By Sanskriti Global Exports by Himanshu Gupta
Trade Winds of Change: Analysing India's Evolving Import-Export Landscape in Late 2025
Good morning, and welcome to your essential briefing. As we approach the close of 2025, the currents of global trade are shifting with unprecedented speed. For Indian import-export professionals, navigating these waters requires more than just a map; it demands a deep understanding of the undercurrents of policy, infrastructure, and international regulation. This week's developments are a case in point, offering a potent mix of domestic tailwinds and international complexities.
From a significant expansion of a key export incentive scheme to the landmark operationalisation of a critical infrastructure artery and new clarity on looming European green tariffs, the landscape is being actively reshaped. These are not minor tremors but foundational shifts that will define opportunities and challenges for the coming year. Let’s dissect the key developments and analyse what they mean for your business on the ground.
Factual Summary: The Week's Key Developments
This week's roundup is dominated by three major announcements and a significant market trend that together paint a comprehensive picture of India's trade trajectory.
First, in a major boost for exporters, the Ministry of Commerce and Industry, through the Directorate General of Foreign Trade (DGFT), announced a significant expansion of the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme. Effective January 1, 2026, the scheme will now include high-value-add sectors that were previously excluded, most notably electronics assembly (including specific semiconductor components) and specialty chemicals. The revised rates for these sectors are reported to be in the range of 1.5% to 2.8%, a move designed to enhance the price competitiveness of Indian goods and further fuel the 'Make in India for the world' initiative, aligning export incentives more closely with the Production Linked Incentive (PLI) schemes.
Second, on the domestic logistics front, the Dedicated Freight Corridor Corporation of India (DFCCIL) declared the full, uninterrupted operationalisation of the Western Dedicated Freight Corridor (WDFC). Stretching from Dadri in Uttar Pradesh to the Jawaharlal Nehru Port (JNPT) in Mumbai, the corridor is now handling double-stack container trains at an average speed of 75 km/h, a threefold increase over the congested mixed-traffic routes. This milestone marks the culmination of one of India's most ambitious infrastructure projects, promising to decongest supply chains and slash transit times between the northern hinterland and the country's busiest western ports.
Third, addressing a major point of concern for exporters to Europe, the government released a comprehensive set of compliance guidelines and a digital reporting framework for the EU's Carbon Border Adjustment Mechanism (CBAM). With the definitive phase of CBAM looming in 2026, these guidelines provide a standardised methodology for Indian companies, particularly in the steel, aluminium, and cement sectors, to calculate and report embedded carbon emissions. The framework, which will integrate with the ICEGATE portal, aims to streamline data submission to EU authorities and support Indian firms in their green transition.
Finally, a new report from the Federation of Indian Export Organisations (FIEO) highlights a sustained 20% year-on-year increase in sourcing inquiries from North American and EU-based firms for engineering goods, textiles, and auto components. The report attributes this surge directly to the continued maturation of the 'China Plus One' global supply chain diversification strategy, with India emerging as a primary beneficiary.
Implications for Indian Import-Export Professionals
These developments are not merely headlines; they are actionable intelligence that should be factored into your strategic planning for 2026. Here are the key implications:
- Enhanced Competitiveness for High-Tech Exports: The RoDTEP expansion is a direct financial benefit. For exporters in electronics and specialty chemicals, this translates to improved margins or the ability to price goods more aggressively in competitive international markets. This is a clear signal to double down on investments in these PLI-supported sectors, as the government is now creating a robust, end-to-end policy support system from manufacturing to export.
- A Paradigm Shift in Logistics Efficiency: The full commissioning of the WDFC is a game-changer. For importers and exporters based in the NCR, Punjab, Haryana, Rajasthan, and Gujarat, this means significantly reduced transit times, lower logistics costs, and vastly improved predictability. Your supply chain models must be updated. Re-evaluate your freight forwarder agreements and explore new inland container depot (ICD) options that can now offer faster and more reliable rail connections to JNPT and Mundra. This infrastructural upgrade directly attacks India's historical disadvantage of high logistics costs.
- Navigating Green Trade with a Clearer Roadmap: The new CBAM guidelines move the conversation from anxiety to action. While the compliance burden remains, the government's framework provides much-needed clarity. Proactive firms should immediately begin aligning their internal carbon accounting with these national standards. This is no longer just an ESG issue; it is a market access requirement. Companies that master this compliance early will have a distinct competitive advantage in the EU market over regional rivals who are slower to adapt.
- Capitalising on the 'India Sourcing' Wave: The FIEO report confirms what many have been feeling on the ground. The 'China Plus One' strategy is no longer a buzzword but a tangible source of business. This necessitates a strategic response. Exporters must invest in capacity, quality control, and international marketing to convert these inquiries into long-term contracts. For importers, this trend may mean increased competition for domestic manufacturing capacity and raw materials, requiring more robust and long-term supplier relationships.
- An Urgent Need for Strategic Re-evaluation: Taken together, these events demand a holistic review of your business strategy. Are your pricing models updated to reflect the new RoDTEP benefits? Is your logistics network optimised for the WDFC? Is your team prepared for CBAM reporting? Is your production capacity ready for a potential surge in demand from Western buyers? Complacency is not an option; the businesses that thrive in 2026 will be those that adapt to these new realities today.
Conclusion: A Confluence of Opportunity and Responsibility
The landscape at the end of 2025 is one of cautious optimism. The Indian government is providing powerful enablers through targeted incentives and transformative infrastructure. Simultaneously, global market forces are creating a generational opportunity for Indian exporters to capture a larger share of world trade. However, these opportunities are intertwined with the growing responsibility of global compliance, particularly on the environmental front. The path forward is clear: leverage domestic strengths, embrace global standards, and plan with agility. The coming year promises to be a pivotal one for Indian trade, and the groundwork for success must be laid now.
Source: Original