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Published: 25 August 2026
Focus Keyword: DGFT One Star Export House eligibility 2026
If your business exports goods or services from India, a new DGFT rule announced in August 2026 could make it easier to qualify for One Star Export House status.
The Directorate General of Foreign Trade (DGFT), through Notification No. 33/2026-27 dated 21 August 2026, has relaxed the export-performance requirement under the Foreign Trade Policy (FTP) 2023.
The biggest change is simple:
For applicants outside the Gems & Jewellery sector, export performance in any two of the three preceding financial years can now be sufficient for One Star Export House status, subject to the other applicable conditions.
Previously, the general requirement was export performance in all three preceding financial years.
For MSME exporters whose exports have fluctuated from year to year, this could be a meaningful opportunity.
The change has been made to Para 1.25(d) of the Foreign Trade Policy 2023.
Under the earlier provision, an exporter generally needed qualifying export performance in all three immediately preceding financial years. The revised provision creates a specific relaxation for One Star Export House applicants outside the Gems & Jewellery sector.
Now, qualifying export performance in any two of the three preceding financial years can be sufficient for One Star Export House recognition.
The amendment took effect immediately from 21 August 2026.
Suppose an eligible exporter had the required export performance in:
Under the new rule, the exporter may still qualify for One Star Export House status because the required performance exists in two of the three preceding financial years, provided all other conditions are satisfied.
This is particularly relevant for businesses that experienced one weak export year because of market conditions, cancelled orders, logistics problems, geopolitical disruptions or other business difficulties.
One Star Export House is part of India’s Status Holder framework under the Foreign Trade Policy.
DGFT recognises exporters based on their export performance and places qualifying businesses into different status categories.
The current FTP 2023 framework provides these export-performance thresholds:
| Status | Export performance threshold |
|---|---|
| One Star Export House | US$3 million |
| Two Star Export House | US$15 million |
| Three Star Export House | US$50 million |
| Four Star Export House | US$200 million |
| Five Star Export House | US$800 million |
The thresholds are based on the applicable export-performance rules under FTP 2023.
This is where exporters need to be careful.
The August 2026 notification does not say that the One Star Export House export-performance threshold has been reduced from US$3 million.
The important relaxation is about how many of the preceding financial years can be used to satisfy the performance requirement.
Therefore, businesses should not interpret the announcement as:
“You now need only US$1 million or some lower turnover.”
That would be incorrect.
The change can be understood through this comparison:
| Requirement | Earlier | From 21 August 2026 |
|---|---|---|
| General One Star Export House applicants | Performance required in all 3 preceding FYs | Performance in any 2 of preceding 3 FYs can be sufficient |
| Gems & Jewellery sector | Special rule | Existing requirement continues |
| Export threshold | US$3 million for One Star category | No change to the threshold |
| Other FTP conditions | Applicable | Continue to apply |
The DGFT notification specifically excludes the Gems & Jewellery sector from this new two-out-of-three-year relaxation.
MSME exporters often don’t have perfectly consistent export turnover every year.
A small manufacturing business might receive a large overseas order one year and experience weak demand the next. Another exporter could lose a major overseas customer temporarily or face freight, currency or geopolitical disruptions.
Under the previous framework, a weak year could make One Star recognition more difficult even if the business had demonstrated strong export performance in the other years.
The new rule provides an additional degree of flexibility.
Imagine an eligible MSME has the following export performance:
FY 2023-24: US$3.5 million
FY 2024-25: US$1.8 million
FY 2025-26: US$4.2 million
The business has strong performance in two years and a weaker middle year.
Under the revised rule, it may be able to use the two qualifying years for One Star Export House recognition, subject to the applicable conditions.
That doesn’t mean the status is automatic. The exporter still needs to satisfy the remaining requirements and follow the prescribed DGFT application process.
There is another DGFT provision that smaller exporters should know about.
The FTP framework provides double weightage for certain categories when calculating export performance for grant of One Star Export House status.
