For Private Circulation

February 2026

PAGE:

P A G E : Exports Hurt:

2-3

States Flag Facility and
Testing Gaps at Board
of Trade Meeting

4

Profile of
Bulgaria

Editor’s Note
India ends year 2025 with two Free Trade Agreements
On December 18, 2025,
India and Oman officially
signed a Comprehensive
Economic Partnership
Agreement (CEPA).
This landmark deal
provides
Indian
exporters with zero-duty
access to 98% of
Oman’s tariff lines. It is
expected to significantly boost India’s industrial exports and services, particularly
in sectors like petroleum products, textiles, and engineering goods, while opening
a strategic gateway to the wider Gulf region. Experts project that total bilateral
trade could cross $20 billion by 2030, up from the ~$10.6 billion recorded in
2025. In addition, following years of negotiations, India concluded a Free Trade
Agreement (FTA) with New Zealand on December 22, 2025. A major win for
New Delhi was securing zero-duty market access for 100% of Indian goods
while successfully keeping the sensitive domestic dairy sector on the “exclusion
list.” In exchange, New Zealand committed to investing $20 billion into India
over the coming years. While bilateral trade was relatively modest at $2.4 billion
in 2024–25, the FTA is designed as a “force multiplier” for the next five years.
Bilateral trade is officially projected to
Contents:
double by 2030, reaching
approximately $5 billion. SME
• Insight .............................. 2-3
analysts expect an even more
• Country Profile ..................... 4
aggressive trajectory, with targets to
reach 4x the current levels ($8–$10
• Logistics .............................. 5
billion) by 2030, driven by the 100%
• Trade News ...................... 6-7
duty-free access New Zealand granted
• WTO ................................. 8
to Indian goods.
Editor: Suhayl Abidi

Vol. 22 ♦ No. 2

PAGE:

6-7

Trade News

Highlight of the Month
Gujarat unveils Green Hydrogen
Policy 2025 with Focus on
Production, Jobs and Exports

The Gujarat government has
announced the Green Hydrogen Policy
2025, setting out a detailed plan to
turn the state into a major centre for
green hydrogen production and
exports over the next decade. Under
the policy, Gujarat aims to build green
hydrogen production capacity of 3
million metric tons per year by 2035.
This will be supported by 30 gigawatts
of electrolyser capacity and 75
gigawatts of renewable energy
capacity. To meet these targets, the
state is seeking investments of nearly
Rs.5 trillion, or about $55.6 billion,
across the green hydrogen and
renewable energy sectors. A major
feature of the policy is the promotion
of integrated green hydrogen hubs.
These hubs will bring together
hydrogen production, storage,
transport and usage in one area with
shared facilities. Each hub must
produce at least 3 kilo tons of hydrogen
per year, host a minimum of 10
industrial units, and include at least
one hydrogen production plant.
Coastal and port-linked areas have
been given priority to support exports.
Capital support of up to Rs. 350 million
per hub will be provided for a limited
number of projects.
Supporting International Trade through Education, Training and Research.

February 2026 • Vol. 22 • No. 2 • 1

INSIGHT

2

payment. There are also worries that
these could result in orders moving to
its competitors such as Bangladesh,
Vietnam and China.

Exports Hurt: States Flag
Facility and Testing Gaps at
Board of Trade Meeting

Exports dipped in October, but
jumped 19 per cent in November driven
by growth in exports of products that
remain outside the tariff net. Labourintensive goods, however, risk losing

