The Iran conflict has made two things clear: One, a new wave of globalization is coming, like it or not, from which further such shocks can’t be ruled out; and two, dependable dollar inflows from export earnings need to grow handsomely.
The Iran conflict has made two things clear: One, a new wave of globalization is coming, like it or not, from which further such shocks can’t be ruled out; and two, dependable dollar inflows from export earnings need to grow handsomely.
In preparation of these new realities, India is striving to secure diverse export markets and integrate its economy into global supply chains. Besides obvious economic gains, this deepening of economic integration will also help increase India’s strategic choices, reduce risks and build leverage in geopolitical relations.
In preparation of these new realities, India is striving to secure diverse export markets and integrate its economy into global supply chains. Besides obvious economic gains, this deepening of economic integration will also help increase India’s strategic choices, reduce risks and build leverage in geopolitical relations.
A good way of growing Indian exports is to reduce trade costs, which are very high at present, especially for small and medium enterprises (SMEs). India’s global ranking based on the Logistics Performance Index (LPI) has gone up from 44th in 2018 to 38th in 2023 among 139 countries, but it is still low compared to our competitors like China.
India’s performance in the UNESCAP Global Survey on Digital and Sustainable Trade Facilitation (UNTF) has also improved. In cross-border paperless trade, India’s score rose from 28% in 2015 to 67% in 2021, but has stagnated since then; this calls for policy intervention.
Greater adoption of cross border paperless trade is the low-hanging fruit that can reduce trade costs by nearly 25%, according to UNESCAP (2025), resulting in significant gains in export competitiveness.
The strategic imperative is even greater, perhaps. Countries like China and Republic of Korea are doing capacity building within the UN Cross-border Paperless Trade Agreement (CPTA) framework to help developing and least developed countries in setting up IT systems that can facilitate cross-border clearances, which India is missing out on. New Delhi had played a leadership role in designing that agreement.
Pakistan is supporting Sri Lanka Customs in digitizing. India can take more initiatives and push for cooperation on paperless trade with Customs in neighbouring countries like Sri Lanka or Bhutan.
Customs in India and Bhutan can work on a pilot project for the digital exchange of documents at the Jaigaon (West Bengal)–Phuentsholing (southwest Bhutan) border, which is presently done through shared Excel spreadsheets. Real-time sharing of data and information will help reduce trade anomalies and check informal trade.
There’s a business case for the Indian IT sector to make a bid for exporting trade-tech services to the Asia-Pacific region, potentially building a common platform across this geography seamlessly.
In a security-wise uncertain environment, India’s interests will be served well if our technology firms can do that, as they are well placed to. Several elements of the architecture needed for digital trade, such as legal preparedness and technological interoperability with trade partners, are already in place.
The Union budget for 2025-26 had announced a BharatTradeNet stack. This unified digital public infrastructure-based stack for international trade documentation and financing solutions is expected to integrate all stakeholders, including exporters, importers, customs authorities, banks, logistics providers and regulatory agencies, through an interoperable digital ecosystem.
That will take care of the technical infrastructure needed to operationalize a single- window system at home that is interoperable with other e-trade platforms.
Indian Customs is modernizing its systems. Domestically, the country has fully implemented paperless-trade measures under the UNTF, reflecting much progress made in digitalization. The Indian Customs Electronic Data Interchange Gateway, Icegate, set up in 2007, serves as a central hub for all electronic interactions between Customs and traders. The department’s Single Window Interface for Facilitating Trade of India has been operational since 2016.
Legal infrastructure is also taking shape. The Digital Trade Facilitation Bill of 2026 has proposed legal recognition of e-trade documents such that they are admissible as primary evidence in courts.
This legislation will create functional equivalence with conventional paper trails. Legal legitimacy apart, it will align with the UNCITRAL Model Law on Electronic Transferable Records to allow cross-border e-bills of lading, e-bills of exchange, promissory notes and warehouse receipts, and also aid cross-border regulatory harmonization and document exchanges.
India’s trade agreements have paperless trade provisions too. In practice, our trade facilitation regime has moved beyond basic compliances and can be characterized as TFA-plus.
The World Trade Organization’s Trade Facilitation Agreement (TFA) took force in 2017 as its first multilateral pact. It encourages members to simplify and harmonize customs procedures, enable faster clearance of goods at borders, improve transparency and predictability in trade processes, and adopt e-trade systems. India ratified it in 2016 and has undertaken several reforms since to align its procedures with it.
We would argue that by acceding to international frameworks such as the UN CPTA, India will be able to leverage its digital infrastructure and institutional capacity to make Asia-Pacific-wide gains. Even if some gaps remain, they can be addressed through domestic reforms, given that the CPTA lets members reform at their own pace.
Geetika Gupta contributed to this article.
The authors are, respectively, senior fellow (consultant) and professor, Indian Council for Research on International Economic Relations.