By Sanskriti Global Exports by Himanshu Gupta

Navigating the Shifting Tides: Key Trade Developments for India on February 23, 2026

Date: February 23, 2026
Author: Your Senior Trade Analyst

Introduction

In the dynamic theatre of global commerce, standing still is akin to moving backward. Today, February 23, 2026, is a testament to this principle, presenting Indian import-export professionals with a complex tapestry of policy shifts, regulatory tightening, market volatility, and infrastructure opportunities. The day's developments, spanning from New Delhi's corridors of power to Brussels' regulatory chambers, demand not just attention but strategic interpretation. As your dedicated trade advisor, this analysis will dissect today's key events, moving beyond the headlines to provide actionable insights that will fortify your business against emerging challenges and position you to seize new opportunities. We will explore a crucial domestic policy adjustment in the renewable energy sector, a significant escalation in the EU's climate-related trade regulations, currency market tremors, and a landmark infrastructural achievement poised to redefine logistics on our eastern seaboard.

Factual Summary of Key Events

Today's import-export landscape has been shaped by four significant, albeit unrelated, events that carry substantial weight for Indian businesses.

1. DGFT Notifies Revised Duties on Solar PV Components: The Directorate General of Foreign Trade (DGFT), in a much-anticipated move, issued a notification adjusting the import duty structure for specific components used in the manufacturing of Solar Photovoltaic (PV) modules. The notification details a calibrated increase in the Basic Customs Duty (BCD) on solar cells and a reduction on certain raw materials like EVA films and backsheets. The stated objective is to further incentivise domestic manufacturing under the Production Linked Incentive (PLI) scheme for high-efficiency solar modules, while ensuring cost-competitiveness for local assemblers by easing the import of essential inputs not yet widely produced in India.

2. EU Releases Stringent Phase-Two Reporting Guidelines for CBAM: The European Commission today published the detailed reporting and verification guidelines for the second phase of its Carbon Border Adjustment Mechanism (CBAM), set to take full effect later this year. These new, more stringent rules will impact Indian exporters in key sectors like steel, aluminium, cement, and fertilisers. The guidelines mandate a more granular level of data on embedded carbon emissions, require third-party verification from EU-accredited auditors, and eliminate certain previously accepted estimation methodologies. This represents a significant increase in the compliance burden for Indian firms looking to maintain their competitiveness in the European market.

3. Rupee Volatility Spikes Amid Global Cues: The Indian Rupee (INR) experienced a volatile session against the US Dollar (USD), fluctuating sharply between 84.70 and 85.45. Market analysts attribute this instability to stronger-than-expected manufacturing data from the United States, which has fuelled speculation about the Federal Reserve's future interest rate trajectory. This heightened volatility directly impacts the landed cost of imports and the realised value of exports, creating uncertainty for traders in pricing and margin calculations.

4. New Kalinga Deep-Water Port Declared Fully Operational: In a major boost to national infrastructure, the Ministry of Ports, Shipping and Waterways announced that the new Kalinga Deep-Water Port in Odisha is now fully operational for commercial container and bulk cargo traffic. The port boasts state-of-the-art automation and a deep draft capable of handling the largest modern vessels. It is strategically positioned to serve as a gateway to Southeast Asia, with projections suggesting it could reduce shipping times to hubs like Singapore and Ho Chi Minh City by up to 20% for cargo originating from India's eastern and central regions.

Implications for Indian Import-Export Professionals

Understanding these facts is the first step; translating them into business strategy is what truly matters. Here are the direct implications for your operations:

• Solar Sector: A Double-Edged Sword. For importers of finished solar cells, the revised DGFT notification signals an immediate increase in procurement costs. It is critical to urgently review sourcing contracts and explore partnerships with emerging domestic cell manufacturers. Conversely, for importers of raw materials like EVA films, this is a positive development that could lower production costs. Domestic module manufacturers stand to benefit most, but must ensure their supply chains are robust enough to handle the shift in sourcing dynamics.
• EU Exporters: The Compliance Clock is Ticking Loudly. The new CBAM guidelines are a non-negotiable reality. If you export steel, aluminium, or cement to the EU, immediate action is required. This means investing in sophisticated carbon accounting systems, initiating the process of engaging EU-accredited verifiers, and potentially re-engineering production processes to lower your carbon footprint. This is no longer a matter of CSR; it is a fundamental cost of market access that will directly impact your pricing and competitiveness against global peers.
• All Traders: Revisit Your Forex Hedging Strategy. Today's rupee volatility is a stark reminder of the financial risks inherent in international trade. Relying on spot rates is a high-stakes gamble. Importers must lock in their costs using forward contracts to protect margins from a depreciating rupee. Exporters should consider similar instruments to hedge their receivables, ensuring that a sudden appreciation of the rupee doesn't erode their hard-earned profits. Consult your financial advisor to review and strengthen your forex risk management policy.
• Eastern Exporters: A New Logistics Gateway Opens. The full operationalisation of the Kalinga Port is a game-changing opportunity, particularly for businesses in Odisha, Jharkhand, Chhattisgarh, and West Bengal. This is the moment to engage your logistics partners and conduct a comparative analysis of shipping via Kalinga versus existing ports like Kolkata or Visakhapatnam. The potential savings in both time and freight costs could provide a significant competitive advantage, especially for time-sensitive cargo destined for ASEAN markets.
• The Overarching Theme: Strategic Agility. Taken together, these developments underscore a crucial theme: the Indian trade environment is being shaped by a confluence of protectionist industrial policy, stringent international environmental standards, and global market forces. Success will belong to those who are agile—businesses that can pivot their sourcing strategies, invest in compliance, manage financial risks proactively, and leverage new infrastructure to their advantage.

Conclusion

The events of February 23, 2026, serve as a microcosm of the modern trade ecosystem. We see the clear push-pull between domestic promotion (solar duties) and international compliance (CBAM), a dynamic that will only intensify. We are reminded that macroeconomic factors like currency fluctuations remain a constant, unpredictable variable requiring disciplined financial management. And finally, we are shown that strategic government investment in infrastructure can unlock tangible competitive benefits for our export community. Navigating these currents requires diligence, foresight, and a willingness to adapt. Stay informed, stay agile, and continue to build the resilient supply chains that will define the future of Indian trade.

Source: Original