Exporters’ challenges were flagged
in a meeting of the Board of Trade
chaired by Union Commerce and
Industry Minister Piyush Goyal on
November 25. IT’S not just high US
tariffs that are hurting exports. Costlier
raw materials, shortage of testing
facilities to ensure products meet
global quality standards, and lack of
adequate shipping containers are all
leading to loss of competitiveness of
goods exports. BoT is an advisory
body and suggests mea-sures related
to foreign trade policy and procedural
simplifications to boost trade.
The BoT meeting happened in the
backdrop of slowing exports due to the
steep US tariffs of 50 per cent, and
both countries failing to conclude a
trade deal till the fall of 2025. India was
one of the first countries to initiate trade
talks with the US when Prime Minister
Narendra Modi visited Washington in
February last year. The steep US
tariffs, which came into effect on
August 27, 2025, have dampened
exports, and have triggered
cancellations in orders and delayed

2 • Vol. 22 • No. 2 • February 2026

market share as shipments of
garments, footwear and other products
are being replaced. New Delhi is
aggressively pushing for newer
markets and has signed as many as
three free trade agreements, with
Oman, New Zealand and the UK, in
2025.
Tariff & anti-dumping duty
imposed by US
As per the minutes of the BoT
meeting, Rajasthan said US tariffs have
resulted in the “cancellation of orders”
in the gems and jewellery sector and
that “payments were also not coming”.
The Spices Board said that “US tariffs
had created a crisis with a 50 per cent
duty on oleoresin”. Oleoresins help
manufacturers achieve flavour and
aroma in their final products.
Even as US tariffs have left out generic
drugs, representatives from Goa
flagged that “pharma exports had
been affected due to tariffs. The
Seafood Exporters Association also
flagged a “significant drop in exports”
to the US.

While the representative from Tirupur
Exporters Association (TEA) stated
that the government should subsidise
the difference in the US tariffs on India
and those with its competitors, the
Engineering Export Promotion Council
of India said that Market Access
Initiative was not available for the last
nine months and the utilisation of
funds under Export Promotion Mission
(EMP) would need to be expedited.
EMP was announced in the Budget
last year, with the Commerce and
Industry Ministry announcing the
modalities of the scheme only on
December 31, 2025.
Beyond US tariffs, representatives also
broached concerns over anti-dumping
duties imposed by the US. Gujarat’s
representative expressed apprehension
of an impact on exports due to the
imposition of anti-dumping duty by the
US. The Spices Board also raised
concerns due to “anti-dumping and
Countervailing Duties (CVDs)”.
While the US has initiated most antidumping investigations against China,
it has launched as many as nine
probes on industrial items exported
from India since July last year,
including products such as hexamine,
oleoresin paprika, certain freight rail
couplers, and overhead door
counterbalance torsion springs.
In November BOT meet, more than
120 representatives provided
suggestions on the hurdles they faced.
Container shortages & lack of
testing facilities
Assam’s representative said tea
exports from the state face hurdles
due to “shipping line levies for empty
containers” in the context of the state
being landlocked. The representative
highlighted the need for taking suitable
action to ensure “competitive freight
rates” from Inland Container Depot
(ICD) Amingaon to Kolkata and urged
the Department of Commerce to
Contd. on next page

INSIGHT

3

Contd. from PREVIOUS page
“engage with exporters so that they
could use Amingaon as the preferred
point of exports”. Gujarat’s
representative also flagged the
shortage of shipping containers and
its impact on exporters.
Shortages of testing facilities were
also flagged by a number of labourintensive sectors and states. While
Rajasthan said that “export samples
go to Surat and other places for testing
and therefore, there is a need for
testing labs in the state”, Uttarakhand
said that “there was no testing lab and
exporters have to go to UP for testing”.
Testing labs are crucial for exporters
to ensure products meet international
quality, safety, and regulatory
standards and prevent costly shipment
rejections.
The Seafood Exporters Association
sought “Marine Products Export
Development Authority and National
Accreditation Board for Testing and
Calibration Laboratories accredited
labs since the Export Inspection
Council (EIC) did not have the requisite
number of labs for testing. EIC is the
official export certification body of
India, which ensures the quality and
safety of products exported from India.
The Confederation of Indian Industry
(CII) also reiterated the need for testing
labs.
Access to input material &
regulatory costs
While a MSME representative said
prices of domestic raw materials
remain 15-20 per cent higher than
international prices, representatives
from the textiles sector said that “the
energy costs for spinning and
manufacturing were higher by around
15-20 per cent, which needed to be
compensated”.

