Government plans exporter performance index, signals no return to subsidy-based support

India is developing a new exporter performance index to assess the track record of exporters using their Importer Exporter Codes (IECs), as the government pivots toward data-led export promotion and market diversification, Director General of Foreign Trade (DGFT) said.

The proposed index will evaluate exporter performance over a five-year period and is intended to help policymakers better understand export trends, identify growth-oriented firms, and encourage expansion into new markets. The exercise could take about a year to compile sufficient data, after which the index could be used to support targeted policy interventions aimed at broadening India’s export base.

India will not revive export subsidy regimes that conflict with global trade rules. Under the current Foreign Trade Policy, direct subsidies linked to export value — including free-on-board (FoB) incentives — have been discontinued as part of efforts to align with World Trade Organization norms.

Instead of subsidies, the government is focusing on tax-neutrality mechanisms to ensure that exports are not burdened with domestic levies.  The duty remission systems, which refund taxes embedded in exported goods, remain a legitimate and compliant form of support. He added that reforms to the Special Economic Zone (SEZ) framework are also underway to improve their effectiveness and global competitiveness.

DGFT cautioned against viewing certain policy initiatives as reactive measures to external pressures. He said some steps, including specific inventory-related provisions under the export promotion mission, should not be interpreted as direct responses to recent tariff actions by trading partners such as the United States.

The government’s export promotion mission is designed to tackle long-standing structural challenges that exporters have faced, rather than provide short-term relief. The broader support framework includes trade agreements, policy reforms, preferential market access initiatives, and facilitation measures aimed at improving competitiveness.

Existing schemes such as the Remission of Duties and Taxes on Exported Products (RoDTEP) and the Advance Authorisation programme will continue, he said, ensuring exporters are reimbursed for eligible duties and input taxes.

DGFT added that once operational, the exporter performance index could become a valuable tool for fine-tuning export policy, enabling more evidence-based decisions to strengthen India’s position in global trade.