By Sanskriti Global Exports by Himanshu Gupta
India Trade Navigator: Your Guide Through a Shifting Global Landscape
Date: February 15, 2026
Introduction
Good morning, and welcome to your essential trade briefing. In the fast-evolving theatre of global commerce, today presents a confluence of regulatory shifts, protectionist measures, and strategic domestic policies that will directly impact every Indian importer and exporter. The currents are shifting on three major fronts: Europe is doubling down on its green agenda, the United States is tightening its grip on the technology supply chain, and back home, New Delhi is decisively pushing India into a new era of green manufacturing. For the unprepared, these developments are obstacles. For the informed and agile, they are gateways to new opportunities. As your trusted trade advisor, my goal is to dissect these complex events and provide the clear-eyed analysis you need to navigate the path ahead.
Factual Summary: Key Global & Domestic Developments
Today's roundup is dominated by three significant announcements that require immediate attention from the Indian trade community.
1. European Union Expands Carbon Border Adjustment Mechanism (CBAM)
The European Commission, following a review of the initial phase, has officially announced the expansion of its Carbon Border Adjustment Mechanism. Effective Q3 2026, the CBAM will now include textiles, polymers, and select organic chemicals. This is a major expansion from the initial list of iron, steel, cement, aluminium, fertilisers, and electricity. The directive means Indian exporters in these newly added sectors will be required to meticulously document and report the embedded carbon emissions in their products. By 2028, they will need to purchase CBAM certificates corresponding to the carbon price that would have been paid had the goods been produced under the EU's own carbon pricing rules.
2. United States Announces New Tariffs on High-Tech Components
Citing national security concerns and aiming to bolster domestic manufacturing, the U.S. Commerce Department has imposed new, targeted tariffs under Section 301. The tariffs, ranging from 25% to 40%, will apply to a specific list of high-tech goods, primarily impacting imports from China but with potential ripple effects globally. The list includes next-generation semiconductor manufacturing equipment, specialized EV battery components (specifically cathodes and anodes), and advanced robotics systems. The move is seen as a direct escalation of the tech-trade rivalry and aims to de-risk American supply chains from dependency on specific nations.
3. Government of India Launches PLI Scheme for Green Hydrogen Ecosystem
In a significant domestic policy move, the Union Cabinet has approved a new Production Linked Incentive (PLI) scheme dedicated to the Green Hydrogen ecosystem. With an initial outlay of ₹25,000 crore, the scheme aims to incentivise the domestic manufacturing of critical components such as electrolysers, hydrogen storage tanks, and fuel cells. The policy is structured to attract large-scale investment, foster technological self-reliance, and position India as a global manufacturing and export hub for Green Hydrogen technology by 2030. Applications for the scheme are set to open in April 2026.
Implications for Indian Import-Export Professionals
These developments are not just headlines; they are strategic inflection points. Here’s a breakdown of the direct implications for your business:
- EU's CBAM Expansion – The Green Compliance Imperative: For our textile, garment, and chemical exporters, this is a call to action. The era of treating sustainability as a CSR activity is over; it is now a market access requirement. Businesses must immediately invest in carbon accounting systems to accurately measure their product carbon footprint (PCF). This is a compliance burden, but also an opportunity. Exporters who can demonstrate a lower carbon footprint through renewable energy usage, efficient processes, and sustainable sourcing will gain a significant competitive advantage in the EU market. Expect a rise in demand for 'green' certifications and supply chain transparency audits.
- US Tech Tariffs – A Double-Edged Sword: For importers relying on Chinese-made advanced components for their manufacturing lines (e.g., in electronics or EV assembly), this signals an urgent need for supply chain diversification. Sourcing from China will become more expensive and riskier. However, this is a massive opportunity for Indian manufacturers. The 'China Plus One' strategy gets a powerful new impetus. Indian firms capable of manufacturing these targeted components can position themselves as a viable, stable alternative for both the US market and for global companies looking to de-risk their supply chains.
- Green Hydrogen PLI – Seeding a Future Export Champion: This is a forward-looking policy that creates a new high-value industrial sector. For businesses in engineering, precision manufacturing, and renewable energy, this is a ground-floor opportunity. It will create a domestic demand pull for capital goods and specialized raw materials. For the long-term exporter, the vision is clear: build capacity now to serve the domestic market, and by the end of the decade, be ready to export high-value, Indian-made electrolysers and fuel cells to the world as global green hydrogen adoption accelerates.
- Increased Logistics and Compliance Overheads: Collectively, these changes mean a higher administrative load. Exporters to the EU will need dedicated teams for carbon reporting. Importers dealing with US-bound or US-sourced tech will need to navigate complex tariff codes and rules of origin. This reinforces the need for robust digital systems, knowledgeable customs house agents (CHAs), and strategic legal & trade advisors to ensure seamless and compliant operations.
Conclusion: The Proactive Advantage
The global trade environment of 2026 is one defined by strategic friction and targeted industrial policy. The themes of sustainability, supply chain security, and technological self-reliance are no longer just talking points—they are the pillars of the new trade order. Indian import-export professionals cannot afford to be reactive. The key to not just surviving but thriving is proactive adaptation. This means investing in greening your supply chain for the European market, exploring diversification and manufacturing opportunities created by US-China tensions, and aligning with India's domestic manufacturing ambitions. The landscape is challenging, but for the strategic Indian enterprise, it is rich with potential. Your ability to anticipate, adapt, and act will determine your success in this new era.
Source: Original