“An industry representative indicated
that the Bureau of Indian Standards
(BIS) standards were being made
applicable even for products, which are
being exported to the US and the
European Union, in line with their
standards, as in respect of certain
items, BIS standards are more
complex,” the minutes of the meeting
showed.
The Gem and Jewellery Export
Promotion Council (GJEPC) said
restrictions on gold, platinum and
silver were a source of concern.
GJEPC sought an automatic route
where duty benefits are not available.
The council pointed out that the
restriction has “made component
imports more expensive”. “The
representative from the ceramics
industry in Morbi mentioned that the
District Export Committees need to be
monitored since the meetings were not
being held regularly,” minutes of the
meeting showed. Another industry
representative said: “MSMEs had
challenges with Quality Control Orders
(QCOs), stating that QC inspectors
must be facilitatory.”
Goyal on investments and quality
At the BoT meeting, Commerce
Minister Piyush Goyal underscored the
importance of quality and said that
India’s global reputation as a reliable
exporter hinges on ensuring the
highest standards in every product and
consignment.
On the issue of labs, Goyal said that
the lab in Santacruz Electronics
Export Processing Zone (SEEPZ) is
supported by Gem and Jewellery
Export Promotion Council (GJEPC)
and there are Central Revenues Control
Laboratory (CRCL) labs of CBIC.
“GJEPC is looking at setting up labs
and the State Governments would be
urged to provide suitable building for
setting up of such labs,” Goyal said.
On investments, the minister
mentioned that Sembcorp of

Singapore is planning to set up a 1000
crore industrial park while other groups
like EMMAR and Capital Land too
were interested in setting up tourism
and industrial park facilities. He asked
state or UT governments to identify
appropriate land parcels and compete
for setting up of such parks.
“On the FTAs, the minister mentioned
that India was negotiating Free Trade
Agreements (FTAs) with EU, US,
Oman, New Zealand, Chile, Peru,
Australia, Bahrain, GCC, EAEU,
Canada and SACU. Moreover, PTAs
were being considered with Brazil and
Israel,” he said.
Following the press briefing after the
BoT, Goyal during said that export
growth is expected to register a growth
going forward. Goyal stated that the
Export Promotion Mission (EPM)
would incorporate targeted schemes
to help landlocked States enhance
their competitiveness in the export
sector. The Ministry of Commerce has
begun implementing EPM to improve
competitiveness of the exporters.
QCO Overhaul
The government last year also started
overhauling Quality Control Orders
(QCOs) which had hurt micro, small
and medium enterprises with
domestic prices of raw materials
becoming costlier. Dozens of QCOs
ranging from chemical intermediates,
synthetic fibres to polymer resins that
were adversely impacting the textile
sector supply chain were rolled back.
The Centre also revoked seven QCOs
on key minerals, including nickel,
copper and aluminium, after months
of push back by the domestic industry.

February 2026 • Vol. 22 • No. 2 • 3

COUNTRY PROFILE

4

Profile of

Bulgaria

International trade
As an EU member, Bulgaria participates fully in the EU customs union and
common commercial policy, so its external trade is shaped by EU trade
agreements and regulations. Its main trading partners include other EU states
such as Germany, Italy, Romania, Greece, and non EU partners like Turkey
and Russia, with key export items being machinery, electrical equipment, refined
petroleum, metals, pharmaceuticals, and agricultural products.
Bulgaria is a small, open European
economy that has transitioned from a
centrally planned system to a market
oriented structure, with services and
industry as the main drivers of growth.
As a member of the European Union
(EU), it benefits from access to the
single market, EU funds, and
integration into European value chains,
including automotive components,
machinery, and IT services.
Economy and Structure
Bulgaria’s economy is classified as an
upper middle income to high income
economy, with key sectors including
manufacturing (machinery, metals,
chemicals), agriculture, energy,
transport, and a growing IT and
business services segment. The
country maintains a currency board
arrangement and generally prudent
fiscal policies, which have helped keep
public debt relatively low by EU
standards.
Per Capita GDP
In 2024, Bulgaria’s GDP per capita in
current dollars is estimated at about
17,400 US dollars, while in Purchasing
Power Parity (PPP) terms it stands
around 34,000 US dollars. This places
Bulgaria below the EU average but
above its own historical levels,
reflecting steady convergence with
more developed EU economies over
the last two decades.