Eligible categories include:
The double-weightage benefit is specifically available for One Star Export House status, not for the higher two-, three-, four- or five-star categories.
For an eligible MSME, double weightage can make the One Star Export House threshold more achievable when its export performance is calculated under the applicable rules.
However, exporters should not simply double their turnover themselves and assume they qualify.
The eligibility calculation must follow DGFT’s applicable provisions, including the rules concerning qualifying exports and double weightage.
Becoming a status holder is not simply about receiving a certificate or a title.
The Foreign Trade Policy provides several facilities to status holders.
These include:
Authorisation and customs clearances for imports and exports may be granted on a self-declaration basis, subject to the applicable rules.
Status holders can receive priority in fixation of input-output norms by the Norms Committee.
Status holders can receive exemption from furnishing bank guarantees for schemes under the FTP, unless the policy specifically provides otherwise.
Status holders are exempt from compulsory negotiation of documents through banks, although export receipts and import payments still have to be handled through banking channels as applicable.
Status holders are entitled to preferential treatment and priority in handling of consignments by concerned agencies.
The FTP 2023 sets out these status-holder privileges.
Important: Not every benefit applies identically to every status category. Some facilities, such as export warehouses and certain self-certification provisions, are specifically available to higher-level status holders.
The 2026 relaxation could be particularly relevant to:
If your export business had one poor year but performed strongly in the other two relevant years, now is a good time to reassess your eligibility.
The new rule does not mean every exporter with two good years automatically becomes a One Star Export House.
Other conditions under FTP 2023 continue to apply.
For example, the FTP states that:
The Gems & Jewellery sector also has a separate requirement, so exporters in that sector should not apply the general two-out-of-three rule without checking the specific provision.
If you are considering One Star Export House status, don’t start by filing an application blindly.
First, review your export history.
Make sure your Importer Exporter Code (IEC) and associated business details are correct.
Prepare your export-performance figures for each of the relevant financial years.
For non-Gems & Jewellery applicants, the new rule allows qualifying performance in any two of the three preceding financial years, subject to the other requirements.
If your business qualifies as an MSME or falls within another eligible category, check whether double weightage can be claimed for One Star Export House calculation.
Don’t rely only on your accounting turnover.
The applicable DGFT rules determine what constitutes export performance for status recognition.
Make sure there are no issues involving IEC, export documentation, re-exports, transfer of export performance or other applicable requirements.
After confirming eligibility, follow the current DGFT procedure for status-holder recognition and submit the required documentation.
CTA:
👉 If your MSME had a strong export year, one weak year and another strong year, don’t assume you missed your chance. Check the new DGFT two-out-of-three-year rule before planning your next application.
Consider an exporter whose qualifying export performance was:
| Financial year | Performance |
|---|---|
| FY 2023-24 | Meets requirement |
| FY 2024-25 | Does not meet requirement |
| FY 2025-26 | Meets requirement |
The exporter generally needed performance in all three preceding financial years.
Result: Could fail the year-based requirement.
For One Star Export House applicants outside Gems & Jewellery:
Two qualifying years out of the three can be sufficient, subject to the other conditions.
Result: The exporter may now qualify.
This is the practical difference created by the notification.
India has been trying to bring more small and medium businesses into international markets.
For many MSMEs, exporting isn’t a straight-line journey. Orders can fluctuate significantly because of:
A business can therefore have two very strong export years without having consistent performance in every year.
The 2026 change recognises that reality to some extent by giving eligible One Star applicants greater flexibility in satisfying the year-based performance condition.
For an MSME trying to build a long-term export business, that can be more meaningful than it initially appears.
DGFT has allowed applicants outside the Gems & Jewellery sector to qualify for One Star Export House status based on export performance in any two of the three preceding financial years, subject to the other applicable FTP conditions.
Under FTP 2023, the One Star Export House export-performance threshold is US$3 million. The August 2026 notification changes the year-based performance requirement; it does not announce a reduction of this threshold.
