India’s $2 trillion export ambition hinges on fixing compliance

The rise of Indian exports isn’t just about big manufacturers anymore.

By Srivatsan Sridhar 

India has set its sights on an ambitious goal: $2 trillion in exports by 2030. With global demand rising and Indian businesses rapidly digitising, the target seems attainable. But there’s a silent hurdle holding back progress—compliance.

Not compliance in principle—that’s essential. But the way it’s executed today: fragmented, opaque, and painfully slow. For many exporters, especially MSMEs, this has become a make-or-break bottleneck.

The New Face of India’s Exports

The rise of Indian exports isn’t just about big manufacturers anymore. Today’s exporters include solo founders in Kochi selling candles on Etsy, garment exporters in Surat fulfilling Diwali orders from the US via Amazon, and jewellery brands in Jaipur scaling through Instagram and Shopify. They’re global from day one. But the systems supporting them weren’t built for this new generation of exporters.

That matters because these small and mid-sized businesses now drive a huge part of India’s trade. MSMEs contribute nearly 45% of India’s exports, and their growth is outpacing that of large firms. In fact, MSME export value has tripled in the last four years—from ₹3.95 lakh crore in 2020–21 to ₹12.39 lakh crore in 2024–25. Many of them come from emerging export hubs like Tiruppur, Surat, Coimbatore, and Moradabad. And yet, their everyday experience remains riddled with red tape.

The Hidden Cost of Compliance 

For many small exporters, compliance doesn’t just slow them down—it can stop them entirely.

A Reddit post by a frustrated Indian entrepreneur recently went viral, exposing the harsh realities behind India’s “ease of doing business” claims—especially for small exporters. Titled “Why you should not try exporting from India: Vent & Rant”, it chronicled how mounting regulatory hurdles crippled what was once a promising cross-border business. The story struck a nerve, sparking hundreds of comments from others facing similar struggles—missed IEC updates, customs delays, opaque refund processes, and silence from government portals. For many, the message was clear: the system isn’t built for newcomers.

This isn’t a one-off story. It starts right at onboarding. New exporters must register for an Import Export Code (IEC), pass KYC checks, link bank accounts, and often register with export councils. For a first-timer, it’s overwhelming. One jewellery exporter from Jaipur lost a €9,000 order after her goods were held at Frankfurt customs—her IEC profile hadn’t been updated with a new bank account. Fixing that took nine days. The shipment was returned.

Then comes documentation. Every shipment needs perfectly matched invoices, shipping bills, packing lists, and certificates. A small mismatch can lead to costly delays.

And it doesn’t end after shipping. Exporters must get formal proof—FIRA or eBRC from their banks—to show the payment was received. But banks can take 7–15 days to issue these, stalling refunds, incentives, and even future shipments. Miss this window, and the RBI may caution-list the exporter, blocking further exports.

Even after all this, exporters must still claim refunds under GST or schemes like RoDTEP. These require perfectly matched data between returns, customs filings, and shipping documents. Any misalignment, and the refund is blocked. For many, it’s a cycle of delays and uncertainty.

But the real cost isn’t just time or money—it’s momentum. For a first-time exporter, the excitement of a global order can quickly turn into confusion and fear. A form they didn’t expect. A bank query they don’t understand. Silence from a portal. In Tier 2 and Tier 3 cities, we’ve seen too many give up—not for lack of demand, but because the system wasn’t designed for them.

Compliance should build trust in global trade. But when it’s scattered, manual, and opaque, it becomes a barrier—not a safeguard. And the exporters powering India’s $2 trillion dream are the ones paying the price.

Fintech is Bridging the Gap 

The good news? This bottleneck isn’t permanent. Across India’s export ecosystem, a quiet transformation is underway—driven not just by policy, but by product innovation.

Fintech platforms are reimagining compliance. Rather than treating KYC, documentation, and reconciliations as back-office tasks, they are integrating them directly into the transaction flow. Compliance becomes part of doing business, not a separate burden.

Take onboarding. Tasks like IEC registration, bank account linking, and KYC checks that once took weeks can now be completed in just a few clicks through guided workflows and automated verification tools.

Post-shipment compliance is evolving too. Some platforms now issue FIRAs automatically as soon as payments are received, eliminating the need for manual follow-ups with banks. Amazon exporters, who often struggle to obtain eBRCs for GST refunds or RoDTEP claims, can now receive them instantly. No calls to relationship managers, no 15-day waiting periods, no uncertainty.

Tax processes are becoming more transparent and manageable. Fintech systems now flag invoice mismatches early—before they block refund claims. Some even offer unified dashboards that reconcile GST filings, RoDTEP claims, and customs documentation, providing exporters with a single, reliable source of compliance data.

These improvements are more than conveniences. For small exporters, automation helps shorten cash cycles, ensures regulatory compliance, and builds confidence to grow. Most importantly, it makes the system feel accessible. Exporters no longer need to be experts in RBI circulars or DGFT notifications. The best platforms embed that knowledge into the product experience—guiding users while keeping them fully compliant.

If India wants to reach $2 trillion in exports, the real breakthrough will not come from just new trade agreements or better port infrastructure. It will come from removing the invisible frictions that slow exporters down. The ambition is in place and the global demand is very much there. Now, the systems need to match the speed and simplicity exporters need to thrive.

(Srivatsan Sridhar, Co-Founder and CEO, Skydo, a cross-border payments platform.)

Views are personal and do not represent the stand of this publication.