My Dear Colleagues,

Wishing you a very Happy and Prosperous New Financial Year!

The beginning of 2025 has brought with it a mixed bag of global trade developments. While UNCTAD has confirmed that global trade reached a historic high of US$ 33 trillion in 2024, the trade environment remains turbulent. Recent announcements of high reciprocal tariffs by both the United States and China have cast a shadow over international trade flows, particularly between major economies. The IMF’s latest World Economic Outlook (April 2025) warns that escalating trade tensions could shave off 0.5% from global GDP growth this year, with supply chain disruptions posing additional risks.

In light of these developments, on April 11, 2025, the Hon’ Commerce Minister, Shri Piyush Goyal held an expert committee meeting in which EPCES had participated. The CIM reassured that the Ministry will extend its full support to the exporters/ industry and remarked that current crisis is a financial emergency in the US and not India. EPCES conveyed that the US Foreign Trade Zones are ready to collaborate and work with the Indian counterparts in furthering trade and business opportunities for both the countries. EPCES pointed out that the US FTZs are already practicing sales to DTA on a duty foregone basis that need to be replicated by India, which was taken well by the government. Further, the Department of Commerce held an inter-ministerial consultation on April 23, 2025, chaired by Shri L. Satya Srinivas, Special Secretary, to deliberate on mitigating the impact of the US reciprocal tariffs on SEZs and EOUs. On behalf of EPCES, we presented a detailed set of recommendations to safeguard our members’ interests. Key issues highlighted included the need for permitting SEZ to DTA supplies on a duty foregone basis (as allowed in US FTZs), streamlining job work and reverse job work procedures, enabling INR payment for services to DTA, and addressing the challenges caused by ICEGATE’s implementation in SEZs and EOUs. We also raised concerns regarding delays in RoDTEP benefits and recommended its extension till September 2025. The Department assured that many of these issues will be taken up on priority in consultation with CBIC and other concerned departments.

On the economic front, the RBI’s Monetary Policy (February 2025) maintained the repo rate at 6.5%, aiming to support growth amid stable inflation (~4.9% CPI). The OECD’s Global Trade Forecast (March 2025) projects a modest 2.7% growth in trade volumes for the year, with Asia-Pacific leading the recovery. Domestically, India’s Manufacturing PMI (March 2025) stood at a strong 58.1, indicating steady expansion in production and export orders. Meanwhile, the PLI scheme continues to draw robust investments—US$ 28 billion so far—particularly in Electronics and Pharmaceuticals, fuelling export-oriented manufacturing.

Despite these global headwinds, India’s export sector continues to demonstrate resilience. According to Ministry of Commerce and Industry’s estimates, the country’s total exports for FY 2024–25 reached US$ 820.9 billion, marking a 5.5% growth over the previous year. Notably, SEZs have been standout performers, registering a 13.6% rise in merchandise exports (April–December 2024) at US$ 51 billion, reinforcing their role as key growth drivers.

We are also pleased to share a major development for SEZ and EOU units in the garments and made-ups sector. Pursuant to consistent representations made by EPCES, the Government has included SEZ and EOU exports under the scope of the newly constituted Committee to revise RoSCTL ceiling rates. This inclusion will help ensure fair and adequate benefits for our members in this segment.

As we navigate these evolving trade dynamics, EPCES remains committed to advocating for our members and helping you leverage emerging policy opportunities. We welcome your feedback and suggestions to make this magazine more useful and informative. Let us work together for a strong and export-driven future.

Warm regards,