Dear Friends,

The global trade landscape in 2025–26 is marked by cautious optimism, as reflected in recent reports from leading international institutions. The International Monetary Fund (IMF) projects global growth at 3.2% in 2026, with trade expected to expand by 3.4%, supported by resilient services and digital flows (IMF World Economic Outlook, January 2026). The World Bank’s Global Economic Prospects (January 2026) highlights that South Asia, led by India, remains a bright spot, with regional growth estimated at 5.8%, bolstered by public investment and domestic consumption.

According to the World Trade Organization (WTO) Trade Outlook (December 2025), global merchandise trade is forecast to grow by 3.9% in 2026, while commercial services trade is set to expand by 5.2%, driven by ICT, business services, and tourism. The World Customs Organization (WCO) further stresses the importance of digital and green trade facilitation—a priority aligned with India’s own trade modernization efforts.

Domestically, India’s merchandise exports reached US$ 320.41 billion during April–December 2025, a growth of 2.4% year-on-year (Department of Commerce, GoI). Electronics exports surged by 35%, highlighting India’s growing prowess in technology manufacturing.

At EPCES, we continue to advocate for structural reforms to enhance the competitiveness of SEZs and EOUs.

To this effect, we had a noteworthy meeting with the Hon’ Finance Minister, Mrs Nirmala Sitharaman, to discuss the issues and concerns of all our members during our ‘Pre-Budget meeting of Hon’ble FM’ held on 18th November 2025. We have submitted proposals to allow Payment for supply of services from SEZs to DTA in INR, relaxations in conditions of utilization of amount credited to SEZ Reinvestment Reserve Account under Sec 10AA, double taxation issues in case of warehousing services, double payment of import duties in case of SEZ to DTA supplies, and requests for exemption of other duties. We have received positive response from the Hon’ Finance Minister and are confident that these proposals would be soon approved by the respective departments, which will further improve our ease of doing business.

Likewise, the stakeholder consultation chaired by Commerce Secretary Shri Rajesh Agrawal in Chennai (November 2025) reaffirmed the government’s commitment to addressing these concerns through data-driven policy-making.

As global trade increasingly shifts toward sustainability, digitalization, and regionalization, Indian exporters must leverage institutional support, embrace innovation, and focus on quality and compliance. EPCES remains your dedicated partner in navigating this complex environment through sustained advocacy, issue resolution, and capacity-building initiatives. In order to achieve these goals, EPCES is planning to organize an International Conference in collaboration with the World Free Zones Organization.

Together, let us strengthen India’s export resilience and global footprint.