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India’s paperless trade imperative

This article is authored by Arpita Mukherjee, professor, ICRIER and Prabir De, professor, Research and Information System for Developing Countries (RIS).

Updated on: Nov 20, 2025 04:59 PM IST
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The global trade landscape today is defined by volatility. Against a backdrop of rising geo-political tensions, persistent tariff threats, and escalating logistics costs, countries are searching for innovative tools to secure their supply chains and boost economic competitiveness. For India, a nation undergoing a massive digital transformation, the answer lies in solidifying its commitment to the Cross-Border Paperless Trade.

Digital Trade (Representational Image/Pixabay)
Digital Trade (Representational Image/Pixabay)

A recent joint study examining India’s current paperless trade status and the Framework Agreement on Facilitation of Cross-border Paperless Trade in Asia and the Pacific (CPTA) points to a singular, critical conclusion: India is not just ready to join the UN Framework Agreement on Facilitation of Cross-Border Paperless Trade but is poised to assume a leading role in shaping its future.

India’s journey toward robust trade facilitation is already a success story. Over the years, the country has undertaken multiple, sustained domestic reforms to significantly improve its logistics performance. This effort is clearly reflected in India’s improving scores in various global surveys and indices. The implementation of critical systems like the Single Window Interface for Facilitating Trade (SWIFT), the e-Storage and computerised handling system (e-SANCHIT), and the digitisation of customs procedures through the Indian Customs Electronic Gateway (ICEGATE) have fundamentally streamlined customs and compliance processes.

While domestic reforms have been extensive, the research report titled, India and the Framework Agreement on Facilitation of Cross-Border Paperless Trade in Asia and the Pacific (CPTA): State of Play and Way Forward by ICRIER and RIS does acknowledge that India still faces some remaining legal and technical gaps in achieving full cross-border paperless trade. However, the core strength of the CPTA lies precisely in its design, which accommodates such realities. The agreement entails "soft commitments" and is characterised by a high degree of flexibility, allowing acceding countries to implement reforms at their own pace without imposing difficult or binding commitments. This structure means India is not required to achieve 100% readiness before joining; rather, accession provides the framework to address the remaining and new gaps systematically.

The economic rationale for joining is simply too compelling to ignore. According to the report, the full implementation of digital trade facilitation measures, surpassing the commitments outlined in the WTO TFA, could lead to an approximately 11% reduction in average trade costs in the Asia-Pacific region. This dramatic reduction in the cost of doing business, an improvement that exceeds the savings expected from basic WTO TFA compliance alone, would directly translate into enhanced competitiveness for Indian exports globally. Furthermore, paperless trade will particularly be helpful for MSMEs in accessing international markets, promising a boost to their trade by digitizing transferable documents.

Accession to the UN CPTA is far more than a simple formality; it is a clear, intentional signal of India's commitment to embracing digital technologies and promoting sustainable, future-ready trade practices. By joining, India can narrow the existing gaps in paperless trade facilitation and contribute to shaping the global trade agenda, rather than merely adapting to standards set by others. It is likely to strengthen India's trade in a shifting global order and is aligned with commitments that India is taking in its bilateral trade agreements with countries like the UK.

Crucially, acceding to the CPTA offers a platform for India to take a leadership role within the Asia-Pacific region. Leveraging its digital competence and best practices, India can significantly engage in capacity-building and technology-sharing, especially with developing nations, thereby accumulating greater economic and geostrategic heft.

In the current environment of global trade uncertainty, the CPTA acts as a collaborative, rules-based framework that provides much-needed certainty to India’s exporters and MSMEs. It is a mechanism that will help reduce overall logistics costs, ensuring Indian businesses achieve better integration with Global Value Chains (GVCs) and significantly improving their overall competitiveness in a challenging global market. Given the non-binding nature of the agreement and the massive, measurable economic gains on offer, India’s path forward is unequivocally clear.

India’s extensive efforts in domestic trade facilitation have positioned it perfectly for this next digital leap. Accession to the UN CPTA is a low-risk, high-reward step that signals a bold commitment to the future of digital trade, provides a mechanism to address residual legal and technical gaps, and, most importantly, promises to cut the costs of doing business by up to 11%. By joining, India will not only streamline its own cross-border trade but will also solidify its role as a regional champion for digital trade, ensuring a more integrated, competitive, and predictable future for its exporters and MSMEs. The time for accession is now. India is, therefore, uniquely positioned to drive digital trade policy discussions in the APAC region and hosted the 2nd APAC E-commerce Policy Summit on November 3-4, 2025, in New Delhi. The summit provided a unique opportunity for all stakeholders in the ecosystem to interact with an objective that digital transformation leaves no one behind.

This article is authored by Arpita Mukherjee, professor, ICRIER and Prabir De, professor, Research and Information System for Developing Countries (RIS).

 
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