Yes. MSMEs are among the categories eligible for double weightage for calculating export performance for One Star Export House status, subject to the applicable DGFT provisions.
No. The new two-out-of-three-year relaxation specifically excludes the Gems & Jewellery sector. The sector’s existing requirement continues to apply.
No. Status-holder recognition provides specified facilities and privileges under the FTP. It should not be confused with an automatic cash incentive or subsidy.
Yes. DGFT Notification No. 33/2026-27 dated 21 August 2026 states that the amendment takes effect immediately.
The latest DGFT change is small in wording but potentially important for exporters.
The key takeaway is:
For One Star Export House applicants outside the Gems & Jewellery sector, export performance in any two of the three preceding financial years can now be sufficient, subject to the remaining conditions under FTP 2023.
The US$3 million One Star threshold remains the relevant export-performance threshold, while eligible MSMEs can also benefit from the existing double-weightage provision.
For an MSME exporter that had one weak export year between two strong years, this change could be worth checking immediately.
BusinessZindagi recommendation: Before applying, compare your last three financial years, identify your qualifying export performance, check your MSME/double-weightage eligibility and verify the current DGFT application requirements.
Absolutely. This is a strong BusinessZindagi topic because the change is very recent, directly affects exporters, and has a particularly useful angle for MSMEs. I’ve also corrected an important point: the ₹/$ export-performance threshold itself has not been reduced by this notification; the key change is the number of qualifying years that can be used for One Star Export House recognition.
dgft-one-star-export-house-eligibility-2026DGFT Changes Export House Rules in 2026: New One Star Export House Eligibility Explained for MSMEs
Published: 25 August 2026
Focus Keyword: DGFT One Star Export House eligibility 2026
If your business exports goods or services from India, a new DGFT rule announced in August 2026 could make it easier to qualify for One Star Export House status.
The Directorate General of Foreign Trade (DGFT), through Notification No. 33/2026-27 dated 21 August 2026, has relaxed the export-performance requirement under the Foreign Trade Policy (FTP) 2023.
The biggest change is simple:
For applicants outside the Gems & Jewellery sector, export performance in any two of the three preceding financial years can now be sufficient for One Star Export House status, subject to the other applicable conditions.
Previously, the general requirement was export performance in all three preceding financial years.
For MSME exporters whose exports have fluctuated from year to year, this could be a meaningful opportunity.
The change has been made to Para 1.25(d) of the Foreign Trade Policy 2023.
Under the earlier provision, an exporter generally needed qualifying export performance in all three immediately preceding financial years. The revised provision creates a specific relaxation for One Star Export House applicants outside the Gems & Jewellery sector.
Now, qualifying export performance in any two of the three preceding financial years can be sufficient for One Star Export House recognition.
The amendment took effect immediately from 21 August 2026.
Suppose an eligible exporter had the required export performance in:
Under the new rule, the exporter may still qualify for One Star Export House status because the required performance exists in two of the three preceding financial years, provided all other conditions are satisfied.
This is particularly relevant for businesses that experienced one weak export year because of market conditions, cancelled orders, logistics problems, geopolitical disruptions or other business difficulties.
One Star Export House is part of India’s Status Holder framework under the Foreign Trade Policy.
DGFT recognises exporters based on their export performance and places qualifying businesses into different status categories.
The current FTP 2023 framework provides these export-performance thresholds:
| Status | Export performance threshold |
|---|---|
| One Star Export House | US$3 million |
| Two Star Export House | US$15 million |
| Three Star Export House | US$50 million |
| Four Star Export House | US$200 million |
| Five Star Export House | US$800 million |
The thresholds are based on the applicable export-performance rules under FTP 2023.
This is where exporters need to be careful.
The August 2026 notification does not say that the One Star Export House export-performance threshold has been reduced from US$3 million.
The important relaxation is about how many of the preceding financial years can be used to satisfy the performance requirement.
