India stepped up both its global trade diplomacy and domestic export reforms as Commerce Secretary Rajesh Agrawal held talks with Paraguay’s Vice-Minister for International Trade Patricia Frutos on the sidelines of the upcoming WTO Ministerial Conference MC14.
The bilateral meeting focused on strengthening trade ties while aligning with India’s broader strategy at the ministerial conference scheduled from March 26 to 29. India is expected to push for revival of the dispute settlement mechanism and protection of Special and Differential Treatment (S&DT) provisions for developing countries, while resisting pressure on plurilateral trade agreements.
India–Paraguay trade talks gain momentum
Discussions between the two sides covered key WTO agenda items such as fisheries subsidies, agriculture, and the e-commerce moratorium. India also explored expanding market access for its pharmaceuticals and engineering goods in Paraguay.
At the same time, Paraguay is seeking better access for its agricultural exports, particularly soy and beef, which currently face tariff barriers in India. Officials indicated that mutual recognition agreements and targeted policy adjustments could unlock bilateral trade potential of up to $500 million.
The meeting builds on earlier engagements, including Secretary Agrawal’s discussions with Ngozi Okonjo-Iweala in Geneva, reflecting India’s dual approach of strengthening multilateral negotiations while pursuing bilateral opportunities.
Digital reforms to boost export efficiency
Alongside international outreach, India has introduced major domestic reforms to simplify export processes and improve transparency. The Directorate General of Foreign Trade (DGFT) has implemented real-time verification of Importer Exporter Code (IEC) applications through integration with the National Payments Corporation of India. Under this system, bank account details linked to PAN are instantly verified using NPCI APIs, reducing approval timelines from weeks to hours and minimizing fraud.
Applicants receive automated status updates, and failed verifications must be corrected before proceeding, ensuring a more secure and efficient export ecosystem.
Clearing backlogs, unlocking liquidity
The government has also launched a nationwide drive to clear pending Export Obligation Discharge Certificates (EODCs) under schemes like Advance Authorization and EPCG. These certificates are crucial for exporters to fulfill compliance requirements and release bank guarantees.
Through digital processing and facilitation camps, authorities aim to unlock over ₹10,000 crore in liquidity for exporters. Past pilot drives have already shown significant reductions in backlog and faster approvals.
Export promotion mission targets $1 trillion goal
India’s broader export strategy is anchored in the Export Promotion Mission (EPM), launched for FY 2025–26 with an outlay of ₹25,060 crore through 2030–31. The programme combines financial and non-financial support for exporters, especially micro, small and medium enterprises (MSMEs).
Key components include:
- Financial assistance such as interest subvention, factoring support, and export credit access
- Non-financial support including quality certification, branding, logistics, and participation in trade fairs
The initiative is fully digitized and delivered through DGFT platforms, aiming to expand India’s export base and support its long-term goal of reaching $1 trillion in exports.
These reforms are being implemented alongside initiatives like Districts as Export Hubs (DEH) and One District One Product (ODOP), which aim to strengthen grassroots export capacity. So far, 249 district export action plans have been notified.
Digital platforms such as ICEGATE are also being leveraged to streamline customs processes and improve efficiency.
Government data indicates that IEC registrations have increased by 25% following NPCI integration, while EODC pendency has dropped significantly in pilot phases.
India’s approach at MC14 reflects a balance between multilateral engagement and domestic preparedness. While pushing for fair global trade rules, the country is simultaneously strengthening its internal systems to enhance competitiveness.
With a merchandise trade deficit of around $250 billion, officials believe that improving export efficiency and reducing procedural bottlenecks can have an impact comparable to tariff reductions.
The engagement with Paraguay is also seen as a gateway to the Mercosur region, opening new opportunities for Indian exporters in Latin America.
As global trade negotiations remain uncertain, India’s strategy highlights a shift toward combining diplomatic efforts with structural reforms aimed at positioning the country as a more resilient and competitive player in international trade.