India is set to introduce a nationwide sustainability certification program to help exporters meet global ESG standards and strengthen their position in international markets.

India to Launch Sustainability Certification Program to Boost Export Competitiveness

India is set to launch a nationwide sustainability certification program to help exporters, especially those in textiles and apparel, meet international environmental and social compliance standards, according to industry sources. The planned certification is designed to boost India's competitiveness in the international market, where buyers are increasingly seeking verified sustainability credentials.

The certification program is set to establish common standards on environmental performance, labour use, resource efficiency and transparency in the supply chain, in line with consultations with industry bodies and the government involved in the textile industry. The move follows a trend of stronger import restrictions imposed by key trading partners such as the European Union and North American markets, based on environmental, social and governance (ESG) standards.

With the proposed framework, exporters can gain access to sustainability certification confirming their adherence to parameters such as carbon footprint reduction, water and chemical use, responsible labour practices and production process traceability. This certification will assist Indian manufacturers in preparing for trade restrictions such as carbon adjustment mechanisms and sustainability disclosure requirements; while ensuring they meet the expectations of their buyers.

This certification could provide a more transparent way for brands to access premium markets in the textile and apparel industry, which is one of India's biggest export segments, where brands are increasingly turning to suppliers that can demonstrate sustainable practices. It is also expected to help small and medium enterprises (SMEs) that deal with disparate standards and complex compliance requirements.

The certification will be designed to be complementary to existing international standards and not serve as an umbrella for existing global standards, said officials. Various possibilities have been considered to ensure the credibility and transparency of the process, such as third-party audits and digital verification systems.

The proposal has been warmly received by the industries' associations such as the export councils and sustainability forums since it will facilitate reducing the cost of compliance and reporting, thereby improving India's image as a responsible exporter in the international value chain.

The export sustainability certificate in India is one of the approaches aimed at ensuring sustainable trade not only in India but internationally as the world embraces sustainability-oriented trade.

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