Therefore, businesses should not interpret the announcement as:
“You now need only US$1 million or some lower turnover.”
That would be incorrect.
The change can be understood through this comparison:
| Requirement | Earlier | From 21 August 2026 |
| General One Star Export House applicants | Performance required in all 3 preceding FYs | Performance in any 2 of preceding 3 FYs can be sufficient |
| Gems & Jewellery sector | Special rule | Existing requirement continues |
| Export threshold | US$3 million for One Star category | No change to the threshold |
| Other FTP conditions | Applicable | Continue to apply |
The DGFT notification specifically excludes the Gems & Jewellery sector from this new two-out-of-three-year relaxation.
MSME exporters often don’t have perfectly consistent export turnover every year.
A small manufacturing business might receive a large overseas order one year and experience weak demand the next. Another exporter could lose a major overseas customer temporarily or face freight, currency or geopolitical disruptions.
Under the previous framework, a weak year could make One Star recognition more difficult even if the business had demonstrated strong export performance in the other years.
The new rule provides an additional degree of flexibility.
Imagine an eligible MSME has the following export performance:
FY 2023-24: US$3.5 million
FY 2024-25: US$1.8 million
FY 2025-26: US$4.2 million
The business has strong performance in two years and a weaker middle year.
Under the revised rule, it may be able to use the two qualifying years for One Star Export House recognition, subject to the applicable conditions.
That doesn’t mean the status is automatic. The exporter still needs to satisfy the remaining requirements and follow the prescribed DGFT application process.
There is another DGFT provision that smaller exporters should know about.
The FTP framework provides double weightage for certain categories when calculating export performance for grant of One Star Export House status.
Eligible categories include:
The double-weightage benefit is specifically available for One Star Export House status, not for the higher two-, three-, four- or five-star categories.
For an eligible MSME, double weightage can make the One Star Export House threshold more achievable when its export performance is calculated under the applicable rules.
However, exporters should not simply double their turnover themselves and assume they qualify.
The eligibility calculation must follow DGFT’s applicable provisions, including the rules concerning qualifying exports and double weightage.
Becoming a status holder is not simply about receiving a certificate or a title.
The Foreign Trade Policy provides several facilities to status holders.
These include:
Authorisation and customs clearances for imports and exports may be granted on a self-declaration basis, subject to the applicable rules.
Status holders can receive priority in fixation of input-output norms by the Norms Committee.
Status holders can receive exemption from furnishing bank guarantees for schemes under the FTP, unless the policy specifically provides otherwise.
Status holders are exempt from compulsory negotiation of documents through banks, although export receipts and import payments still have to be handled through banking channels as applicable.
Status holders are entitled to preferential treatment and priority in handling of consignments by concerned agencies.
The FTP 2023 sets out these status-holder privileges.
Important: Not every benefit applies identically to every status category. Some facilities, such as export warehouses and certain self-certification provisions, are specifically available to higher-level status holders.
The 2026 relaxation could be particularly relevant to:
If your export business had one poor year but performed strongly in the other two relevant years, now is a good time to reassess your eligibility.
The new rule does not mean every exporter with two good years automatically becomes a One Star Export House.
Other conditions under FTP 2023 continue to apply.
For example, the FTP states that:
The Gems & Jewellery sector also has a separate requirement, so exporters in that sector should not apply the general two-out-of-three rule without checking the specific provision.
If you are considering One Star Export House status, don’t start by filing an application blindly.
First, review your export history.
Make sure your Importer Exporter Code (IEC) and associated business details are correct.
Prepare your export-performance figures for each of the relevant financial years.
For non-Gems & Jewellery applicants, the new rule allows qualifying performance in any two of the three preceding financial years, subject to the other requirements.
If your business qualifies as an MSME or falls within another eligible category, check whether double weightage can be claimed for One Star Export House calculation.
Don’t rely only on your accounting turnover.