4 • Vol. 22 • No. 2 • February 2026

Trade with India and Indian exports
India–Bulgaria bilateral trade is modest in absolute terms but diversified, with
total trade around 300–400 million US dollars in recent years. According to
India’s Department of Commerce and the Indian Embassy in Sofia, India’s exports
to Bulgaria were about 159 million US dollars in 2019–20, 170 million in 2020–
21, and over 220 million in the latest reported year, showing overall growth
despite fluctuations. Major Indian export items to Bulgaria include: Electric
machinery and equipment, Tobacco and tobacco products, Plastics and plastic
articles. , Wool and related textiles, Stainless steel flat rolled products and
other steel items, Woven cotton fabrics and other textile products etc. India’s
merchandise exports to Bulgaria in calendar year 2024 were about USD 216.9
million, and they have grown from roughly USD 170 million in 2020 to about
USD 216–224 million by 2024, implying cumulative growth of around 27–30% over
2020–2024.

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• EXPORT OPPORTUNITIES IN EURASIAN ECONOMIC UNION 2025
• TECHNOLOGY TRANSFER AND UV FOR SMES 2025
• GLOBAL MARKET FOR ELECTRICAL COMPONENTS AND PRODUCTS FOR MSME 2025
• GLOBAL MARKET FOR AUTO COMPONENTS (4TH EDITION)
• GLOBAL MARKET FOR FRESH HORTICULTURAL PRODUCTS 2025
• EXPORT OPPORTUNITIES IN THE UNITED KINGDOM 2025
• GLOBAL COMPETITIVENESS FOR SMES 2025
• THE RESURGENT AFRICA: A CONTINENT IN INDUSTRIAL TRANSITION 2025
• GLOBAL MARKET FOR BUILDERS’ HARDWARE AND TOOLS 2025

Copies available at: AMA Media Outlet,
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For copies, please send your request E-mail to : ama@amaindia.org
Website: www.amaindia.org.

LOGISTICS

5


Maersk’s December IMEA Market
Update highlighted new reefer rail
services launched in late November,
including ICD Sanand to Pipavav
Port (weekly, 43 x 40' reefers) and
ICD Palwal’s first reefer block train,
boosting cold-chain exports from
Gujarat and Northern India.

MIAL’s freight curbs may hit
India’s exports; cargo body
warns disruptions
India’s air cargo agents have
warned that the proposed 10 month
suspension of freighter operations
at the Mumbai airport — India’s
second-largest air cargo hub —
could disrupt export flows, push up
freight rates, and damage the
country’s reputation as a global
cargo hub, Business Standard has
learnt. The Adani Group-led
Mumbai International Airport Limited
(MIAL)
informed
aviation
stakeholders, including air cargo
operators, on December 11 that
Mumbai airport will completely
suspend freighter flights from
August 2026 to May 2027 to recarpet its main runway, construct
a new taxiway, and rebuild the
apron used by freighter aircraft for
loading and unloading. The Air
Cargo Agents Association of India
(ACAAI) responded on December
19, urging MIAL to “immediately
reconsider” the complete closure of
freighter operations for such a “long
period” and to work out a model
that would allow operations to
continue.



(e.g., from INR 12,075 to 5,000 per
40' dry container) to improve export
competitiveness.

