Government Plans to Ease Lending and Review Quality Rules to Strengthen Indian Exports

The Indian government is finalising a new set of policy measures to make life easier for exporters — from relaxed lending norms and better working capital access to a review of stringent quality checks that have slowed supply chains. The move, senior officials say, is part of a broader push to boost India’s global trade footprint and help businesses navigate a challenging global environment.

The decision follows a high-level review meeting chaired by Prime Minister Narendra Modi last week, where representatives from key export industries shared their concerns about credit access, regulatory bottlenecks, and cost pressures.

Exporters Seek Easier Financing and Simpler Rules

During the meeting, leaders from sectors such as textiles, leather, gems and jewellery, engineering goods, seafood, and handicrafts highlighted their struggles with tight credit conditions and rising raw material prices.

Several exporters told the government that banks remain hesitant to extend large loans, even to firms with solid export records and order books. The demand was straightforward: make financing simpler and quicker so businesses can capitalise on growing global demand without liquidity stress.

“Access to finance is the biggest challenge right now. Without easier credit, we can’t compete globally, even when demand is strong,” one industry representative reportedly told officials during the meeting.

Government’s Response: Targeted Relief and Policy Tweaks

The Prime Minister assured exporters of full government support, saying that improving competitiveness remains a national priority. Top ministers, including Finance Minister Nirmala Sitharaman and Commerce Minister Piyush Goyal, were present at the meeting, signalling a coordinated policy approach.

A senior government official said the planned measures may include:

• Relaxed bank lending rules for export-oriented firms.

• Improved working capital frameworks to ensure liquidity for exporters.

• Incentive-linked financing mechanisms under existing credit guarantee and insurance schemes.

“The objective is to ensure Indian exporters don’t face liquidity issues or delays that hold back potential global growth,” the source added.

Quality Control Rules Under Review

Another major concern raised by industry players was the rigidity of Quality Control Orders (QCOs). Exporters argued that these rules, while intended to ensure product standards, often delay imports of essential raw materials and disrupt production schedules.

The Commerce Ministry is now examining changes that could limit QCO compliance checks to finished products, reducing the regulatory burden on supply chains. This approach is expected to benefit small and medium enterprises (SMEs) that rely heavily on imported inputs for manufacturing.

India’s Trade Balancing Act

India’s share in global trade remains modest — around 2% overall, with 1.6% in goods and 3.3% in services. While exports have shown signs of recovery, imports have risen faster, widening the trade deficit.

In September 2025, India’s exports rose 6.98% to USD 36.38 billion, but imports surged 16.6%, pushing the monthly trade gap to USD 31.15 billion. Between April and September, the overall deficit reached nearly USD 155 billion, underlining the need for stronger export growth to balance trade dynamics.

A Push for Competitive, Resilient Supply Chains

Experts say the proposed steps could help India’s exporters become more agile in a volatile global environment. Simplifying lending processes, cutting down bureaucratic delays, and easing compliance norms can collectively unlock greater efficiency in India’s export sector.

With global demand shifting and trade wars reshaping supply chains, India’s focus on export facilitation rather than restriction comes at a crucial time. The government’s ongoing efforts also align with its goal to make India a $2 trillion export economy by 2030.

The Road Ahead

If implemented effectively, the government’s measures could significantly improve business sentiment among exporters and reduce the procedural pain points that often deter competitiveness.

More credit access, smoother logistics, and fewer compliance delays could together give Indian businesses the thrust they need to expand globally and reduce the trade imbalance.

As the world’s markets become more unpredictable, India’s strategy is clear — empower its exporters, simplify their path, and make “Make in India” a global reality.