1. India–US Trade Dialogue & Tariff Dynamics
- Interim Trade Discussions Near Conclusion
In the run-up to the July 9 deadline set by the U.S., New Delhi and Washington have intensified trade talks. The focus lies on revising reciprocal tariffs, especially the threatened 26% duty on Indian exports - Strategic Stand on Agriculture and Dairy
India maintains firm positions on protecting its agricultural and dairy sectors, while urging the U.S. to offer concessions in manufacturing and auto parts. - Potential Export Wins
A successful interim deal would immediately benefit labour-intensive exports like leather bags, textiles, and food products. New concessions could also facilitate market entry for agro-products such as organic jaggery and green chillies.
2. India–UK Free Trade Agreement Ratified
India and the UK formally signed a groundbreaking Free Trade Agreement in May 2025, covering 99% of tariff lines, particularly benefiting sectors like agriculture, artisanal goods, and leather.
Key Benefits for Exporters:
- Zero-duty access for organic agro-products, leather goods, and health foods.
- Enhanced flow of Indian staples like dragon fruit and premium jaggery into UK markets.
3. Aligning with EU Green Standards
As the EU ramps up its Carbon Border Adjustment Mechanism (CBAM) and green trade regulations, India is proactively adjusting its export frameworks. Industries exporting goods like coffee, scrap, organic products, and packaging are now required to meet higher sustainability benchmarks.
Opportunity:
Indian exporters positioning themselves as eco-conscious—through certifications and green production—will gain stronger EU market acceptance.
4. RoDTEP Benefits Extended to SEZ, EOU & AA Units
The Indian government reintroduced the RoDTEP scheme from June 1, 2025, extending it to include Special Economic Zones (SEZs), Export Oriented Units (EOUs), and Advance Authorisation holders.
- Substantial Government Support:
Over ₹18,233 crores (~$2.2 billion) allocated for FY 2025–26, covering 10,780 tariff lines—including agro, leather, and processed foods. - Why It Matters:
Exporters, including those of Organic Jaggery, Talbina Powder, Leather Bags, and Chillies, can now benefit from tax refunds, improving pricing efficiency and competitiveness.
5. Manufacturing Momentum & Export Order Surge
India’s H1 2025 Manufacturing PMI rose to a 14-month high, driven by strong export demand. Major export sectors—electronics, pharmaceuticals, chemicals, and processed foods—reflect steady growth in May‑June 2025
- Export Figures:
May exports stood at $38.73 billion (+0.6% YoY), with imports easing to $60.61 billion, narrowing the trade deficit to $21.88 billion
Conclusion:
Exporters are urged to scale operations, optimise production planning, and prioritise timely delivery.
6. Import Curbs on Metallurgical Coke
India has extended its import restrictions on low-ash metallurgical coke (critical for steel production), capping imports to 1.4 million tonnes until December 2025. This policy encourages domestic sourcing and shields local producers.
- Takeaway:
Exporters using steel in manufacturing—from food processing machinery to packaging—may experience tighter input supply and higher raw material costs.
7. Minerals & Mining Collaboration
India is preparing for strategic ties in the copper sector, seeking foreign investment in smelters and mining as domestic reserves remain limited.
- Implication:
Importers of copper-dependent sectors might expect long-term supply restructuring.
