India’s global trade received a significant boost as the rejection rate of Indian products exported abroad fell by 12.50%, according to Minister of State for Commerce and Industry Jitin Prasada. This positive trend reflects India’s growing compliance with international quality standards, packaging norms, labelling requirements, and phytosanitary measures imposed by various foreign countries.

While addressing the issue, Prasada highlighted that every country faces product rejections due to a variety of non-tariff measures. These include strict checks on food safety, hygiene, agricultural health standards, labelling regulations, and overall product quality. However, the notable reduction in India’s rejection rate signals that exporters are now more aligned with global market requirements, strengthening India’s credibility in international trade.

Why Indian Products Face Rejections Abroad

Imported products from India often undergo stringent inspections in foreign markets. Phytosanitary standards ensure that agricultural imports are free from pests and diseases, while packaging and labelling rules guarantee consumer safety and proper market transparency. Failure to meet these requirements has in the past resulted in rejections of Indian consignments, particularly in highly regulated markets like the European Union, the United States, and Japan.

Non-tariff barriers (NTBs), unlike tariffs, are not linked to direct taxes but to regulations that exporting nations must comply with. These barriers include food safety certifications, quality checks, labelling accuracy, and packaging compliance. For Indian exporters, especially in the agricultural and processed food sectors, these standards have often posed challenges.

The 12.5% Decline: A Boost for Exporters

The 12.50% decline in rejection rates indicates that Indian exporters have begun adopting more stringent quality control mechanisms, including internationally accepted certifications. Improved laboratory testing facilities, greater awareness among exporters, and government initiatives to train producers and manufacturers on compliance issues have contributed to this improvement.

Prasada further noted that the government is working closely with industries to harmonise India’s export practices with global benchmarks. This includes expanding testing labs, digitalising certification systems, and aligning India’s food safety and quality norms with international agencies like Codex Alimentarius and the International Plant Protection Convention (IPPC).

Government Measures Supporting Exporters

To address rejection issues, the Indian government has launched multiple initiatives such as:

• Market Access Initiatives (MAI): Financial support to exporters for improving global market reach.

• Export Inspection Council (EIC): Ensuring certification of export products as per importing country standards.

• Awareness programmes for exporters: Training on phytosanitary compliance, labelling laws, and packaging rules in foreign markets.

• Collaboration with global agencies: Partnerships to streamline certification processes for exporters.

These measures are particularly crucial in sectors like agriculture, seafood, pharmaceuticals, textiles, and processed foods, which often face high rejection rates due to stringent safety norms abroad.

Impact on India’s Global Trade Outlook

The decline in rejection rates enhances India’s competitiveness in world markets, making Indian products more reliable in the eyes of foreign buyers. Lower rejection rates also reduce financial losses for exporters, improve brand reputation, and open opportunities for higher-value exports.

Prasada’s statement highlights the government’s determination to make India a trusted global supplier, especially as the country pushes towards ambitious export targets under its Viksit Bharat 2047 vision.

The reduced rejection rate also reflects India’s efforts in strengthening quality infrastructure and improving coordination between exporters, testing agencies, and government authorities.

The Road Ahead

While the progress is encouraging, challenges remain. Exporters must continue to adapt to evolving international standards, including sustainability norms, carbon footprint disclosures, and digital traceability requirements. With global markets increasingly focusing on eco-friendly packaging and ethical sourcing, India’s export ecosystem will need continuous upgrades.

However, the current trend offers optimism. By reducing rejection rates, Indian exporters are not only saving costs but also enhancing the credibility of Brand India in global trade. If this momentum continues, India could witness significant growth in exports, helping it move closer to its goal of becoming a $2 trillion export economy by 2030.

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