The applicable DGFT rules determine what constitutes export performance for status recognition.
Make sure there are no issues involving IEC, export documentation, re-exports, transfer of export performance or other applicable requirements.
After confirming eligibility, follow the current DGFT procedure for status-holder recognition and submit the required documentation.
CTA:
👉 If your MSME had a strong export year, one weak year and another strong year, don’t assume you missed your chance. Check the new DGFT two-out-of-three-year rule before planning your next application.
Consider an exporter whose qualifying export performance was:
| Financial year | Performance |
| FY 2023-24 | Meets requirement |
| FY 2024-25 | Does not meet requirement |
| FY 2025-26 | Meets requirement |
The exporter generally needed performance in all three preceding financial years.
Result: Could fail the year-based requirement.
For One Star Export House applicants outside Gems & Jewellery:
Two qualifying years out of the three can be sufficient, subject to the other conditions.
Result: The exporter may now qualify.
This is the practical difference created by the notification.
India has been trying to bring more small and medium businesses into international markets.
For many MSMEs, exporting isn’t a straight-line journey. Orders can fluctuate significantly because of:
A business can therefore have two very strong export years without having consistent performance in every year.
The 2026 change recognises that reality to some extent by giving eligible One Star applicants greater flexibility in satisfying the year-based performance condition.
For an MSME trying to build a long-term export business, that can be more meaningful than it initially appears.
DGFT has allowed applicants outside the Gems & Jewellery sector to qualify for One Star Export House status based on export performance in any two of the three preceding financial years, subject to the other applicable FTP conditions.
Under FTP 2023, the One Star Export House export-performance threshold is US$3 million. The August 2026 notification changes the year-based performance requirement; it does not announce a reduction of this threshold.
Yes. MSMEs are among the categories eligible for double weightage for calculating export performance for One Star Export House status, subject to the applicable DGFT provisions.
No. The new two-out-of-three-year relaxation specifically excludes the Gems & Jewellery sector. The sector’s existing requirement continues to apply.
No. Status-holder recognition provides specified facilities and privileges under the FTP. It should not be confused with an automatic cash incentive or subsidy.
Yes. DGFT Notification No. 33/2026-27 dated 21 August 2026 states that the amendment takes effect immediately.
The latest DGFT change is small in wording but potentially important for exporters.
The key takeaway is:
For One Star Export House applicants outside the Gems & Jewellery sector, export performance in any two of the three preceding financial years can now be sufficient, subject to the remaining conditions under FTP 2023.
The US$3 million One Star threshold remains the relevant export-performance threshold, while eligible MSMEs can also benefit from the existing double-weightage provision.
For an MSME exporter that had one weak export year between two strong years, this change could be worth checking immediately.
BusinessZindagi recommendation: Before applying, compare your last three financial years, identify your qualifying export performance, check your MSME/double-weightage eligibility and verify the current DGFT application requirements.
BusinessZindagi Editorial Team
The BusinessZindagi Editorial Team covers Indian MSME policy, entrepreneurship, taxation, finance, exports, government schemes and practical business regulations. Our aim is to convert complicated government notifications and policy changes into simple, useful information for Indian entrepreneurs and small businesses.
This article has been prepared with the assistance of AI for research organisation, explanation and editorial drafting. The information is based on publicly available government and regulatory material and has been reviewed for clarity.
Government rules, DGFT procedures and eligibility requirements can change. This article is intended for general informational and educational purposes only and should not be treated as legal, tax, financial or professional advice.
Exporters should verify the latest notification, Foreign Trade Policy, Handbook of Procedures and DGFT portal requirements before taking action or submitting an application.
1. DGFT — Foreign Trade Policy 2023
DGFT Foreign Trade Policy 2023
2. DGFT — Foreign Trade Policy 2023 PDF
Read the official Foreign Trade Policy 2023
3. DGFT — Official website and online services
Directorate General of Foreign Trade
4. DGFT Notification No. 33/2026-27 — 21 August 2026
The notification amends Para 1.25(d) of FTP 2023 and introduces the two-out-of-three-year relaxation for One Star Export House applicants outside the Gems & Jewellery sector.
