In a move aimed at bolstering India’s manufacturing exports, the Ministry of Commerce and Industry has officially extended export-linked incentive schemes to include registered partnership firms operating in the manufacturing sector. The decision, which aligns with the government’s push for MSME-led global trade growth, offers partnership firms access to financial benefits previously available primarily to companies and LLPs.

Under the revised guidelines of the Remission of Duties and Taxes on Export Products (RoDTEP) and Export Promotion Capital Goods (EPCG) schemes, partnership firms engaged in the production and export of eligible goods can now claim duty refunds, access concessional credit, and receive priority in trade facilitation services.

Previously, ambiguity in the classification of eligible entities had excluded many manufacturing partnerships—particularly those in textiles, engineering goods, food processing, and handicrafts—from availing export incentives despite contributing significantly to India’s outbound trade.

“This reform corrects a long-standing disparity,” said a senior official from the Directorate General of Foreign Trade (DGFT). “Partnership firms form the backbone of decentralized manufacturing, especially in Tier 2 and Tier 3 cities, and their inclusion is vital for broad-based export growth.”

To qualify, firms must be registered under the Indian Partnership Act, 1932, possess a valid Import Export Code (IEC), and file returns through the DGFT online portal. Firms will also be required to submit proof of manufacturing activity, export invoices, and bank realization certificates.

Industry associations have welcomed the announcement, stating it will encourage formalization and global expansion of small manufacturers. However, they have urged the government to also offer capacity-building workshops and simplified compliance processes to help small firms navigate the DGFT application systems.

The inclusion of partnership firms in India’s export policy framework is expected to unlock significant potential in grassroots industrial hubs and promote Make in India for the World initiatives.