India's commerce and industry ministry has initiated the development of a sustainability certification framework for exports, according to a report by the Economic Times. The move is designed to help Indian exporters meet evolving compliance norms in the European Union and the United Kingdom.
Background
According to the Economic Times, the ministry has requested information from export-oriented sectors about products that may soon require proof of sustainability. This includes data points, methodologies, and verification processes that should be incorporated into an Indian sustainability certification framework to ensure acceptance in foreign markets.
The report notes that while there is no single universally accepted sustainability certificate, compliance is typically demonstrated through sector-specific certifications, traceability, emissions reporting, and independent audits. The government's initiative is critical as regulatory approaches differ across countries, though common elements include traceability, environmental performance disclosure, sustainable sourcing obligations, carbon accounting frameworks, organic and eco-label certifications, and digital product information systems.
Government's Initiative
An official cited by the Economic Times stated, "The effort is to prioritise sectors which are most likely to encounter sustainability-linked requirements based on prevailing global practices and come out with credible certification standards. The goal is to generate verifiable data." The person added that the exercise has just started and that state governments will also be involved.
The initiative also aims to improve the quality of manufactured items and strengthen India's capacity to comply with the regulations of its trading partners, the official said.
Trade Context
According to government data cited in the report, Europe and North America together account for about 40% of India's goods exports. India has already inked a trade deal with the UK and concluded talks for one with the EU, and is currently negotiating trade agreements with the US and Canada. Both the UK and the EU are developing carbon border adjustment mechanisms (CBAMs), which could impose additional costs on imports based on their carbon footprint.
The following table summarises the key regulatory elements that the Indian framework will need to address:
| Regulatory Element | Description |
|---|---|
| Traceability | Ability to track products through the supply chain |
| Environmental performance disclosure | Reporting on environmental impact |
| Sustainable sourcing obligations | Requirements to source materials sustainably |
| Carbon accounting frameworks | Measurement and reporting of greenhouse gas emissions |
| Organic and eco-label certifications | Certifications for organic or environmentally friendly products |
| Digital product information systems | Electronic systems to provide product data |
Challenges and Next Steps
An industry official quoted in the Economic Times noted a significant challenge: "There are no Indian standards for many products, and if there are, they are inferior to their Western counterparts." The government is also seeking details on products and destination markets where sustainability-linked certificates or documentary evidence are already mandated or commonly required.
The exercise is still in its early stages, with state governments yet to be fully integrated. The outcome will be crucial for Indian exporters targeting the EU and UK markets, especially as CBAMs come into force.
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