As global trade continues to evolve, India has made strategic changes to its export-import policies to boost competitiveness, sustainability, and global access. These recent developments are especially relevant for exporters dealing in agricultural and handmade products.
1. India–UK Free Trade Agreement Signed
In a significant step forward, the India–UK Free Trade Agreement (FTA) was finalized in May 2025. This historic deal eliminates or reduces tariffs on over 99% of export goods. For exporters like Al-Hyatt International, this means greater opportunities in the UK market for products like organic jaggery, dragon fruits, and green & red chillies.
Benefit:
Lower duties = Better pricing = More competitive in the UK.
2. India–US Trade Deal in Final Stages
India and the US are close to signing a mini trade deal, which aims to reduce trade friction and avoid potential tariff increases. This agreement is expected to include benefits for sectors like agriculture, processed foods, and leather goods, opening better access to the US market.
Impact:
Exporters of leather bags and farm produce can gain tariff relief and higher volume orders.
3. RoDTEP Benefits Extended
The government has restored the RoDTEP scheme for SEZs and EOUs (Export Oriented Units). Exporters are now eligible for tax refunds on duties paid during production and shipping, making Indian goods more price-competitive globally.
Good News for You:
If you export from a registered unit, you can claim duty rebates, boosting your profit margin.
4. Focus on Sustainable Trade & Green Compliance
India is aligning its export framework with the EU’s green trade rules under the Carbon Border Adjustment Mechanism (CBAM). This is especially crucial for exporters of agricultural products and eco-sensitive items.
For exporters like Al-Hyatt:
Using organic, chemical-free produce and sustainable packaging gives a competitive edge in European markets.
What This Means for Exporters
These updates are paving the way for easier, more profitable, and globally compliant exports. As an exporter of multi-commodity products, it’s time to:
- Focus on eco-certified goods
- Leverage RoDTEP refunds
- Target FTA markets like the UK and the US
- Upgrade compliance for the EU’s green trade laws
