained on the ease of doing business. The goal is to ensure that Indian exporters can compete on a quality level with global competitors, while the government provides the necessary infrastructure and financial support to bridge the gap between domestic production and international requirements.
“The Minister has assured continued support, including facilitation and targeted interventions, to reduce entry barriers and enhance ease of doing business.”
The Indian government's commitment to funding international approval costs for MSMEs represents a shift toward direct financial intervention to combat non-tariff barriers. By targeting specific European regulations like REACH and CBAM, India is acknowledging that technical compliance is now a primary hurdle for its smaller exporters, moving beyond simple tariff reductions to address the complex regulatory environment of those markets.
