Why in news?
In February 2026 the Directorate General of Foreign Trade (DGFT) issued a trade notice inviting public comments on a draft Digital Trade Facilitation Bill, 2026. The proposed legislation aims to modernise India’s trade ecosystem by giving legal recognition to electronic trade documents and creating a framework for digital identity and trust services. Stakeholders have been asked to submit feedback within 30 days.
Background
The DGFT is an arm of the Ministry of Commerce and Industry responsible for implementing India’s foreign trade policy. It administers export and import licences, issues trade notices and ensures compliance with trade regulations. The draft Digital Trade Facilitation Bill is part of the government’s effort to build “Bharat Trade Net” – a digital public infrastructure for trade – announced in the Union Budget 2025–26. Current laws do not adequately recognise electronic trade documents or provide mechanisms for cross‑border digital trust, hindering seamless digital trade.
Salient features of the draft bill
- Legal recognition of electronic documents: The bill proposes that electronic trade documents (such as bills of lading and warehouse receipts) have the same legal status as paper documents. Courts and banks would be required to accept properly authenticated digital records.
- Control replaces possession: Instead of physical possession, the concept of control over an electronic document would determine ownership and the right to transfer it. This change allows digital documents to be endorsed and transferred as securely as paper documents.
- Identity and trust services: The draft sets up a governance framework for electronic seals, timestamps, registered delivery services and digital signature providers. These measures aim to ensure authenticity and integrity of electronic trade records.
- Cross‑border recognition: Digital documents and trust services issued outside India would be recognised if they meet specified reliability standards. This provision is intended to make India’s trade infrastructure interoperable with global digital trade systems.
- Evidentiary value: Electronic records created using reliable methods would be admissible as evidence in legal proceedings, reducing disputes and delays.