India is creating new sustainability certification standards for its export products, according to a report by ET Retail. This initiative aims to boost the competitiveness of Indian goods in international markets as developed nations increasingly demand proof of sustainability. The commerce and industry ministry is gathering information from various export sectors to develop credible certification standards that will help Indian businesses meet global regulations and strengthen trade ties.
Government Initiative Details
As part of the exercise, the commerce and industry ministry has requested information from export-oriented sectors about products that may soon need proof of sustainability, a person cited in the report said. The ministry is also seeking information on data points, methodologies and verification processes that should be included in an Indian sustainability certification framework to ensure its acceptance in foreign markets.
The official cited earlier 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 government's initiative is crucial as regulatory approaches differ across countries, though common elements include traceability requirements, environmental performance disclosure, sustainable sourcing obligations, carbon accounting frameworks, organic and eco-label certifications, and digital product information systems.
EU and UK Regulatory Pressures
In the EU, Indian exports must meet the EU Deforestation Regulation and the Ecodesign for Sustainable Products Regulation — norms that seek supply chain transparency, the report noted. Both the UK and the EU are developing carbon border adjustment mechanisms, which will further require sustainability compliance.
| Regulation / Mechanism | Market | Key Requirement |
|---|---|---|
| EU Deforestation Regulation (EUDR) | EU | Supply chain transparency, deforestation-free products |
| Ecodesign for Sustainable Products Regulation (ESPR) | EU | Environmental performance, sustainability criteria |
| Carbon Border Adjustment Mechanism (CBAM) | EU, UK (in development) | Carbon accounting, emissions reporting |
Trade Context and Market Share
Europe and North America account for about 40% of the goods that India exports, according to government data cited in the report. India has inked a trade deal with the UK, concluded talks for one with the EU, and is negotiating trade agreements with the US and Canada. These trade relationships underscore the importance of aligning with sustainability standards.
Industry Feedback
An industry official quoted in the report said: "There are no Indian standards for many products, and if there are, they are inferior to their Western counterparts." This highlights the need for the new framework to meet international expectations.
The ministry is also seeking details on products and destination markets where sustainability-linked certificates or documentary evidence are already mandated or commonly required.
Common Compliance Elements
Although there is no single universally accepted "sustainability certificate," sustainability compliance is demonstrated through:
- Sector-specific certifications
- Traceability systems
- Emissions reporting
- Independent audits
- Digital product information systems
Consumers are increasingly seeking ethically and sustainably produced goods, driving the need for verifiable data.
Next Steps
The exercise has just started, and states will also be roped in, the official said. The commerce ministry's initiative is a proactive step to ensure Indian exports remain competitive in markets with stringent environmental and sustainability regulations.
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