5. Economic Times — Report on the August 2026 DGFT change
Economic Times report on the One Star Export House relaxation
Prompt:
Create a premium editorial news illustration for an Indian business website about the 2026 DGFT One Star Export House rule change. Show a confident Indian MSME exporter/business owner in a modern warehouse or small manufacturing facility, with export cartons and shipping containers in the background, subtle India map and international trade routes, a digital document symbol representing DGFT/export certification, and a prominent elegant “ONE STAR EXPORT HOUSE” visual concept. Include subtle visual cues of exports, foreign trade, MSMEs and international shipping. Professional Indian business-news aesthetic, realistic photography mixed with clean editorial graphics, sophisticated corporate look, bright natural lighting, blue and white business palette with restrained Indian saffron accents, high credibility, no clutter, no fake government logos, no excessive text. Leave clear negative space on the left/top area for the article headline. 16:9 landscape composition, highly polished, Google Discover friendly, photorealistic, sharp subject, premium financial-news magazine style, 4K quality. Do not put long text, paragraphs, website names or watermarks inside the image.
Recommended image filename: dgft-one-star-export-house-eligibility-2026.webp
Recommended ALT text: DGFT One Star Export House eligibility 2026 for MSME exporters
Recommended image caption: DGFT has relaxed the year-based export-performance requirement for One Star Export House status outside the Gems & Jewellery sector.
Add suggested article clickable link from businesszindagi.com articles ,short and crunchy links
Yes. I checked BusinessZindagi’s existing articles and would add 5–6 internal links, but keep them short and natural so the article doesn’t look over-optimized.
For MSMEs trying to expand internationally, understanding where India’s small businesses are already exporting can be useful. Read our [MSME Export Data 2025 guide] for sector and market insights.
If you’re planning to increase exports, working capital can become just as important as finding overseas buyers. See our [Collateral-Free MSME Loan Guide].
Export finance can also affect your ability to accept larger international orders. Our [Export Interest Subsidy guide] explains the available support.
Once you understand your product and target market, the next challenge is finding genuine buyers. See our [Global Trade Data guide].
Before preparing export documents, make sure you understand the correct classification of your product. Our [HS Code for Export guide] can help.
My recommendation: use 4 links in the body + 2 under “Related BusinessZindagi Guides”. That’s enough internal linking without making the article feel stuffed with links.
Give me copy paste style
BusinessZindagi Editorial Team
The BusinessZindagi Editorial Team covers Indian MSME policy, entrepreneurship, taxation, finance, exports, government schemes and practical business regulations. Our aim is to convert complicated government notifications and policy changes into simple, useful information for Indian entrepreneurs and small businesses.
This article has been prepared with the assistance of AI for research organisation, explanation and editorial drafting. The information is based on publicly available government and regulatory material and has been reviewed for clarity.
Government rules, DGFT procedures and eligibility requirements can change. This article is intended for general informational and educational purposes only and should not be treated as legal, tax, financial or professional advice.
Exporters should verify the latest notification, Foreign Trade Policy, Handbook of Procedures and DGFT portal requirements before taking action or submitting an application.
1. DGFT — Foreign Trade Policy 2023
DGFT Foreign Trade Policy 2023
2. DGFT — Foreign Trade Policy 2023 PDF
Read the official Foreign Trade Policy 2023
3. DGFT — Official website and online services
Directorate General of Foreign Trade
4. DGFT Notification No. 33/2026-27 — 21 August 2026
The notification amends Para 1.25(d) of FTP 2023 and introduces the two-out-of-three-year relaxation for One Star Export House applicants outside the Gems & Jewellery sector.
5. Economic Times — Report on the August 2026 DGFT change
Economic Times report on the One Star Export House relaxation
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