Dear Members and Readers,

It gives me immense pleasure in presenting Annual Report of EPCES for the year 2023-24 having details of activities undertaken during the year, audit report and the audited accounts, as approved by the Central Governing Council.

Financial Year 2023-24 has been full of challenges for the exporting community. Persistent geopolitical tensions, rising shipping costs, friend-shoring and protective trade policies have significantly impacted global trade. World Merchandise trade volume declined by 1.2% in 2023. The USD Dollar value of world merchandise trade fell 5% in 2023 to US$ 24.01 trillion but this decline was mostly offset by a strong increase in commercial services trade, which rose 9% to US$ 7.54 trillion. The decline in merchandise exports was partly due to falling prices of commodities, such as oil and gas. Meanwhile, commercial services trade was lifted by recovering international travel and surging digitally delivered services. Reflecting global trade, Indian merchandise exports contracted in FY 24 by 3.1% to US$ 436.06 billion, while services exports increased by 4.4% to US$ 339.62 billion, thus overall exports remaining at about the previous year level of US$ 776.68 billion. As regards SEZs, merchandise exports increased by 2% to US$ 63.04 billion, while services exports remained at the same level of US$ 94.3 billion.

EPCES has continued its capacity building and export promotion activities and has kept on pursuing issues concerning SEZs and EOUs with the Government. Thanks to the constant follow-up by EPCES, Government has extended RoDTEP scheme to EOUs and SEZs too. EOUs have started getting RoDTEP benefits w.e.f 11.3.2024 while SEZ units are being covered w.e.f. 1.7.2024 on IT integration of SEZs with ICEGATE. Government has also exempted imports by SEZs and EOUs from the mandatory Quality Control Orders issued by Ministry of Textile, Ministry of Steel, Dept for Promotion of Industry and Internal Trade and D/o Pharmaceuticals and Chemicals. Government has also introduced SEZ Rule 11B for permitting DTA operation from IT/ITES SEZs from the demarcated non-processing area. Hybrid working under SEZ Rule 43A has been extended upto 31.12.2024.

With Hon’ble Shri Narendra Modi assuming the charge of Prime Minister again, policy stability and continuity is expected. EPCES hopes that the long pending reforms in SEZs through amendment in SEZ Act will be carried out by enabling DTA sale on duty foregone principle and payment in INR for DTA supply of services.

We also welcome Shri Srikanth Badiga as the new Chairman on the completion of two-year term by Shri Bhuvnesh Seth, past Chairman. We have requested for certain amendments in AoA vis-à-vis Revised Model AoA issued by the Ministry and the elections for the new Vice Chairman, the CGC and the RGCs will be held as soon as we receive Government approval.

I am sure the members and readers will enjoy reading about the activities of the Council during 2023-24 in this Annual Report.

With best wishes,