Regulation & compliance · 8 min read · 10 February 2026
IndiaExportRegulationsUpdate—WhatBuyersNeedtoKnowin2026
The regulatory updates that meaningfully affect India-outbound sourcing in 2026 — CBAM readiness, LEC certification, RoDTEP rate changes, and e-invoicing.
Four regulatory updates that meaningfully affect India-outbound sourcing programmes this year. Practical summary, no lawyer-speak.
1. EU CBAM transitional operation — what buyers must ask for
The EU Carbon Border Adjustment Mechanism is now in transitional operation for cement, iron, steel, aluminium and fertilisers. Importers into the EU must submit quarterly carbon-emissions reports on covered goods; suppliers must provide the underlying data. For soft goods (textiles, home décor, apparel) inclusion is on the 2027-2028 roadmap.
Practical implication for 2026 sourcing: even if your specific category is not yet covered, ask suppliers about their carbon-tracking capability. Suppliers who understand the question are the ones who will be shippable when inclusion happens; suppliers who don't understand are on borrowed time.
2. Legal Entity Compliance (LEC) certification
India's LEC certification became mandatory in H2 2025 for all export shipments above $50,000 in value. LEC confirms the exporting entity is legally registered, tax-compliant and has active GST/IEC registration. Missing LEC blocks export documentation at CHA level.
Our supplier tier all maintains active LEC. Buyers running through unfamiliar suppliers should ask for the LEC number as part of the initial supplier evaluation — a 30-second check that prevents a 30-day export blockage later.
3. RoDTEP rate revisions — 2026 updates
The Remission of Duties and Taxes on Exported Products scheme rates were revised in January 2026, with modest changes across most categories. Handicrafts, textile and home décor saw 0.5-1.5 percentage-point improvements; leather saw a 0.5-point reduction. For buyers on ex-works pricing, these changes are absorbed by the supplier; for FOB pricing, the changes are already reflected in Q1 2026 quotes.
Buyers who track landed-cost carefully should ask suppliers to break out the RoDTEP component in the quote — it's a legitimate detail that affects reconciliation.
4. E-invoicing thresholds — reduced to ₹1 crore
India's e-invoicing threshold dropped to ₹1 crore (~$120K) in October 2025 from the previous ₹5 crore. Exports above this threshold now require GSTN-registered e-invoice generation before shipping documents are issued. This is a supplier-side administrative requirement but occasionally trips up new supplier onboarding — factories used to paper invoicing take 2-4 weeks to onboard GSTN e-invoicing.
Ask new suppliers about their e-invoicing readiness during evaluation. Suppliers who confirm active GSTN e-invoice generation are already integrated; suppliers who don't need to be integrated before your first PO ships.
How this affects your 2026 sourcing calendar
None of these updates are individually dramatic, but the cumulative effect is that supplier due-diligence needs to be more thorough than in 2024. Missing LEC blocks exports. Missing e-invoicing capability delays first shipments. Missing carbon-tracking capability creates 2027-2028 exposure. Suppliers who tick all four boxes today are the ones worth building 5-year relationships with.
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