Indian exporters are currently navigating a complex international trade landscape, with European Union regulations posing significant challenges. The Ministry of Commerce and Industry informed Parliament that Indian businesses exporting to the EU must comply with non-tariff measures, particularly the REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals) regulations. These requirements apply to all commodities containing chemical substances, adding compliance costs and procedural hurdles for exporters across multiple sectors.
The EU’s strict regulatory framework has created both operational and financial challenges for Indian businesses, especially small and medium-sized enterprises (SMEs) that rely heavily on exports for revenue. Analysts note that ensuring compliance with REACH involves extensive documentation, testing, and monitoring of chemical content in products, which can slow down trade and increase costs. However, Indian exporters continue to adapt by improving quality standards, investing in testing infrastructure, and seeking government support to mitigate compliance challenges.
On the domestic front, the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme has emerged as a key support mechanism for exporters. In the fiscal year 2025-26, over 1.1 lakh exporters benefited from the scheme, receiving a total remission of ₹15,756.96 crore. The scheme reimburses exporters for embedded taxes and duties that were not previously refunded, thereby improving the competitiveness of Indian goods in international markets. Government officials highlighted that the RoDTEP program not only eases financial burdens but also encourages growth in sectors ranging from textiles and engineering goods to chemicals and agricultural products.
Trade data indicates that India’s imports from China have shown a slowdown in recent months. This trend may be attributed to a combination of global supply chain disruptions, domestic substitution strategies, and a focus on diversifying sources of imports. For exporters, this situation presents both challenges and opportunities, as reduced dependency on China could open avenues for alternative sourcing and cost management strategies.
Experts emphasize that while non-tariff barriers like EU regulations remain complex, government schemes such as RoDTEP provide tangible support to exporters. By combining regulatory compliance measures with financial incentives, Indian businesses are better positioned to expand their global presence. Policymakers continue to engage with industry stakeholders to streamline procedures and enhance export competitiveness, ensuring that Indian exporters remain resilient in the evolving international trade environment.
Overall, the combination of EU regulatory compliance and domestic support schemes like RoDTEP shapes the current export scenario. Indian exporters must balance international regulatory requirements with domestic incentives to maintain growth and sustain India’s position in global trade.
