Dear Members,

Happy New Financial Year!!!

International Trade has never been short of shocks. As if crises like Covid-19 during March 2020 to May 2021, ongoing Russia-Ukraine hostilities since 24.2.2022, ongoing Hamas-Israel Gaza war since 7.10.2023 and Houthis attacks on vessels in the Red Sea during October 2023 to March 2024 were not enough, the high Reciprocal Tariffs announced by the US President on 2.4.2025 on the US imports from various trading countries have now completely disrupted international trade. As per WTO, the escalating trade tensions between the United States and China pose a significant risk of a sharp contraction in bilateral trade. Their preliminary projections suggest that merchandise trade between these two economies could decrease by as much as 80%. This tit-for-tat approach between the world’s two largest economies — whose bilateral trade accounts for roughly 3% of global trade — carries wider implications that could severely damage the global economic outlook. A division of the global economy into two blocs could lead to a long-term reduction in global real GDP by nearly 7%.

As per UNCTAD, global trade hit record US$ 33 trillion in 2024, expanding 3.7% ($1.2 trillion). Services drove growth, rising 9% for the year and adding $700 billion – nearly 60% of the total growth. Trade in goods grew 2%, contributing $500 billion. China and India outperformed global trade averages.

During FY 2024-25, Indian merchandise exports at US$ 437 billion remained at the FY 2023-24 level, while services exports are expected to grow by 12% to US$ 383.5 billion, thus overall exports increasing by 5.5% to US$ 820.9 billion. As regards SEZs, Indian merchandise exports grew by 13.6% to US$ 51 billion during April-Dec 2024.

Union budget 2025 has projected exports as the 4th Engine of growth and has announced initiatives for Export Promotion Mission, BharatTradeNet, Support for integration with Global Supply Chains, National Framework for GCC and Warehousing facility for air cargo. However, the details are still awaited.

Rollout of ICEGATE in SEZs w.e.f. 1.7.2024 has been very difficult for our members. EPCES has strongly take it up with the Department of Commerce and the Department of Revenue/ CBIC. As a result, most of the transactions have been continued on SEZ Online as well except the export and import to/from abroad. Similarly, automation of IGCR on ICEGATE for EOUs wef 25.9.2024 has been problematic and EPCES is in constant touch with CBIC and Commerce Ministry for addressing concerns of the EOU members.

Among our regular articles, you will find information about the status of issues taken by the EPCES with the Government, details of queries answered by our knowledge partner in addition to activities at headquarter and regional levels. We will be happy to hear from you for suggestions for improving the news magazine.

With best wishes,