By Sanskriti Global Exports by Himanshu Gupta
India Trade Pulse: Navigating Policy Shifts, a UK FTA Breakthrough, and Rupee Volatility
Date: November 11, 2025
By: [Your Name], Senior Trade Analyst
Introduction
In the intricate tapestry of global commerce, today has been a particularly vibrant and challenging day for India's import-export community. A confluence of domestic policy shifts, significant international trade negotiation progress, and critical central bank intervention has reshaped the immediate landscape. For businesses navigating the currents of international trade, today’s developments are not just headlines; they are actionable intelligence requiring immediate attention and strategic recalibration. From revised export incentives to new compliance mandates and currency fluctuations, understanding the nuances of these events is paramount for maintaining a competitive edge. This analysis will dissect the day's key events and, more importantly, translate them into strategic implications for your business.
Today's Factual Summary: A Multi-Front Environment
The day's news flow presented a mix of opportunities and pressures, originating from New Delhi, Mumbai, and London. Here is a consolidated summary of the pivotal developments:
1. DGFT Announces Expansion and Rate Rationalisation of RoDTEP Scheme
The Directorate General of Foreign Trade (DGFT), through Notification No. 73/2025, announced a significant expansion of the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme. Effective December 1, 2025, the scheme will now include key sectors previously left out, such as certain chemical products (Chapter 29), pharmaceuticals, and iron & steel articles. Simultaneously, the notification includes a rate rationalisation for existing sectors, with marginal increases for high-labour-intensive industries like leather goods and handicrafts, and a slight reduction for certain electronics components where input credit structures have matured.
2. Major Breakthrough in India-UK FTA Negotiations
Sources within the Commerce Ministry have confirmed a substantial breakthrough in the long-negotiated Free Trade Agreement (FTA) with the United Kingdom. The impasse over 'Rules of Origin' for textiles and automotive components has reportedly been resolved. The agreed-upon framework sets a domestic value-addition threshold of 45% for textiles and a more complex, phased-in approach for auto parts. While the final text is yet to be signed, this development signals that the deal is in its final stages, potentially opening up one of India's largest export markets with preferential tariffs within the next fiscal year.
3. RBI Intervenes as Rupee Breaches 85 Against the US Dollar
Following a week of sustained pressure from rising global oil prices and foreign portfolio outflows, the Indian Rupee breached the psychological mark of 85 to the US Dollar in early morning trade. The Reserve Bank of India (RBI) responded with what market participants described as 'significant and coordinated' intervention, selling dollars through state-owned banks. The move helped the Rupee recover to close at 84.75, but the underlying volatility remains a key concern for traders. The RBI's action underscores its commitment to curbing excessive currency depreciation and its impact on imported inflation.
4. CBIC Mandates Integration with ULIP for E-Way Bill Generation
The Central Board of Indirect Taxes and Customs (CBIC) has issued a circular making it mandatory for all businesses with an annual turnover exceeding ₹50 crores to integrate their ERP systems with the Unified Logistics Interface Platform (ULIP) for generating electronic e-way bills for exports. This mandate, with a compliance deadline of March 31, 2026, is a major step in the government's push towards a fully digitised, transparent, and efficient logistics ecosystem. The goal is to reduce paperwork, minimise transit times, and provide real-time tracking capabilities to all stakeholders.
Implications for Indian Import-Export Professionals
These developments carry direct and immediate consequences. Here are the key takeaways and strategic considerations for your business:
- Re-evaluate Export Costing and Pricing Models: The RoDTEP changes require immediate action. Exporters in newly included sectors (chemicals, steel) must urgently work with their customs brokers and consultants to calculate their new benefits and incorporate them into their pricing for future orders. Conversely, those in sectors with revised rates must adjust their financial models to reflect the new reality to protect their margins.
- UK Market-Entry Strategy Activation: For textile, apparel, and automotive component exporters, the UK FTA breakthrough is a green light to accelerate market-entry and expansion strategies. Begin a preliminary audit of your supply chain to ensure you can meet the 45% value-addition norm. Start re-engaging with potential British buyers, highlighting the impending tariff advantages. This is a first-mover advantage moment.
- Hedge Your Currency Exposure Proactively: The RBI's intervention provides a temporary reprieve, not a permanent solution. The underlying pressure on the Rupee persists. Importers should immediately review their open positions and consider short-to-medium-term hedging strategies (e.g., forward contracts) to lock in costs for raw materials. Exporters should be cautious about offering long-term fixed INR pricing to foreign buyers and consider pricing in foreign currency to benefit from any further depreciation.
- Prioritise Digital Logistics Integration: The ULIP mandate is not just a compliance task; it's a strategic imperative. Do not wait until the deadline. Begin talks with your IT and logistics teams, as well as ERP providers, to plan for seamless API integration. Early adoption will not only ensure compliance but can also yield significant operational efficiencies and a competitive advantage over slower-moving competitors.
- Enhance Supply Chain Competitiveness: While the UK FTA is a positive, remember that global trade is a relative game. Other developments, such as new trade facilitation pacts within ASEAN, mean competitors like Vietnam and Thailand are also improving their logistics efficiency. The ULIP integration should be viewed as part of a broader strategy to enhance your end-to-end supply chain to compete not just on price, but on speed, reliability, and transparency.
Conclusion: The Imperative of Agility
Today's news serves as a potent reminder that the world of Indian import-export is in a constant state of flux. The forces of domestic policy, international diplomacy, and macroeconomic trends are creating an environment where only the most agile and informed businesses will thrive. The opportunities presented by the RoDTEP expansion and the potential UK FTA are immense, but they can only be capitalised upon with meticulous planning. Simultaneously, the challenges of a volatile Rupee and the demand for digital transformation require proactive risk management and investment in technology. The key takeaway for every Indian trade professional is clear: stay informed, be prepared to adapt swiftly, and turn today's complexities into tomorrow's competitive advantages.
Source: Original