By Sanskriti Global Exports by Himanshu Gupta

Navigating the Tides: RoDTEP Expansion, UK FTA Progress, and New EU Headwinds

Date: January 24, 2026

Good morning to our community of Indian import-export professionals. Today’s trade landscape presents a fascinating mix of strategic opportunities and significant new challenges. On one hand, the Ministry of Commerce has delivered a welcome boost by expanding the crucial RoDTEP scheme, while negotiators have achieved a landmark breakthrough in the long-awaited India-UK Free Trade Agreement. On the other, a major market has erected new barriers, with the European Union imposing provisional anti-dumping duties on Indian steel. As your trusted trade advisor and analyst, let’s dissect these developments and understand their immediate and long-term impact on your operations.

Today's Key Trade Developments: A Factual Breakdown

This morning's news cycle was dominated by three critical announcements that will reverberate across various sectors of the Indian economy. Here is a factual summary of what has transpired:

1. DGFT Expands RoDTEP Scheme, Tightens Compliance: In a much-anticipated move, the Directorate General of Foreign Trade (DGFT) issued Notification No. 18/2025-26, expanding the scope of the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme. The expansion brings several high-value-add sectors into the fold, including select pharmaceutical APIs (Active Pharmaceutical Ingredients), specialized chemical products, and certain medical devices. The notification specifies revised rates for these new sectors, ranging from 0.8% to 2.5%. Crucially, the circular also introduces a new digital compliance framework. Effective April 1, 2026, all RoDTEP claims will require an automated, digitally-signed e-BRC (Electronic Bank Realization Certificate) to be linked directly with the shipping bill on the ICEGATE portal, aiming to curb discrepancies and expedite processing.

2. Major Breakthrough in India-UK FTA Negotiations: Sources within the Ministry of Commerce have confirmed that Indian and UK negotiators have reached a “provisional agreement in principle” on the highly contentious chapter concerning Rules of Origin. This breakthrough is considered the most significant step forward in the trade talks in over a year. The agreement reportedly outlines a clear and mutually acceptable framework for determining product origin, including specific value-addition percentages and tariff-shift rules for key sectors like textiles, automotive components, and processed foods. While the final text is yet to be ratified, this development signals that both sides are pushing hard to conclude the comprehensive FTA within the calendar year.

3. European Union Imposes Provisional Anti-Dumping Duties on Indian Steel: In a blow to the Indian metals sector, the European Commission has announced the imposition of provisional anti-dumping duties on certain categories of hot-rolled and cold-rolled steel products originating from India. The duties, which take effect immediately, range from 17.5% to 33.8%, depending on the specific product and producer. The Commission’s preliminary investigation concluded that these products were being sold in the EU market at unfairly low prices, causing material injury to European steel manufacturers. This move follows months of lobbying by European industry bodies and will significantly impact the competitiveness of Indian steel exports to one of its largest markets.

Implications for Indian Import-Export Professionals

These are not just headlines; they are direct signals that demand strategic adjustments to your business. Here is our analysis of what these developments mean for you:

• RoDTEP Expansion - Opportunity Meets Obligation: For exporters in the pharma, chemical, and medical device sectors, this is a direct boost to your bottom line. You must immediately instruct your teams to review the new HSN codes covered and calculate the potential benefits. Action Point: Begin the process of integrating your banking and shipping documentation systems to comply with the new mandatory e-BRC linking requirement. Failure to adapt by the April 1st deadline will result in claim rejection.
• UK FTA Progress - Prepare for a New Gateway: While the FTA is not yet signed, the Rules of Origin breakthrough is your cue to start preparing. This is the time to conduct a thorough review of your supply chain. Action Point: For those exporting to the UK (or planning to), analyze your bill of materials to see if your products will meet the likely value-addition thresholds. This may involve increasing local sourcing or adjusting production processes. Being prepared will give you a first-mover advantage when the tariff benefits kick in.
• Logistics and Sourcing Strategy: The UK FTA news might also influence import decisions. If you source components from the UK, preferential tariffs could lower your input costs, improving the competitiveness of your final exported product. Analyze your import basket now to identify potential gains.
• EU Steel Duties - An Urgent Call for Market Diversification: For steel exporters, the EU market has become significantly more challenging overnight. The immediate impact will be a sharp drop in orders and pressure on margins. Action Point: This is a critical trigger to accelerate your market diversification strategy. Focus your business development efforts on alternative markets in the Middle East, Southeast Asia, and Africa where demand is robust and these specific trade barriers do not exist.
• Collateral Damage and Sectoral Risk: The EU's move is a stark reminder of the growing protectionist sentiment globally. Exporters in other sectors, particularly chemicals and aluminum, should view this as a warning shot. Proactively review your pricing strategies and ensure your documentation is immaculate to defend against any future anti-dumping allegations.

Conclusion: A Day of Strategic Recalibration

Today's roundup perfectly encapsulates the dual reality of modern international trade. While domestic policy and bilateral negotiations are opening new doors of opportunity, the global macroeconomic environment is simultaneously raising new walls. The successful Indian exporter in 2026 will be the one who can walk this tightrope with agility. Seize the benefits offered by schemes like RoDTEP, strategically prepare for the advantages of upcoming FTAs like the one with the UK, and build the resilience to withstand and pivot away from protectionist shocks like the EU steel tariffs. The currents of global trade are ever-shifting; staying informed and agile isn't just a best practice, it's the bedrock of survival and success.

Source: Original