Maersk revised Dry Port
Surcharge (Export) rates for key
Indian inland locations
To continue offering our broad
portfolio of services and high level of
reliability, we are introducing the
charge Dry port Surcharge - Export
(DPS) - India Locations via India Port
of Loading to World for 20 DRY and
40 High DRY Containers with
Effective from 01st December 2025
for Regulated Countries & NonRegulated Countries. Some of these
ICDs are Panipat, Pantnagar, Patli,
and Pali, effective December 19,
2025, reducing charges significantly



Air freight from India to Asia and
Europe remained stable through
December
The Indian air cargo market is
undergoing significant disruption
following steep U.S. tariff increases.
India’s exports to the U.S.—its
largest destination—fell 37.5% from
May to September, with major
declines across key sectors:
smartphone exports dropped 58%,
engineering goods fell 16.7% year
over year (y/y) in October, and
textiles and apparel also
experienced substantial reductions.
Even previously tariff-free
categories—nearly one-third of
India’s exports to the United
States—fell 47% in the same
period, demonstrating the broad
impact beyond directly tariffed
goods.
Despite these headwinds,
underlying air cargo demand
remains resilient. Projections call for
6–9% annual growth through 2029,
driven by a structural shift toward
air for high-value, time-sensitive
goods.
Pharmaceuticals,
smartphones, and other advanced
technology products increasingly
rely on air to navigate tariff
uncertainty, global trade tensions,
and disruptions such as the Red
Sea crisis that have eroded the
reliability of ocean transport.
Infrastructure investments are also
reshaping market potential. India
now operates over 160 airports,
supported by major policy programs

including the National Logistics
Policy, PM GatiShakti, and Make in
India. However, cargo handling is still
heavily concentrated at six major
hubs, creating bottlenecks during
peak periods. New freighter
operators like Pradhaan Air Express
are adding alternative capacity and
supporting network diversification.

GUJARAT EXPORT SECTORS


Gujarat’s Fisheries Sector Export Value Surges 10X

Gujarat’s fisheries sector is
experiencing a remarkable
expansion, supported by rising
production, soaring exports, and
strategic government investments.
The value of fish exports from the
state has climbed from US$6.98
million in 2001 to over US$66.97
million in 2023–24, marking a nearly
tenfold rise over two decades. With
an average annual marine fish output
of 8.56 lakh metric tonnes over the
past four years, Gujarat has solidified
its position as India’s second-largest
marine fish-producing state. Sector
experts attribute a significant share
of this growth to the revitalisation of
Dholai Port in Navsari, which has
evolved into a major fisheries hub
since the Department of Fisheries
assumed control of its operations in
2007. To accelerate momentum, the
Gujarat government has rolled out a
US$18.11 million fisheries
development package. The initiative
focuses on enhancing shrimp
farming, cold-chain and storage
facilities, cage culture systems, and
value-added by-product processing
— all aimed at modernising marine
infrastructure and strengthening the
export value chain.

February 2026 • Vol. 22 • No. 2 • 5

TRADE NEWS

6




Pharma exports set for healthy
growth as innovator drugs go off
patents
in
five
years:
Pharmaceutical exports are
expected to continue on a healthy
trajectory over the next few years
with products worth over $250 billion
poised to go off patents by 2030,
said PharmexcilVice-Chairman
Bhavin Mehta.” We are going at
around 5-6 per cent (data up to/
inclusive of September) and I think
growth will be sustained because
..... [the] next 5 years molecules
almost of $250 billion are going off
patent... All of the big guys are
preparing to launch most of the
molecules in the regulated
markets,” Mehta told businessline,
indicating that exports could see a
“good leap” as products go offpatent protection, there are more
launches of generic versions of
these products, making it available
to more patients. In the next couple
of
years,
he
said
the
pharmaceutical industry would build
on the twin engines of domestic
growth at about 9-11 per cent and
the opportunity that awaits from offpatent drugs in exports, he said.
The domestic market is growing at
about 8-9 per cent. On both fronts
“we are doing pretty fine”, he added.
Pharmaceutical exports were
pegged at $ 30.47 billion for the year
2024-25.
India can expand exports to
Russia from $5 billion to $35
billion by 2030: GTRI: India has
the potential to raise its
merchandise exports to Russia
from about $5 billion to nearly $35
billion by 2030, according to a GTRI
report, as President Vladimir
Putin’s visit to Delhi places renewed
focus on narrowing the wide trade
gap between the two countries. The
report shows that even though
bilateral trade is touching $70
billion, India’s exports stay below

