In a strategic push to expand India’s export base, the Department of Commerce has recommended that Limited Liability Partnerships (LLPs) be made eligible for key export incentive schemes. This proposal, part of the ministry’s mid-year review of trade facilitation policy, aims to bring LLPs at par with private limited companies and registered partnerships in availing benefits under schemes like Remission of Duties and Taxes on Exported Products (RoDTEP) and Market Access Initiative (MAI). The recommendation is currently under consideration by the Ministry of Finance and the Directorate General of Foreign Trade (DGFT).

According to officials, the proposal suggests that LLPs engaged in the export of goods or services should be allowed to register with the DGFT and receive Import Export Codes (IECs) with full eligibility for export-linked benefits. Once approved, these LLPs would be able to claim duty remission, apply for subsidies on international trade fair participation, and access export credit insurance and working capital support through EXIM Bank and ECGC. The move would particularly benefit LLPs in IT services, pharmaceuticals, handicrafts, and design sectors, which have a growing global footprint but currently operate without direct export incentives.

Industry experts have praised the proposal as a long-overdue reform that would level the playing field and unlock new markets for smaller, innovation-driven LLPs. The Department of Commerce has also recommended that state-level export promotion councils include LLPs in their vendor outreach and grant schemes to support localized participation. If implemented, the policy could enhance export diversification and strengthen India’s MSME export ecosystem, especially in sectors driven by niche expertise and professional collaboration.