By Sanskriti Global Exports by Himanshu Gupta

Navigating the Tides: DGFT's 'Make in India' Push, UK FTA Hopes, and Logistics Wins

October 22, 2025 – In the dynamic world of international trade, standing still is moving backward. Today’s developments are a testament to this reality, bringing a potent mix of strategic policy shifts, diplomatic progress, and critical infrastructure enhancements that will directly impact every Indian importer and exporter. From a significant tightening of electronics import norms by the Directorate General of Foreign Trade (DGFT) to a landmark breakthrough in the long-negotiated India-UK Free Trade Agreement (FTA), the landscape is shifting under our feet.

As your dedicated trade advisor and analyst, my role is to cut through the noise and provide actionable intelligence. This article will dissect today’s key events, offering a clear-eyed summary and, more importantly, a detailed breakdown of the implications for your supply chains, market access, and bottom line. Let’s delve into the developments that demand your immediate attention.

Factual Summary: Today’s Key Developments

Here is a concise roundup of the four major trade-related news items from today:

1. DGFT Restricts Imports of Specific Electronics Components

In a decisive move to bolster domestic manufacturing under the Production-Linked Incentive (PLI) schemes, the DGFT issued Notification No. 48/2025-26, moving a specific list of 78 electronic components from the 'Free' to the 'Restricted' import category. This list primarily includes certain types of passive components like capacitors and resistors, as well as specific semiconductor discretes that now have significant domestic production capacity. The notification, effective from December 1, 2025, mandates that importers will now require a specific license from the DGFT for these items, a move designed to curb non-essential imports and encourage sourcing from local manufacturers.

2. Breakthrough Achieved in India-UK FTA on Rules of Origin

Sources within the Ministry of Commerce and Industry have confirmed a major breakthrough in the ongoing India-UK FTA negotiations. Both sides have reportedly reached a consensus on the contentious 'Rules of Origin' criteria for two critical sectors: textiles and automotive components. The agreement is said to establish a mutually acceptable threshold for value addition and product-specific rules, which would allow Indian textile and auto part exporters preferential access to the UK market once the FTA is finalized. While the full text is not yet public, this development is being hailed as a pivotal step toward concluding the comprehensive trade pact.

3. JNPT's New Container Terminal Becomes Fully Operational

The Jawaharlal Nehru Port Trust (JNPT) announced that its new, highly automated 'Nhava Sheva V' container terminal is now fully operational, two months ahead of schedule. The terminal, equipped with state-of-the-art cranes and a digital gate complex, adds a capacity of 1.8 million TEUs (Twenty-foot Equivalent Units) annually. Port authorities project that this expansion will reduce vessel turnaround times by an average of 18-20% and significantly alleviate the congestion that has periodically plagued India’s busiest container port.

4. CBIC Launches 'SWIFT-Drawback' Portal for Faster Refunds

In a boost for exporter liquidity, the Central Board of Indirect Taxes and Customs (CBIC) has launched the 'SWIFT-Drawback' portal. This new AI-enabled platform aims to digitize and fast-track the entire duty drawback process. Exporters can now submit all required documentation online and track their application status in real-time. CBIC claims the system will reduce the average claim processing time from the current 15 days to just 3-5 working days, unlocking crucial working capital for businesses.

Implications for Indian Import-Export Professionals

Understanding the news is one thing; preparing your business for its impact is another. Here are the strategic implications and recommended actions based on today's events:

• Electronics Importers & Assemblers: Re-evaluate Your Supply Chain Immediately. The DGFT's new restrictions are a direct challenge. You must immediately audit your Bill of Materials (BoM) to identify any of the 78 components. Begin urgent conversations with domestic suppliers to assess their capacity, quality, and pricing. For components where no viable domestic alternative exists, you must begin the license application process with DGFT now to avoid crippling production delays come December. Expect short-term price volatility.
• Domestic Electronics Manufacturers: Seize the Opportunity. This is a clear signal from the government. If you manufacture any of the restricted components, this is your moment to scale up. Proactively reach out to large assemblers and OEMs who will now be looking for local partners. Highlight your PLI scheme benefits and production capacity to secure long-term contracts.
• Textile & Auto Ancillary Exporters: Prepare for a Competitive Edge in the UK. The FTA breakthrough is your cue to get ready. Begin reviewing your production processes to ensure you can meet the anticipated 'Rules of Origin' criteria. Start preparing the necessary documentation to prove origin. Engage with your UK-based buyers and partners, apprising them of this development to position yourself as a preferred supplier once the duty benefits kick in.
• Logistics Managers & Freight Forwarders: Leverage the JNPT Advantage. The full operation of the new JNPT terminal is a tangible benefit. Instruct your logistics teams to immediately engage with shipping lines and freight forwarders to explore routing cargo through the new terminal. Inquire about potentially lower terminal handling charges or preferential berthing windows. The promised reduction in turnaround time can translate directly into lower demurrage costs and a more predictable supply chain for West Coast-bound traffic.
• All Exporters: Fast-Track Your Working Capital Cycle. The CBIC's 'SWIFT-Drawback' portal is a direct cash flow enhancement tool. Ensure your finance and export documentation teams are trained on this new platform immediately. Migrating to this system should be a top priority. Faster access to your duty drawback funds means more liquidity for operations, expansion, and navigating market volatility.

Conclusion: A Day of Strategic Realignment

Today’s news is a microcosm of the current global trade environment: a blend of strategic protectionism to foster domestic industry, aggressive diplomacy to open new markets, and domestic reforms to enhance competitiveness. For the Indian import-export professional, the message is clear: agility is paramount. The DGFT's move on electronics necessitates a rapid pivot in sourcing strategies, while the UK FTA news demands proactive market positioning. Meanwhile, infrastructure and digital upgrades at our ports and with customs offer real-world efficiencies that can be captured by those who act swiftly.

Success will belong to the businesses that not only read the headlines but also read between the lines, translating policy shifts and infrastructure upgrades into a tangible competitive advantage. Stay informed, stay agile, and stay ahead.

Source: Original