6 • Vol. 22 • No. 2 • February 2026

$5 billion while imports from Russia
remain dominated by crude oil. In
FY2025, India exported goods worth
$4.9 billion but imported $63.8
billion, leaving a trade deficit of $58.9
billion. Crude oil alone formed $50.3
billion of these imports, turning the
trade relationship into one centred
almost entirely on energy. The GTRI
Report explains that India supplies
only 2.4 per cent of Russia’s $202.6
billion import market. It notes that
Russia is a large global buyer in
many categories where India is also
a major exporter, yet India’s share
remains very small. This, the report
says, is where the opportunity lies.
Food and agriculture show the
widest gaps. Russia imported $13
billion worth of food items in 2024,
but India’s exports across fruits, oils,
meat and dairy together stayed
under $250 million. Even in areas
where India is a strong global
exporter, such as meat, oilseeds
and fruits, its share in Russia is
mostly below five per cent.
Processed food is similar, with
India’s sales remaining very limited
despite strong global capability. The
pattern continues in consumer
goods and chemicals. Russia
imported $3.13 billion of perfumery
and essential oils and $1.07 billion
of soaps and detergents, but India’s
presence stayed below three to four
per cent in most segments.
Pharmaceuticals, although India’s
biggest export category to Russia,
also reflected low penetration.
Russia imported $11.8 billion worth
of medicines in 2024, while India’s
share was $413.5 million, despite
being one of the world’s largest
pharma exporters. Textiles, apparel
and footwear show some of the
sharpest mismatches. Russia
bought billions worth of fibres,
fabrics and clothing, yet India’s
exports were a fraction of its global
strengths. Big consumer industries

like vehicles, furniture and toys
displayed the same pattern, with
India supplying only tiny amounts
to a market that buys heavily from
the world. The report states that
expanding India’s exports will not
depend only on identifying highpotential product lines but also on
fixing payment challenges.


India’s smartphone exports toUS
jump over 300% in October:
India’s smartphone exports to the
US jumped more than threefold in
October to $1.47 billion, rebounding
sharply despite tariff uncertainty
and global geopolitical tensions.
Overall, India’s global smartphone
exports rose 49% to $15.95 billion
in the same period.



Trump signs Biosecure Act,
lifting Indian pharma stocks:
Indian pharmaceutical stocks
surged on December 19, 2025, after
US President Donald Trump signed
the Biosecure Act into law as part
of the fiscal 2026 National Defense
Authorization Act. The legislation,
which restricts US federal agencies
from contracting with certain
Chinese biotech firms, sent the
Nifty Pharma index up 0.65% to
close at 22,751, as investors bet on
supply chain shifts favoring Indian
contract development and
manufacturing organizations.
President Trump signed the NDAA
on December 18, capping a monthslong legislative process that saw the
Senate pass the measure 77-20.
The Biosecure Act, embedded within
the defense bill, prohibits executive
agencies from using biotechnology
equipment or services from
designated
“biotechnology
companies of concern,” including
entities on the Department of
Defense’s Section 1260H list of
Chinese military companies.
Contd. on next page

TRADE NEWS

7



Export promotion measures
launched to offset tariffs: The
government said it is taking steps
to reduce the impact of the tariff hike
imposed by the US administration
on Indian goods. These measures,
which include launching an export
promotion mission, will enhance
diversification and resilience of the
country’s trade, it said. He said
immediate relief has been given
through trade relief measures of the
Reserve Bank of India (RBI) and the
announcement of the credit
guarantee scheme for exporters,
enhancement of domestic demand
through GST reforms, and
negotiating Free Trade Agreements
(FTAs) with more countries.



