By Sanskriti Global Exports by Himanshu Gupta

Navigating Headwinds and Seizing Tailwinds: India's Trade Landscape on October 26, 2025

Introduction

Good morning, and welcome to your essential trade briefing. In the dynamic world of international commerce, staying ahead requires more than just watching shipments; it demands a keen understanding of the macroeconomic, policy, and geopolitical currents shaping our markets. Today, on October 26, 2025, the landscape for Indian import-export professionals is a complex tapestry of challenge and opportunity. A volatile Rupee is forcing a re-evaluation of financial strategies, while a landmark policy announcement from the DGFT promises to catapult a high-potential sector onto the global stage. Simultaneously, regulatory shifts in Europe and commodity price shocks are creating new operational hurdles that demand immediate attention. This analysis will dissect these key developments, providing the strategic insights you need to navigate the coming weeks and months with confidence.

Today's Factual Summary: The Key Developments

This morning's trade news is dominated by four critical stories that directly impact Indian businesses operating internationally. Here is a factual breakdown of what you need to know.

1. Rupee Weakens Against Dollar on Global Cues

The Indian Rupee (INR) opened weaker against the US Dollar (USD), trading at approximately ₹84.55 in early sessions. This dip is largely attributed to hawkish commentary from the US Federal Reserve indicating a 'higher-for-longer' interest rate stance, which has strengthened the dollar globally. While the Reserve Bank of India (RBI) is believed to be intervening to curb excessive volatility, the short-term pressure remains. The Rupee has, however, shown relative stability against other major currencies like the Euro (EUR) and the British Pound (GBP), making this a dollar-centric issue for now.

2. DGFT Announces Major PLI 2.0 Scheme for Medical Technology (MedTech) Exports

In a significant policy move, the Directorate General of Foreign Trade (DGFT), in collaboration with the Ministry of Commerce and Industry, has officially unveiled the Production Linked Incentive (PLI) 2.0 scheme specifically targeted at boosting the export of high-value Indian-made medical technology. The scheme aims to incentivise the domestic manufacturing and export of sophisticated medical devices, including diagnostic imaging equipment (MRI, CT scanners), high-end surgical robotics, and critical care equipment. Eligible manufacturers will receive incentives ranging from 4% to 7% on their incremental export sales over the base year of 2024-25. The policy is designed to reduce India's import dependency on MedTech and establish the country as a global manufacturing hub for medical devices.

3. EU Expands CBAM Reporting Framework to New Sectors

Exporters to the European Union are facing new compliance requirements. The EU has officially expanded the list of products falling under the transitional phase reporting requirements for its Carbon Border Adjustment Mechanism (CBAM). As of today, certain categories of finished textiles and high-grade ceramics have been added to the list, which already includes steel, aluminium, cement, and fertilizers. This means Indian exporters in these newly added sectors must now meticulously track and report the embedded carbon emissions in their products destined for the EU. While financial levies are not yet applicable, failure to comply with the quarterly reporting standards can result in penalties and significant logistical delays at EU ports.

4. Global Copper Prices Surge on Supply Chain Disruptions

A major supply-side shock has hit the industrial metals market. Prices for copper on the London Metal Exchange (LME) have surged by over 6% in the last 48 hours. This spike is being driven by reports of prolonged labour strikes at key mines in Chile, the world's largest copper producer. For India, a net importer of copper, this has immediate repercussions. The price surge will directly increase the input costs for a wide range of industries, including electrical machinery, electronics manufacturing, construction, and the burgeoning electric vehicle (EV) sector.

Implications for Indian Import-Export Professionals

Understanding the news is one thing; translating it into actionable business strategy is another. Here are the direct implications of today's developments for your operations.

• On Rupee Volatility:
  • Importers: Your landing costs for dollar-denominated goods and raw materials have just increased. It is critical to immediately review your hedging strategy. Consider locking in forward contracts for your upcoming payables to protect your margins from further depreciation.
  • Exporters: A weaker Rupee provides a competitive advantage. Your dollar-invoiced exports are now fetching more rupees, potentially boosting your profitability. This could be an opportune moment to offer slightly more competitive pricing to capture new market share without sacrificing your margin.
• On the MedTech PLI 2.0 Scheme:
  • Opportunity Knocks: For manufacturers in the medical device sector, this is a clarion call. The scheme provides a direct, tangible financial incentive to scale up production and aggressively pursue export markets. Your business should immediately begin evaluating the eligibility criteria and preparing the necessary documentation to apply.
  • Ecosystem Growth: Even if you are not a direct manufacturer, this policy will spur growth across the entire MedTech supply chain. Logistics providers, component suppliers, and compliance consultants in this space should anticipate a significant increase in business.
• On the EU's Expanded CBAM Rules:
  • Urgent Compliance Action: If you export textiles or ceramics to the EU, this is your top priority. You must immediately establish a robust system for calculating and documenting the embedded carbon emissions in your products. This is no longer optional.
  • Invest in Green Tech: In the long term, CBAM incentivises a shift to greener manufacturing processes. Businesses that invest in sustainable energy and resource-efficient production will have a significant competitive advantage in the EU market as CBAM moves from reporting to financial levying.
• On Surging Copper Prices:
  • Input Cost Management: Manufacturers in electronics, wiring, and EV components must brace for higher input costs. Review your inventory levels and consider securing stock if you anticipate further price rises. Open a dialogue with your domestic customers about price revisions, citing the global commodity market shift.
  • Import Planning: If you are a large-scale importer of copper, now is the time to explore diverse sourcing options and negotiate longer-term contracts to buffer against spot-market volatility.

Conclusion

Today’s roundup paints a clear picture of the modern trade environment: it is a constant negotiation between policy-driven opportunities and market-driven pressures. The government's strategic push in MedTech offers a promising pathway for high-value growth, a testament to the proactive industrial policy shaping India's future. However, external factors like currency fluctuations, international regulations like CBAM, and volatile commodity markets serve as a stark reminder that resilience and agility are paramount. The most successful Indian traders will be those who can deftly hedge against the risks while strategically positioning themselves to capitalize on the incredible opportunities being created. Stay informed, stay agile, and plan ahead.

Source: Original