India Launches “TRACE” to Help MSMEs Meet Global Standards
Overcoming Quality Barriers: India Launches “TRACE” to Help MSMEs Meet Global Standards
For many Indian MSMEs, the path to global markets isn’t just about finding a buyer—it’s about passing the rigorous “Quality Gate.” Different countries have vastly different rules for testing, certification, and compliance, which can often be expensive and confusing.
To solve this, the government has launched the Trade Regulations, Accreditation & Compliance Enablement (TRACE) intervention under the Export Promotion Mission (EPM) – NIRYAT DISHA. Effective from February 20, 2026, TRACE is designed to make global compliance affordable and accessible.
What is TRACE?
TRACE is a financial support mechanism that helps MSMEs (involved in international value chains) meet the regulatory and technical requirements of importing countries. Instead of bearing the full burden of expensive international certifications alone, eligible businesses can now receive partial reimbursements for their compliance costs.
What Expenses are Covered?
The initiative covers a wide range of costs essential for market access, including:
- Testing & Inspection: Costs for laboratory testing required by foreign regulators.
- Certifications & Audits: Fees for obtaining internationally recognized standards (such as ISO, CE, or industry-specific marks).
- Traceability Systems: Implementation of digital or physical systems to track products through the supply chain.
- Conformity Assessments: Any mandated evaluation needed to prove your product is safe and compliant for a specific foreign market.
Why TRACE is a Game-Changer for MSMEs
Technical Barriers to Trade (TBT) are often cited as the biggest “hidden” cost in exporting. TRACE levels the playing field by:
- Reducing Financial Risk: Partial reimbursements lower the entry cost for new markets.
- Boosting Credibility: Meeting international standards makes Indian products more attractive to high-end buyers.
- Enhancing Competitiveness: By streamlining compliance, MSMEs can respond faster to global tenders and supply chain demands.
Implementation & Feedback
Like other recent EPM initiatives, TRACE is currently being operationalized on a pilot basis. This allows the government to gather data, learn from institutional challenges, and refine the process based on real-world results.
We Want Your Input!
The government is inviting stakeholder feedback on the TRACE guidelines. If you are an exporter or a manufacturer, you have 30 days (until March 22, 2026) to submit your suggestions or comments via email to epm-dgft@gov.in.
Ready to get certified?
The detailed policy framework and application procedures are available in the official Annexures of Trade Notice No. 26/2025-26. Stay tuned to our blog as we break down the step-by-step application process once the online portal is fully live.
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