The Directorate General of Foreign Trade (DGFT) has invited comments from exporters, industry bodies, legal experts, academia, and other stakeholders on the draft Digital Trade Facilitation Bill, 2026.
The move follows the Union Budget 2025–26 announcement to implement BharatTradeNet as a Digital Public Infrastructure for trade.
The government noted that the existing legal framework does not adequately recognise electronic trade documents or provide a comprehensive foundation for cross-border digital trust services, thereby constraining interoperability with global digital trade systems.
Objective of Digital Trade Facilitation Bill, 2026
The proposed legislation aims to grant statutory recognition to electronic trade documents, establish trusted digital verification mechanisms, and facilitate the secure cross-border exchange of trade records.
Once enacted, the law is expected to significantly reduce reliance on paper-based documentation, enhance efficiency in international trade, and align India with evolving global standards in digital commerce.
Key Features of the Draft Bill
1. Legal Validity of Electronic Trade Documents
The Bill clearly states that an electronic trade document shall not be denied legal effect, validity, or enforceability solely because it is in electronic form, provided it complies with the prescribed requirements.
2. Reliable Digital Framework
To qualify as valid, electronic documents must:
- Contain the required information equivalent to paper documents;
- Use reliable methods to ensure identification, control, integrity, and auditability; and
- Maintain a verifiable trail from creation to extinction.
Trade Notice No. 24 :2025-26
The Central Government will have the authority to prescribe standards ensuring authenticity, integrity, and interoperability while remaining technology-neutral.
3. Concept of “Control” Equivalent to Possession
The Bill introduces the concept of “control” over electronic documents. Establishing control through a reliable method will be deemed equivalent to possession of a paper document and carry the same legal consequences.
4. Seamless Conversion Between Paper and Electronic Forms
Trade documents may be converted from paper to electronic form and vice versa using reliable methods. Once converted, the original form ceases to have effect while all rights and liabilities continue in the new format.
Identity Management and Trust Services
A dedicated chapter recognises electronic identification, trust services, digital signatures, seals, timestamps, electronic archiving, and registered delivery services as legally admissible tools.
Service providers will be required to maintain operational policies, ensure security, provide breach reporting mechanisms, and may be held liable for losses caused by failure to comply with statutory obligations.
Subscribers, in turn, must notify providers if their identity credentials are compromised or at risk.
Cross-Border Recognition
Significantly, electronic trade documents issued outside India will not be denied legal validity merely due to their foreign origin. Foreign identity management and trust services may also be recognised if they offer equivalent or higher reliability standards.
The Central Government may formally recognise foreign digital documentation frameworks under bilateral or multilateral arrangements, making such recognition binding on domestic authorities.
Evidentiary Value in Legal Proceedings
Electronic trade documents created through reliable methods will be presumed authentic and admissible as evidence in civil, commercial, or regulatory proceedings, subject to rebuttal if material alteration is proven.
Proposed Amendments to Existing Laws
The draft legislation also proposes amendments to key statutes, including:
- Allowing negotiable instruments such as promissory notes, bills of exchange, and cheques to exist in electronic form;
- Expanding the definition of “instrument” under the Indian Stamp Act to include electronic trade documents.
Trade Notice No. 24 :2025-26
Timeline for Feedback
Stakeholders have been asked to submit inputs within 30 days of the issuance of the Trade Notice via email at tradefinance-dgft@gov.in.
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