On 9 February, the Government of India, along with the  Ministry of Commerce and Industry, Department of Commerce, and the Directorate General of Foreign Trade, invited comments on the TradeDigital Trade Facilitation Bill, 2026. 

The Bill, announced in the Union Budget 2025-26, addresses the lack of a comprehensive legal framework that fully recognises electronic trade documents and digital trust services. It is the Indian government’s initiative to implement BharatTradeNet as a Digital Public Infrastructure for trade. 

The legal void in digital trade: Why it matters?

Trade relies heavily on documents like invoices, bills of lading, certificates of origin, and letters of credit, which have always been valid in paper form. As business moves to digital formats, the legal system needs to make sure that electronic documents are recognised as equally valid.

Without clear legal recognition, electronic trade documents risk being challenged or rejected by courts, banks, and customs authorities. This uncertainty leads to extra costs, delays, and risks, especially in international trade that involves different countries.

Also, micro, small and medium enterprises (MSMEs) make up about 90% of India’s businesses, but often struggle to access trade finance. The Bill’s recognition of electronic trade documents and digital trust services clarifies ownership and control of digital assets. This reduces uncertainty for lenders and allows receivables and movable assets to serve as reliable collateral.

“The draft bill represents a major turning point. Not only does it enable the use of electronic transferable records, but it also contains a structured and comprehensive regulation of identity management trust services. This is in line with most recent trends and will place India at the forefront of digital trade dataflows. Moreover, in passing this Bill, India may become the first jurisdiction in the world adopting the UNCITRAL Model Law on the Use and Cross-border Recognition of Identity Management and Trust Services,” said Luca Castellani, architect of the UNCITRAL Model Laws on Electronic Transferable Records (MLETR).

What does the Bill include?

The Bill provides legal recognition, validity, and enforceability to electronic trade documents. 

It sets out a regulatory framework for digital identity and trust services. These services verify the identities of trade participants, ensure the integrity of digital documents, and secure communication channels. 

The Bill regulates the use and management of digital identity and trust services, as well as their cross-border recognition. It assigns competent authorities to oversee these services to ensure compliance with financial, managerial, operational, technical, and security standards.  

It also specifies the obligations of service providers and users, including the requirement to notify in case of security breaches or credential compromises.

Where a law requires a signature or endorsement, the Bill allows for electronic methods that reliably identify the person and indicate their intention. This includes digital signatures and other electronic records, so electronic transactions have the same legal weight as paper ones.

There are also provisions for secure cross-border exchange of trade records via mechanisms that guarantee the confidentiality, authenticity, and integrity of digital trade data across different countries. 

These measures help in improving digital verification and reducing fraud risk. They also help build trust among all parties, making trade finance, customs clearance, and regulatory compliance more efficient.

What is next?

The Directorate General of Foreign Trade has invited comments and suggestions from exporters, trade associations, legal experts, academia, and other stakeholders. Inputs are to be submitted within 30 days of the issuance of the Trade Notice dated 9 February 2026. This consultative process reflects the government’s commitment to refining the Bill to meet practical needs.

The Indian Government will notify the commencement date and designate competent authorities responsible for enforcement. Effective implementation will require coordinated efforts among government agencies, financial institutions, technology providers, and trade participants.