By Sanskriti Global Exports by Himanshu Gupta

Navigating the Shifting Tides: Key Trade Developments for Indian Businesses – November 28, 2025

Good morning, trade professionals. As we close out the week, the global trade landscape presents a familiar mix of significant breakthroughs, strategic policy shifts, and market headwinds. Today’s roundup is particularly noteworthy, marked by a landmark development in our trade relationship with the United Kingdom and tangible progress on a critical infrastructure project. However, volatility in key commodity markets serves as a stark reminder of the need for agility and strategic foresight. For the Indian importer and exporter, today’s news is not just information; it is a roadmap for the coming months. Let's dissect the key developments and their direct implications for your business.

Factual Summary of Key Global Trade News

Today's headlines are dominated by five key events that will ripple across the Indian trade ecosystem. Here is a consolidated summary of the facts as we know them.

1. India-UK FTA: 'Agreement in Principle' Reached

Sources deep within the Ministry of Commerce and Industry have confirmed that negotiators have reached an “agreement in principle” on the much-anticipated India-UK Free Trade Agreement. After several protracted rounds, breakthroughs have been achieved on contentious chapters, including Rules of Origin, Intellectual Property Rights, and, crucially, a framework for services trade. While the final text is yet to be legalized and signed—a process expected to conclude in Q1 2026—this development marks the most significant progress to date. The agreement reportedly offers substantial tariff reductions for Indian textiles, automotive components, and pharmaceuticals, while India has conceded ground on certain high-end machinery and Scotch whisky imports.

2. IMEC Corridor Sees First Major Infrastructure Push

The India-Middle East-Europe Economic Corridor (IMEC) has moved from blueprint to reality. A consortium led by major Indian and UAE-based logistics firms has announced a $2 billion investment to upgrade port infrastructure at Mundra and develop a dedicated digital trade lane connecting it to Jebel Ali in the UAE. This initiative, part of IMEC's first phase, aims to slash transit times by up to 30% and create a more resilient alternative to traditional East-West shipping routes.

3. New PLI Scheme Announced for Green Hydrogen Components

In a move to bolster its green energy ambitions and capture a slice of the future energy market, the Government of India has announced a new Production-Linked Incentive (PLI) scheme. This one is targeted specifically at the manufacturing of critical green hydrogen components, such as electrolyzers, fuel cells, and storage solutions. The scheme aims to attract global manufacturers and foster a domestic ecosystem, positioning India as a key export hub for green energy technology.

4. DGFT Mandates Digital Certificates of Origin for MSME Exports

The Directorate General of Foreign Trade (DGFT) has issued a notification mandating the use of its digital Common Digital Platform for the issuance of all Certificates of Origin (CoO) for MSME exporters, effective January 1, 2026. This move is part of a broader push towards paperless trade, designed to reduce compliance costs, expedite customs clearance, and minimize fraudulent practices.

5. Global Steel Prices Correct Sharply

Global steel markets are facing significant pressure. Benchmark hot-rolled coil (HRC) prices have fallen by nearly 15% over the past month, driven by slowing manufacturing activity in Europe and weaker-than-expected construction demand from China. This sharp correction is creating considerable headwinds for major steel-exporting nations, including India.

Implications for Indian Import-Export Professionals

Understanding these developments is one thing; translating them into strategy is another. Here are the immediate and long-term implications for your business:

• On the India-UK FTA Breakthrough:
  • Proactive Planning is Key: While the deal is not yet signed, now is the time for exporters to act. Identify your products by HS code and begin studying the potential tariff advantages. Sectors like textiles, leather goods, gems and jewellery, and auto components should prepare to scale up production and marketing efforts for the UK market.
  • New Sourcing Opportunities: Importers should evaluate sourcing high-tech industrial machinery, advanced engineering goods, and specific financial services from the UK, which are likely to become more cost-effective.
  • Compliance is Crucial: Familiarize yourself with the likely Rules of Origin criteria. To benefit from the FTA, your products will need to meet specific value-addition or processing norms. Start reviewing your supply chain now to ensure compliance.
• On the IMEC Corridor Progress:
  • Logistics Cost & Time Savings: For businesses trading with the Middle East and Europe, this is a game-changer. The promise of reduced transit times and more predictable logistics can significantly improve your competitiveness, especially for time-sensitive or perishable goods. Engage with your logistics partners to explore new routing options as they become available.
  • Gateway to New Markets: The IMEC corridor isn't just a route to Europe; it enhances connectivity with the entire Gulf region. Businesses should re-evaluate the GCC market as a primary export destination, not just a transshipment hub.
• On the Green Hydrogen PLI Scheme:
  • First-Mover Advantage for Manufacturers: If you are in the engineering or manufacturing sector, this PLI scheme presents a golden opportunity to diversify into a high-growth, sunrise industry with significant export potential.
  • Import Substitution & Local Sourcing: Importers of these components will soon find a robust domestic supplier base. While this may increase local competition, it also de-risks supply chains currently dependent on a few countries.
• On DGFT's Digitalization Drive:
  • Immediate Action Required for MSMEs: MSME exporters must immediately begin transitioning to the Common Digital Platform for CoOs to avoid any disruptions come January. Invest in training your teams on the new system.
  • Long-Term Efficiency Gain: While there may be a short-term learning curve, this move will ultimately lead to faster processing times, lower courier costs, and greater transparency, enhancing the ease of doing business.
• On the Steel Price Correction:
  • Challenge for Exporters: Steel exporters will face intense margin pressure. The strategic imperative is to focus on value-added steel products rather than raw commodities and to explore new, non-traditional markets in Africa and Latin America to diversify away from slowing economies.
  • Opportunity for Importers: Conversely, domestic manufacturers who use steel as a raw material (e.g., auto, construction, consumer durables) will benefit from lower input costs. This is an opportune moment to negotiate better prices with suppliers or even lock in rates for future projects.

Conclusion: A Call for Strategic Agility

The developments of November 28, 2025, paint a clear picture: the world of trade does not stand still. The structural opportunities presented by the UK FTA and the IMEC corridor are immense, promising long-term growth for those who prepare. Simultaneously, policy shifts like the Green Hydrogen PLI and DGFT's digitalization are reshaping the domestic landscape. Yet, market realities like the downturn in steel prices remind us that we must always be prepared for volatility. The successful Indian trade professional in 2026 will not be the one who simply reacts, but the one who anticipates, adapts, and acts with strategic agility. Your homework for the weekend is clear: review your market exposure, supply chain dependencies, and compliance frameworks in light of these powerful new currents.

Source: Original