Govt to Reimburse Up to 75% of EU Compliance Costs for MSME Exporters

The Union Government will fund a substantial share of the compliance costs incurred by micro and small exporters to meet European Union regulations, Commerce and Industry Minister Piyush Goyal said on Monday. The support will be provided under the ₹25,060 crore Export Promotion Mission (EPM). 

TRACE Reimbursement  

Under the Trade Regulations, Accreditation and Compliance Enablement (TRACE) component of the mission, exporters can seek reimbursement for testing, inspection and certification linked to overseas rules. The scheme allows reimbursement of up to 75% of eligible expenses, with a ceiling of ₹25 lakh per importer-exporter code each year. 

REACH and CBAM Requirements 

As pet the news reports, the assistance includes compliance with the EU’s REACH regulation and the Carbon Border Adjustment Mechanism (CBAM). REACH governs the manufacture and import of chemical substances into the EU and requires registration and safety documentation. 

CBAM applies a carbon-based levy on selected imports such as iron and steel, depending on emissions generated during production. Exporters are required to submit verified data and meet reporting standards to continue access to the EU market. 

The minister said the government would fund approval processes for micro and small units under the mission, subject to scheme guidelines. He was speaking at the National Quality Conclave. 

Trade Outreach and Agreements 

The announcement comes as India expands trade ties through free trade agreements. Over the past 4 years, 9 such agreements have been concluded, covering 38 developed countries. These markets account for nearly two-thirds of global GDP and trade. 

Recent agreements have been finalised with the United Kingdom, New Zealand, Oman and the European Union. The government expects sectors such as textiles, leather, footwear and pharmaceuticals to benefit from wider market access. 

Export Outlook 

India’s share in global trade remains limited in several labour-intensive sectors. The government has set a target of reaching $2 trillion in goods and services exports within 7 to 7 years, earlier than the previous 2030 timeline. 

According to the minister, exports recorded double-digit growth during the first half of February this year. He also urged industry to focus on production processes, skilling and quality control across supply chains. 

Read More: India’s iPhone Exports Surge to $23 Billion in 2025, Leading the Tech Export Boom! 

Conclusion  

The scheme provides partial financial relief to micro and small exporters facing certification and regulatory costs in the EU market. Assistance will be subject to eligibility criteria and annual caps. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.