My Dear Colleagues

Happy New Year!!!

UN Trade and Development (UNCTAD) projects that global trade is poised to hit an all-time high of nearly $33 trillion in 2024, up $1 trillion from the previous year. This 3.3% annual growth has been driven largely by a 7% rise in trade in services, contributing $500 billion to the overall expansion. Trade in goods has grown at a slower 2% this year, remaining below its 2022 peak. The 2025 trade outlook is clouded by potential US policy shifts, including broader tariffs that could disrupt global value chains and impact key trading partners. Such measures risk triggering retaliation and ripple effects, affecting industries and economies along entire supply chains. Even the mere threat of tariffs creates unpredictability, weakening trade, investment and economic growth.

India’s total exports (Merchandise and Services combined) for December 2024 is estimated at USD 70.67 Billion, registering a positive growth of 0.92 percent vis-à-vis December 2023. India’s total exports during April-December2024 is estimated at USD 602.64 Billion registering a positive growth of 6.03 percent. Total imports during April-December 2024 is estimated at USD 682.15 Billion registering a growth of 6.91 percent.

You will be happy to know that I had the opportunity of participating in the Hon’ble Finance Minister’s pre-budget consultation of the “Trade and Services” group on 26th December 2024 and I raised the issue of delay in SEZ reforms through either long pending DESH Bill or through amendment in SEZ Act. I requested to have some amendments in SEZ Act through Finance Bill itself for SEZ to DTA supply on duty foregone basis and payment in INR for supplies to DTA. We have sent a formal request to Secretary, D/o Economic Affairs in this regard. GCCs are optimistic about our future prospects backed by the return-to-office culture. The proposed amendments simplifying the SEZ Act, coupled with INR payments will certainly open up manifold opportunities within the service industry.

EPCES has been in regular touch with Commerce and Finance Ministries about the difficulties being faced by the members in the rollout of ICEGATE in SEZs w.e.f. 1.7.2024. Thanks to EPCES follow up, it has been decided to continue the facility of filing of documents through SEZ Online till 17.2.2025. EPCES has also taken up with Government for extension of RoDTEP to SEZs and EOUs till 30.9.2025 on the pattern of DTA exporters. It has been extended for SEZs and EOUs till 29.1.2025 on an interim basis.

Let’s hope budget brings some good news for exporting community in general and SEZ and EOU community in particular. We will be happy to hear from you for suggestions for improving this news magazine.

With best wishes,