By Sanskriti Global Exports by Himanshu Gupta

The Compass Points to Change: Navigating India's New Trade Headwinds and Tailwinds

Date: 11/10/2025

In the ever-shifting landscape of global commerce, a single day's news can set the course for months to come. Today is one such day for India's import-export community. We've seen a confluence of major domestic policy signals, crucial infrastructure milestones, and emerging international logistics challenges that demand immediate attention. From a foundational review of our Foreign Trade Policy (FTP) by the DGFT to record-breaking export figures in key sectors and new, concerning bottlenecks at major European ports, the day's developments are a microcosm of the opportunities and obstacles that define modern Indian trade.

As your trusted trade advisor, my goal is not just to report these events, but to dissect them, providing the critical analysis you need to make informed, strategic decisions. Let's delve into today's roundup and unpack what it truly means for your business on the ground.

Today's Trade Roundup: A Factual Summary

This morning's announcements and reports paint a complex but ultimately forward-looking picture for Indian commerce. Here are the key developments that crossed the wires:

1. DGFT Signals Mid-Term Review of Foreign Trade Policy (2023-28): The Directorate General of Foreign Trade (DGFT) issued a circular announcing the formation of a special committee to conduct a mid-term review of the current FTP. The stated objective is to enhance India's export competitiveness by focusing on three core areas: simplification of compliance, integration of MSMEs into global value chains, and creating stronger linkages between the Production-Linked Incentive (PLI) schemes and export performance. The circular hints at potential revisions to the RoDTEP scheme's rate structure and a new framework for facilitating e-commerce exports.

2. National Logistics Policy Report Confirms Significant Cost Reduction: A much-anticipated report from the Ministry of Commerce and Industry confirmed that India's logistics costs have fallen to an estimated 9.5% of GDP. This marks a significant milestone, down from figures consistently estimated at 13-14% just a few years ago. The report attributes this success to the widespread adoption of the Unified Logistics Interface Platform (ULIP), accelerated infrastructure development under the PM Gati Shakti National Master Plan, and improved turnaround times at major ports and airports.

3. Engineering Exports to GCC Nations Hit Record High: The Engineering Export Promotion Council (EEPC) released provisional data showing a remarkable 22% year-on-year growth in engineering goods exports to the Gulf Cooperation Council (GCC) region for the second quarter. Key drivers include a surge in demand for Indian-made auto components, industrial machinery, and electrical equipment, largely fueled by the robust implementation of the India-UAE Comprehensive Economic Partnership Agreement (CEPA).

4. New EU 'Green Compliance' Checks Cause Major Port Congestion: Multiple shipping lines and freight forwarder associations have issued alerts regarding significant delays and vessel backlogs at the ports of Rotterdam and Hamburg. The congestion is being attributed to the sudden, stringent implementation of the EU's new 'Supply Chain Sustainability Declaration' (SCSD) framework, which requires enhanced digital verification for all incoming goods. Indian consignments, particularly in the textiles, chemicals, and agricultural sectors, are reportedly facing extended clearance times, leading to supply chain disruptions.

Implications for Indian Import-Export Professionals

These developments are not just headlines; they are actionable intelligence. Here are the immediate strategic implications for your business:

• FTP Review Demands Proactive Engagement: The DGFT's mid-term review is not a spectator sport. This is a critical window for businesses to voice their challenges and suggestions. Action Point: Begin collating data on your RoDTEP claim experiences and compliance burdens. Engage actively with your respective Export Promotion Councils and industry bodies to ensure your sector's needs are represented in the feedback submitted to the committee. For PLI beneficiaries, this is the time to model how export incentives could amplify your manufacturing growth.
• Logistics Savings Must Be Leveraged for Competitive Edge: The reduction in domestic logistics costs is a direct financial tailwind. If you are not seeing these savings reflected in your balance sheet, you are falling behind. Action Point: Immediately initiate conversations with your logistics partners and freight forwarders to renegotiate contracts, citing the national trend. Explore multi-modal transport options made viable by new infrastructure. Use these cost savings to either improve your margins or, more strategically, to offer more competitive pricing to international buyers.
• The GCC is a High-Growth Priority Market: The EEPC data confirms what many have suspected: the GCC is no longer just a potential market; it is a primary growth engine. The success of the UAE CEPA is a blueprint for the entire region. Action Point: If you are not already exporting to the GCC, it's time to allocate resources for market entry analysis. For existing exporters, double down on this region. Focus on obtaining relevant quality certifications (like G-mark for electronics) and building strong local distribution partnerships to solidify your presence.
• EU Compliance is Now a Critical Risk Factor: The EU's port congestion is a stark reminder that market access is increasingly tied to compliance with sustainability and digital documentation standards. This is not a temporary glitch; it's the new reality of trading with the bloc. Action Point: Urgently review your documentation process for EU-bound shipments. Invest in digital tools and training to ensure your team can meet the SCSD requirements flawlessly. Build in buffer time (at least 10-15 days) into your delivery timelines for the EU and communicate these potential delays transparently with your buyers to manage expectations. Consider diversifying entry points into Europe through less congested ports in Belgium or Spain as a short-term mitigation strategy.

Conclusion: The Agile Exporter Will Thrive

Today's news encapsulates the dual reality of Indian trade in 2025. On one hand, domestic reforms and infrastructure development are creating a more efficient and cost-effective environment, providing a powerful springboard for global expansion. On the other hand, the goalposts in major international markets continue to shift, with complex new layers of compliance becoming formidable non-tariff barriers.

The successful Indian importer or exporter in this era will be defined by agility. The ability to pivot strategy, leverage domestic advantages, and proactively tackle international compliance will separate the leaders from the laggards. Stay informed, engage with policymakers, and invest in the digital and logistical resilience of your supply chain. The path forward is challenging, but for the prepared, it is rich with opportunity.

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