Dear Friends,

Despite a choppy global market, our members kept finding ways to win. This quarter’s progress is proof of that spirit. This period has tested the resilience of global trade systems and India’s export ecosystem has stood up with remarkable adaptability.

Indian merchandise exports grew by 3% to US$ 220.12 billion in H1 of FY2025–26, while services exports rose by 6.1% to US$ 193.18 billion, taking total exports to US$ 413.3 billion. Special Economic Zones recorded healthy growth too — SEZ merchandise exports rose 9% to US$ 69 billion in FY2024–25. These numbers show that while headwinds persist, our exporters are sustaining volumes and seizing opportunities.

According to the WTO’s October 2025 Global Trade Outlook, global merchandise trade volume grew by 4.9% in the first half of 2025, driven largely by robust demand for AI-related goods. However, the projection for 2026 has been revised downward to just 0.5%, reflecting the lingering impact of tariffs, geopolitical uncertainties, and shifting supply chains. The World Bank, too, has highlighted the fragility of global trade recovery amidst monetary tightening and regional conflicts. In this backdrop, EPCES’s advocacy and interventions have become even more critical to protect and promote India's SEZ and EOU ecosystem.

I am pleased to report that our sustained engagement with policymakers has produced results that matter to our members. The RoDTEP scheme has been extended to March 31, 2026, and the APR filing deadline for SEZ units has been aligned with statutory timelines and moved to December 31, 2025. We have also secured key operational relief — EOUs no longer need to file manual returns (now automated via ICEGATE/IGCR) and SOFTEX filings for inter-SEZ service transfers have been waived.

We continue to press for important reforms such as permitting SEZ-to-DTA sales on a duty-foregone basis — a measure that can boost domestic sourcing and attract global manufacturers. Rising tariff barriers in markets like the U.S. remain a concern; to protect market access, we have proposed a temporary support mechanism including government co-sharing of tariff costs while alternate markets are developed. We are also pursuing recognition of MOOWR (bonded warehouse) supplies in SEZ net foreign exchange calculations so export accounting reflects modern trade realities.

A practical outcome of our interventions concerns a developer request handled by EPCES. We took up the case of M/s Accenture Solutions Pvt. Ltd (developer: M/s Gigaplex Estate Pvt. Ltd) seeking conversion of an area demarcated as Non-Processing Area (NPA) back to Processing Area (PA). The Ministry has now clarified that demarcation between NPA and PA falls under Rule 11 and is within the authority of the Development Commissioner, subject to the condition that the applicant developer has no claim for any duty refund. Developers may therefore seek the Development Commissioner’s approval in such cases — a welcome, clarifying step for many regional projects.

In October, we had the honour of bidding farewell to Shri Sunil Barthwal and welcoming Shri Rajesh Agrawal as the new Commerce Secretary. We look forward to working closely with Shri Agrawal to push forward pending reforms. I am also pleased to report that elections under the amended Articles of Association were successfully completed — congratulations to Shri Sunil Rallan on his election as Vice-Chairperson and to all newly elected CGC and RGC members.

Our regional offices play a major role in the functioning of the council. Under the stewardship of our DG, regional offices have been highly active — holding regular interactions with members, running workshops and knowledge sessions, and resolving field issues promptly. We will shortly begin upgrading the Regional Governing Council offices and strengthening them with the necessary resources to serve you better.

Friends, the road ahead will require agility and alignment. Multilateral institutions project continued uncertainty through 2026, especially for developing economies. But with proactive policymaking, collaborative leadership, and an innovation-led export strategy, SEZs and EOUs can remain strong pillars of India’s global trade. I welcome your feedback and urge you to stay engaged as we take EPCES into the next chapter of growth.