Traders in Uttar Pradesh are calling for the establishment of a regulatory body to enhance the security of foreign trade, citing a rise in fraud and payment failures. On August 14,2026, during a meeting,they expressed concerns over lack of protection against these issues, which they claim are jeopardizing their businesses .
Samir Qaiym,a trader from Kanpur, shared his distress over a significant loss of over ₹25 lakhs due to a client based in Bangladesh. He emphasized that this incident is not isolated,as many traders face similar challenges,including payment defaults and container thefts at ports. "Common issues we encounter include payments stuck in foreign banks, and often,the foreign customer disappears," he explained.
The current framework for safeguarding Indian exporters is limited. India’s exports are valued at approximately $860 billion, while imports stand at around $979 billion,accounting for nearly 50% of the country’s GDP. Traders rely primarily on instruments like the Export and Bank Letters of Credit (L.C.) for protection. However,the ECGC's process for recovering funds in cases of payment failures often involves lengthy legal battles with foreign lawyers, which can be ineffective if the debtor goes into hiding.
Qaiym's call for dedicated regulatory body aims to streamline support for traders facing fraud and payment issues . He suggested that such a body should be established in major states to assist in cross-border commercial disputes . His sentiments were echoed by Shobhit Mehrotra, a brass trader from Moradabad, who has also experienced payment defaults from foreign clients. Mehrotra proposed that the regulatory body should have offices in key exporting states to facilitate connections with local embassies and law enforcement .
“They can coordinate with local intelligence to track down fraudsters,” Mehrotra added, highlighting the need for a more proactive approach to combat these issues .
Support for this initiative extends beyond trading community. Vineet Singh, a Deputy Superintendent of Police in Uttar Pradesh,endorsed the proposal,suggesting that the regulatory framework should include professionals from various relevant fields. He outlined that the team could consist of legal experts, police officers experienced in fraud investigations,and representatives from the Ministry of External Affairs.
Singh emphasized the importance of two-way cooperation mechanism. “If foreign company or individual encounters fraud involving an Indian business,they should also be able to reach out through their embassy,” he stated. This approach would allow foreign authorities to collaborate with Indian law enforcement and regulatory bodies to address disputes effectively.
Such a framework could enhance trust and accountability in international trade, providing legitimate businesses with a structured system to navigate cross-border fraud and disputes. Singh believes that this initiative could significantly improve confidence of traders in Uttar Pradesh and beyond,fostering a more secure trading environment.
The demand for a regulatory body reflects the urgent need for better protection mechanisms in foreign trade, as traders continue to face mounting challenges. The establishment of such a body could not only safeguard their interests but also bolster India's position in the global market.
