India’s $2 trillion export ambition hinges on fixing compliance

By Admin

02 Jul, 2025

India has set its sights on a bold and ambitious goal achieving $2 trillion in exports by 2030. With global demand on the rise, Indian businesses embracing digitisation, and international interest in Indian goods increasing, the vision doesn’t seem out of reach. However, one silent, often underestimated challenge threatens this progress: compliance.

Not the principle of compliance because a well-regulated trade ecosystem is essential but the execution of it. Today’s compliance system is fragmented, opaque, and slow. For exporters, especially Micro, Small and Medium Enterprises (MSMEs), it has become a painful bottleneck that can make or break business success.

The New Face of Indian Exports

India’s export landscape is changing rapidly. It’s no longer just about large manufacturers or big conglomerates. Modern exporters include solo artisans in Kochi selling candles on Etsy, apparel manufacturers in Surat fulfilling US-based orders via Amazon, and Jaipur-based jewellery brands scaling globally through Instagram and Shopify. These entrepreneurs are global from day one, yet the systems meant to support them are still stuck in the past.

MSMEs now account for nearly 45% of India’s exports, and their growth outpaces that of larger firms. In just four years, their export value has tripled from ₹3.95 lakh crore in 2020–21 to ₹12.39 lakh crore in 2024–25. Emerging hubs like Tiruppur, Moradabad, Surat, and Coimbatore are playing a major role. But even as these regions rise, exporters face a harsh reality: compliance processes are still manual, scattered, and unforgiving.

The Hidden Cost of Compliance

Compliance isn’t just slow it’s costly. For small exporters, it can mean missed opportunities, stalled growth, and in some cases, complete business failure.

Take the example of a viral Reddit post titled “Why you should not try exporting from India: Vent & Rant.” The post chronicled the struggle of a once-promising exporter who was derailed by regulatory delays, missed IEC updates, customs confusion, and zero support from government portals. The comment section filled with similar horror stories from refund delays to banking headaches. The takeaway? The system isn’t designed for newcomers.

Even onboarding is an uphill battle. Exporters must obtain an IEC, complete KYC, link bank accounts, and register with export councils all before shipping a single product. A Jaipur jewellery exporter, for instance, lost a €9,000 order when her goods were held in Frankfurt because her IEC wasn’t updated with her new bank account. Fixing the issue took nine days long enough for the order to be canceled and returned.

Then comes the endless documentation: invoices, shipping bills, packing lists, and certificates all need to match perfectly. A single mismatch can trigger customs delays, lost refunds, and unhappy customers.

Even after shipping, exporters must secure FIRA or eBRC certificates from banks to prove payment receipt. This process can take 7–15 days, during which refunds, incentives, and future exports are frozen. Miss a filing deadline, and the RBI can caution-list the exporter, halting all future exports.

Compliance: A Dream Killer for New Exporters

The true cost of inefficient compliance isn’t just financial it’s emotional and psychological. For a new exporter, the excitement of receiving an international order can quickly turn into anxiety. A confusing form. A missing document. Silence from a portal. In Tier 2 and Tier 3 cities, many give up not due to lack of demand, but because the system is too complicated for them to navigate alone.

Instead of building trust, non-digital, manual compliance becomes a barrier. It kills momentum and discourages innovation ironically harming the very businesses India needs to meet its $2 trillion dream.

Fintech: The Unsung Hero of Export Transformation

But there’s hope. Across India’s trade ecosystem, a quiet revolution is taking place, led by fintech platforms that are reimagining compliance.

Fintech firms are embedding compliance directly into digital workflows. No more treating documentation, KYC, and reconciliations as burdensome tasks now they’re part of the transaction process itself.

Onboarding is easier than ever. Tasks like IEC registration, bank linking, and KYC verification, once spread across weeks, can now be completed within minutes through guided tools and automated systems.

Post-shipment compliance is also becoming more efficient. FIRAs can now be auto-generated the moment payment is received. Amazon exporters who previously waited weeks for eBRCs now get them instantly, without bank follow-ups or delays.

Tax and refund processes are smarter too. Fintech platforms identify invoice mismatches early and offer unified dashboards that sync GST filings, customs data, and RoDTEP claims. Exporters get a single source of truth eliminating guesswork and delays.

The Road Ahead

These changes are not just conveniences they are mission-critical enablers. For MSMEs, automation shortens cash cycles, ensures accuracy, and builds confidence. Exporters no longer need to be experts in RBI notifications or DGFT circulars. The system does the heavy lifting for them.

To achieve the $2 trillion export target, India needs more than new trade agreements or port upgrades. It needs to eliminate the invisible friction that holds exporters back. The ambition is there. The demand is real. The only thing left is to bring our systems up to speed simple, digital, and scalable so every Indian exporter, no matter how small, can compete and thrive globally.