The Directorate General of Foreign Trade (DGFT) has introduced Trade Regulations, Accreditation & Compliance Enablement (TRACE) under the Export Promotion Mission (EPM) – NIRYAT DISHA. The initiative has been implemented with immediate effect through an official Trade Notice. 

This intervention is designed to strengthen India’s quality compliance ecosystem and enable MSMEs engaged in international value chains to meet importing-country regulatory requirements efficiently. 

 

Introduction to TRACE under EPM – NIRYAT DISHA 

TRACE aims to reduce compliance burdens faced by Indian exporters, particularly MSMEs, by providing structured financial support for conformity assessment and regulatory adherence. 

With increasing global scrutiny around product standards, traceability, and technical compliance, Indian exporters often incur substantial costs toward certifications and inspections. TRACE seeks to partially reimburse eligible expenses incurred for meeting such mandatory requirements. 

The scheme is notified under the framework of the Foreign Trade Policy 2023 and has been released for stakeholder consultation in accordance with Paragraph 1.07A of the policy. 

 

Objective of TRACE: Strengthening Export Compliance Infrastructure

Enhancing Technical Compliance Capacity

The intervention is focused on improving India’s regulatory preparedness by: 

• Supporting compliance with importing-country technical regulations 

• Encouraging adoption of internationally recognised standards 

• Strengthening traceability and audit frameworks 

• Reducing financial strain on MSMEs 

This step aligns with India’s broader export competitiveness strategy under EPM – NIRYAT DISHA. 

 

Scope of Financial Support under TRACE 

Eligible Support 

TRACE provides partial reimbursement of eligible expenditure incurred by MSMEs involved in international value chains, specifically towards: 

• Product testing 

• Inspection requirements 

• Certification expenses 

• Third-party audits 

• Traceability system implementation 

• Other conformity assessment procedures required for market access 

The reimbursement is limited to compliance expenses that are either: 

• Mandated by importing-country regulations; or 

• Necessary to demonstrate adherence to internationally recognised standards 

This ensures that financial assistance is directly linked to export market access and regulatory conformity. 

 

Operational Framework and Implementation Structure 

The Trade Notice provides a structured implementation framework through detailed annexures: 

• Annexure I – Policy Framework 

• Annexure II – Operational and Procedural Guidelines 

• Annexure III – Governance Structure 

• Annexure IV – Online Procedure for Availing Support 

Pilot-Based Implementation 

The scheme will be operationalised on a pilot basis, allowing: 

• Institutional learning 

• Stakeholder feedback 

• Data-driven refinements 

• Process optimisation before full-scale rollout 

This phased approach indicates a calibrated compliance support mechanism under the EPM structure. 

 

Stakeholder Consultation under FTP 2023 

In line with Paragraph 1.07A of FTP 2023, stakeholders are invited to submit comments and suggestions within 30 days from the date of issuance of the Trade Notice. Feedback may be submitted to the designated DGFT email ID as specified in the notification. 

This consultative approach reflects policy transparency and industry participation in shaping export compliance mechanisms. 

 

Why TRACE Matters for MSME Exporters 

Global markets increasingly demand: 

• Stringent technical certifications 

• ESG-linked traceability compliance 

• Product-specific regulatory approvals 

• Mandatory third-party audits 

For MSMEs, these compliance costs often act as entry barriers. TRACE directly addresses this gap by supporting regulatory enablement rather than only export promotion incentives. 

This marks a strategic shift from incentive-driven exports to compliance-driven market access facilitation. 

 

Note 

The above summary is based on the official Trade Notice issued by the Directorate General of Foreign Trade (DGFT). The detailed policy framework, procedural guidelines, governance structure, and online application process are provided in the respective annexures to the notification. 

A comprehensive analysis of the annexures and procedural mechanics will be covered separately. 

 

Conclusion 

The launch of TRACE under EPM – NIRYAT DISHA represents a structured effort to strengthen India’s export compliance ecosystem. By partially reimbursing regulatory compliance costs, the scheme aims to enhance MSME participation in international value chains and improve market access readiness. 

As global trade becomes increasingly standards-driven, compliance enablement initiatives such as TRACE are expected to play a pivotal role in sustaining India’s export growth trajectory. 

The detailed Trade Notice and Annexures follow the link below:
https://prefaceventure.com/wp-content/uploads/2022/10/DGFT-Launches-TRACE-under-Export-Promotion-Mission-EPM-–-NIRYAT-DISHA.pdf

Notification Reference:  DGFT
Notification No. 26/2025-2026
20/02/2026