Whalesbook
New Law Cuts Jail for Minor Export Crimes
The recent Jan Vishwas Bill marks a strategic shift in India's economic policy, moving towards 'trust-based governance.' This law aims to end the practice of jailing people for minor offenses in key export areas like textiles, handloom, and agriculture. Instead, it proposes replacing prison sentences with monetary penalties. For first-time violations, there may be a warning, with fines for repeat offenses. This approach is designed to reduce business burdens, improve India's Ease of Doing Business (EoDB) ranking, and attract foreign investment by showing a more predictable and business-friendly environment. Following the Jan Vishwas (Amendment of Provisions) Act, 2023, which changed 42 laws, this 2025 version extends the reforms to 17 central acts. This is part of India's ongoing liberalization efforts, which began in 1991, to integrate the economy more closely with global markets.
Export Sector Performance
Despite global economic challenges, India's main export sectors are showing strength. Textile and apparel exports, including handicrafts, have grown significantly. They saw a compound annual growth rate (CAGR) of 8.2% from 2020-21 to 2024-25, reaching ₹3,19,573.2 crore. In November 2025 alone, textile and apparel shipments surged by 9.40% to $2.855 billion. For April–July 2025, textile exports totaled $12.18 billion, up 3.87%. Agricultural exports are also doing well, rising 8.8% in April-September 2025 to $25.9 billion. Rice exports led the way with $12.47 billion in FY25. However, India's agricultural trade surplus has fallen to $16 billion by 2023-24, suggesting higher import costs or challenges in export competitiveness.
Global Comparisons and Risks
India's move to reduce jail time for export offenses differs from some other countries. For example, Bangladesh is creating an 'Import and Export Control Act 2024' that requires government permission for all import and export activities, indicating a trend toward tighter controls. Vietnam has strict rules for agricultural imports and rigorous food safety standards, especially for markets like the European Union, requiring extensive certification. The EU's growing focus on sustainability and circular economy principles adds complexity for exporters targeting these regions. Furthermore, geopolitical issues, such as the conflict between Israel and Iran, pose a significant risk to India's export sector. This could threaten about $11.8 billion in agri-exports and cause considerable market swings.
Potential Risks and Concerns
While the Jan Vishwas Bill aims to simplify business and build trust, potential risks need careful attention. Shifting from jail to fines, especially with warnings for first offenses, might lead to weaker compliance and enforcement if not managed closely. Competitor nations like Vietnam keep strict quality and safety rules. India's move to lighter penalties could create an impression of not meeting global standards, potentially harming its competitive position. The ongoing drop in India's agricultural trade surplus, despite export growth, suggests deeper problems with import costs or competitiveness that simply easing rules may not fix. Also, the significant $11.8 billion in agri-exports at risk from current geopolitical conflicts highlights how vulnerable India's trade is to outside events. This means regulatory changes must be paired with strong risk management strategies.
What's Next
The government is committed to lowering regulatory burdens and improving the 'ease of doing business.' There are signs of more laws to decriminalize other provisions. This continued focus on creating a smooth, export-friendly economy is expected to attract more domestic and foreign investment, helping India become a stronger global competitor. However, the success of these reforms will depend on how well they are put into practice, how consistently penalties are enforced, and ongoing efforts to match India's rules with changing international standards and market needs.