DGFT Eases Criteria for One Star Export House Status Under Foreign Trade Policy 2023

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Dated: 24.08.2026

DGFT Eases Criteria for One Star Export House Status Under Foreign Trade Policy 2023

The Government of India has recently introduced a significant amendment to the Foreign Trade Policy (FTP) 2023, specifically targeting the criteria for granting export house status. This change, announced by the Directorate General of Foreign Trade (DGFT), aims to make it easier for exporters—especially those aspiring for One Star Export House recognition—to qualify and benefit from this prestigious status.

Background: Understanding Export House Status

Export House status is a recognition granted by the Indian government to exporters who demonstrate consistent export performance. This status provides various benefits, including easier access to export incentives, simplified procedures, and enhanced credibility in international markets. The status is categorized into different tiers, such as One Star, Two Star, and so on, based on export performance.

Previous Criteria Under FTP 2023

Before the amendment, Para 1.25(d) of the FTP 2023 required exporters to show export performance in all three preceding financial years to qualify for export house status. For the Gems & Jewelry sector, the requirement was export performance in both of the two preceding financial years.

Key Amendment: Relaxed Criteria for One Star Export House

The recent notification introduces a crucial relaxation:

For most sectors (excluding Gems & Jewelry): Exporters can now qualify for One Star Export House status if they have export performance in any two out of the three preceding financial years, instead of all three.
For the Gems & Jewelry sector: The requirement remains unchanged—export performance in both of the two preceding financial years is still necessary.

Comparative Table: Old vs. New Criteria

Criteria	Previous Requirement	Amended Requirement
All Sectors (except Gems & Jewelry)	Export performance in all 3 preceding financial years	Export performance in any 2 out of 3 preceding financial years (for One Star status)
Gems & Jewelry Sector	Export performance in both preceding financial years	No change

Implications of the Amendment

This amendment is expected to benefit a wide range of exporters, particularly those who may have faced disruptions in one of the three years due to unforeseen circumstances (such as global economic fluctuations or supply chain issues). By allowing flexibility in the qualifying period, the government aims to encourage more businesses to seek export house status and boost India’s overall export performance.

How to Apply Under the New Criteria

Exporters seeking One Star Export House status (other than those in the Gems & Jewelry sector) should ensure they meet the revised criteria—export performance in any two out of the last three financial years. All other provisions of Para 1.25 of FTP 2023 continue to apply.

Conclusion

The amendment to Para 1.25(d) of the Foreign Trade Policy, 2023, reflects the government’s commitment to supporting exporters and enhancing India’s global trade competitiveness. Exporters are encouraged to review their eligibility and take advantage of this more flexible recognition framework.

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Source: DGFT

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