What Is DGFT?
- Author:
- Manoj Sharma
- Verified by:
- Editorial team
- Published:
- Last modified:
Short answer
DGFT stands for the Directorate General of Foreign Trade. It is India's main authority for foreign trade, under the Ministry of Commerce and Industry. DGFT administers the Foreign Trade Policy, issues the Importer-Exporter Code (IEC) and runs export promotion schemes such as EPCG, RoDTEP and Advance Authorisation.
| Full form | Governed by | Best for | Where it is used | Related terms |
|---|---|---|---|---|
| Directorate General of Foreign Trade | Ministry of Commerce and Industry, Government of India | Goods exporters, importers and service exporters who claim Foreign Trade Policy benefits | IEC applications, export promotion schemes, trade notifications and public notices | IEC, RCMC, RoDTEP, EPCG, RBI |
What does DGFT mean in simple words?
DGFT is the government body that manages India's foreign trade policy. According to its official website, it operates under the Ministry of Commerce and Industry and is responsible for administering the Foreign Trade Policy, issuing the IEC, running export promotion schemes and issuing notifications, circulars and public notices. DGFT deals with trade rules and registrations. It does not regulate foreign exchange or the bank side of receiving export payments. That role sits with RBI under FEMA. An exporter therefore often deals with both bodies for different reasons.
For example, a handicraft exporter applies on the DGFT portal for an IEC and later checks DGFT notifications for scheme benefits. The same exporter's bank handles the foreign exchange side under RBI rules.
Why does DGFT matter for Indian exporters and freelancers?
- Registration: DGFT issues the IEC, which its IEC page describes as mandatory for export from or import to India, with a services exception.
- Schemes: DGFT administers export schemes such as EPCG, RoDTEP and Advance Authorisation, according to its website.
- Bank compliance: Banks may ask for the IEC on goods export documents. Foreign exchange rules come from RBI, not DGFT. Ask your AD bank what it needs.
- GST and tax: DGFT registration is separate from GST and income tax registration, and one does not replace the others.
How does DGFT work?
DGFT sets and publishes trade policy and runs registrations and schemes through its online portal. Exporters interact with it when they register or claim a scheme benefit.
- DGFT, under the Ministry of Commerce and Industry, publishes the Foreign Trade Policy and related notifications.
- Exporters register on the DGFT portal, for example to get an IEC.
- Exporters apply for schemes they are eligible for through the portal.
- DGFT issues public notices and circulars that change procedures.
- Exporters check the portal for current rules before each filing.
How do you use the DGFT portal?
You use the DGFT portal at dgft.gov.in to apply for an IEC and for scheme services. Which services you need depends on whether you export goods or services and on the benefits you claim.
- Decide whether you export goods or services and which benefits you want to claim.
- Open the DGFT portal at dgft.gov.in and register or log in.
- Apply for the IEC if your exports need one, using the IEC guide.
- Apply for any scheme you qualify for, such as RoDTEP or EPCG.
- Check DGFT notifications and public notices before each filing.
What do people get wrong about DGFT?
- Same as RBI: DGFT handles trade policy and registrations. RBI makes the foreign exchange rules under FEMA.
- Only for goods: DGFT also states that service providers who take Foreign Trade Policy benefits are covered. Check the IEC page for your case.
- Same as customs: Customs handles shipping bills and clearance. DGFT handles policy and registrations.
- Needed for every freelancer: DGFT says an IEC is not necessary for services exports unless Foreign Trade Policy benefits are taken.
How did we verify this?
Every rule and definition on this page is linked to its official source, checked on the dates below.
- DGFT About Us, Role, ministry and functions (checked 9 Oct 2026)
- DGFT IEC Profile Management, IEC applicability (checked 9 Oct 2026)
FAQs about DGFT
Which ministry does DGFT work under?
DGFT works under the Ministry of Commerce and Industry, Government of India, as stated on the DGFT website. It is the main authority for administering the Foreign Trade Policy and related export and import procedures. Confirm the current position on the official source listed on this page before you act, as rules and procedures can change.
Does DGFT issue the IEC?
Yes. DGFT issues the Importer-Exporter Code and describes it as a key business identification number mandatory for export from or import to India, except for services exports that take no Foreign Trade Policy benefits. Confirm the current position on the official source listed on this page before you act, as rules and procedures can change.
Does DGFT regulate foreign exchange receipts?
No. Foreign exchange rules for export receipts come from RBI under FEMA. DGFT handles trade policy, registrations and schemes. For payment questions, ask your AD bank and read the relevant RBI regulations. Confirm the current position on the official source listed on this page before you act, as rules and procedures can change.
Where can exporters find DGFT notifications?
Exporters can find notifications, circulars and public notices on the DGFT website at dgft.gov.in. DGFT lists these among its tools for enforcing trade rules, so check there for the current position before filing. Confirm the current position on the official source listed on this page before you act, as rules and procedures can change.
Do freelancers deal with DGFT?
Only sometimes. DGFT says an IEC is not necessary for services exports unless the provider takes Foreign Trade Policy benefits. A freelancer claiming no such benefit may have no DGFT registration requirement. Confirm on the DGFT portal. Confirm the current position on the official source listed on this page before you act, as rules and procedures can change.