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India Trade Analysis: Navigating EU's CBAM Phase 2, Red Sea Pact & DGFT's Digital Push

13 January 2026 by
Himanshu Gupta
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India Trade Analysis: Navigating EU's CBAM Phase 2, Red Sea Pact & DGFT's Digital Push

By Sanskriti Global Exports by Himanshu Gupta

Trade Winds of Change: Deconstructing the Global and Domestic Shifts of January 13, 2026

Introduction

For the discerning Indian trader, today is not just another day on the calendar. It’s a microcosm of the evolving global trade landscape—a confluence of stringent new regulations from our largest trading partners, strategic geopolitical realignments in critical maritime channels, and a significant digital leap forward on the domestic front. The developments of January 13, 2026, demand more than a cursory glance; they require careful analysis and strategic adaptation. From Brussels to the Bab-el-Mandeb strait and back to New Delhi, the tectonic plates of international commerce are shifting. This analysis will dissect today's key news items and, more importantly, translate them into actionable intelligence for your import-export operations.

Factual Summary: Today's Key Developments

Our daily roundup reveals a trio of announcements that will have far-reaching consequences for Indian businesses engaged in global trade.

1. European Union Finalises 'CBAM Phase 2' Regulations
The European Commission has officially released the finalized technical guidelines for Phase 2 of its Carbon Border Adjustment Mechanism (CBAM), set to be enforced from January 1, 2027. This next phase expands the mechanism's scope beyond the initial basket of goods (iron, steel, cement, aluminium, fertilisers, electricity, hydrogen) to include finished products in the textiles, ceramics, and polymers sectors. The most significant addition is the mandatory requirement for a 'Digital Product Passport' (DPP). This DPP will need to accompany consignments, digitally verifying the embedded carbon emissions throughout the product's entire supply chain. Non-compliance will result in steep financial penalties and potential blacklisting from the EU market.

2. 'Trident Shield' Maritime Security Pact for Red Sea Announced
In a major diplomatic breakthrough, India, the UAE, and Saudi Arabia have signed a trilateral maritime security pact named 'Operation Trident Shield'. The agreement establishes a framework for a joint task force to ensure the safe passage of commercial vessels through the Red Sea and the Gulf of Aden. Key features include coordinated naval patrols, a shared real-time intelligence platform to monitor threats, and a streamlined process for providing security escorts to high-value cargo. The pact is aimed at drastically reducing security risks, which in turn is expected to bring down the prohibitively high shipping insurance premiums that have plagued this route for the past two years.

3. DGFT Launches Unified 'Vyapar Sarathi' Digital Portal
Back home, the Directorate General of Foreign Trade (DGFT) has launched its ambitious 'Vyapar Sarathi' portal. This next-generation platform is designed to serve as a single-window interface for all import-export compliance. It integrates services previously scattered across multiple portals like ICEGATE, E-Sanchit, and various Export Promotion Council websites. The portal’s standout feature is an AI-powered 'Compliance Risk Engine' that provides exporters with a real-time risk score for their documentation, helping to preemptively identify potential issues that could cause customs delays. It also aims to digitize the issuance and verification of Certificates of Origin and streamline the RoDTEP claims process.

Implications for Indian Import-Export Professionals

Translating these headlines into on-the-ground business strategy is paramount. Here are the immediate and long-term implications for your operations:

  • EU Market Access is Now a Sustainability Mandate: The expansion of CBAM is a game-changer. For exporters in textiles, ceramics, and plastics, this is an urgent call to action. It’s no longer enough to be price-competitive; you must now be 'green-competitive'. This means investing in carbon accounting systems, conducting thorough supply chain audits to track emissions (Scope 1, 2, and 3), and preparing for the technological demands of the Digital Product Passport. This is not merely a compliance exercise; it's a fundamental requirement for market access. MSMEs, in particular, should seek guidance from industry bodies and government agencies on navigating these complex requirements.
  • Recalibration of Logistics and Freight Costs: The 'Trident Shield' pact is a welcome relief. The enhanced security in the Red Sea corridor should lead to a tangible reduction in 'War Risk' and other insurance premiums. Exporters and importers should immediately open discussions with their freight forwarders and shipping lines to renegotiate contracts, citing this reduced risk profile. This could shave significant percentage points off landing costs, making Indian goods more competitive in Europe and North Africa. It also restores a degree of predictability to transit times via the Suez Canal route.
  • Embrace Digital-First Compliance to Gain an Edge: The 'Vyapar Sarathi' portal is a significant step towards ease of doing business. The immediate implication is the need for operational teams to get trained on this new system. Proactive adoption can translate into a real competitive advantage. Leveraging the AI risk engine can drastically reduce the chances of customs holds and delays, improving cash flow and client satisfaction. For importers, the unified platform can shorten clearance times. This is an opportunity to reduce reliance on manual processes and build more resilient, transparent, and efficient internal compliance workflows.
  • A Strategic Shift in Sourcing and Production: The EU's move will compel many Indian manufacturers to re-evaluate their own suppliers. If you import raw materials (e.g., polymers, dyes for textiles) for products destined for the EU, you will now need carbon data from your suppliers. This will trigger a ripple effect down the domestic supply chain, favouring suppliers who are transparent and have low-carbon processes. This could also spur investment in greener production technologies and renewable energy within Indian manufacturing facilities.

Conclusion

Today’s news paints a clear picture of the future: global trade will be greener, more digital, and strategically interconnected. The challenges, epitomized by the EU's stringent environmental gatekeeping, are significant. They demand immediate investment in technology and sustainability. However, the opportunities are equally compelling. The stabilization of a key maritime route and a powerful domestic digital infrastructure provide Indian businesses with the tools to become more efficient and competitive. The successful Indian import-export professional of 2026 will not be the one who simply reacts to these changes, but the one who anticipates them, adapts proactively, and leverages them as a catalyst for growth and innovation.

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Himanshu Gupta 13 January 2026
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