Over $3 billion of Indian exports
could become tariff-free under
FTA with Oman: Indian textiles,
chemicals and other exports worth
more than $3 billion to Oman could
become tariff-free, with New Delhi
and Muscat set to sign a trade deal
on December 18, the second day of
Prime Minister Narendra Modi’s visit
to the Gulf nation. The agreement
will provide a boost to trade as
around 83.5 percent of Indian
exports, valued at $3.42 billion in
FY25, face a tariff of about 5 percent
in Oman. Though bilateral trade
between India and Oman crossed
the $10-billion mark in FY25, India’s
exports at $4.1 billion have
significant headroom to expand in
high-value sectors such as
engineering goods, automobiles,
pharmaceuticals, food products,
textiles, and electronics.

Contd. from PREVIOUS page


India’s trade deficit narrows to
a five-month low of $24.53 bn in
Nov as exports to US pick up:
India’s merchandise trade deficit
declined to five-month low of $24.53
billion in November, driven by a fall
in gold, oil and coal imports, while
exports to the US picked up,
government export and import data
released on Monday showed. Indian
merchandise exports to the US rose
nearly 10% month-on-month to
$6.92 billion in November, the data
showed.



India’s textile exports grow 9.4%
in November: India’s textile and
apparel exports saw a significant
rise in November 2025, reaching
USD 2,855.8 million. This marks a
9.4 percent year-on-year growth.
Key segments like ready-made
garments and handicrafts showed
strong performance. Overall sector
size is estimated at USD 179 billion
for 2024-25. Cumulative exports for
January-November 2025 also
registered a slight increase.



India’s marine exports rise 16%
in Apr-Nov despite US tariff:
According to an official note, rise in
exports of marine products in the
current fiscal reflect both a
diversification in export destinations
and a structural shift in global
sourcing trends, as buyers in Asia
and Europe increasingly turn toward
Indian suppliers for consistent
quality and competitive pricing.
Despite being hit by the US’ tariff,
India’ marine products exports
increased by over 16% to $ 5.75
billion in April – November, 2025-26
on year because of a surge in
shipment across several new
markets, according to official data
released on Monday. In November,
2025, India exported marine
products valued at $ 0.87 billion, an

disruptions ease and overseas
markets begin to stabilise. Industry
representatives note that operating
conditions, while still challenging,
have improved compared to the prefestive period. Capacity Utilisation
Improves After Diwali According to
Ankit Patel, Vice-Chairman,
Chemexcil, manufacturing units are
currently operating at an average
capacity utilisation of 55–60%, a
marked improvement from below
50% before Diwali. Textiles and
Leather Demand Picks Up
Meanwhile, demand from
downstream sectors such as
textiles and leather has started to
show positive momentum. Patel
noted that a resolution of US tariffrelated issues could further boost
global trade flows. However, he
cautioned that ongoing geopolitical
tensions continue to weigh on
demand from key European
markets.

increase of 15% compared to a year
ago.

GUJARAT TRADE NEWS


Gujarat dyes and intermediates
sector sees early signs of
demand revival: Gujarat-based
manufacturers of dyes and
intermediate chemicals are
cautiously optimistic about a
demand recovery in the coming
months, as global supply chain



Weak Rupee Boosts Export
Competitiveness: Highlighting the
export outlook, Bhupendra Patel,
Chairman, Chemexcil (Gujarat
Region), said the depreciation of the
rupee has made imports more
expensive but has also improved
overall industry sentiment in recent
months. He explained that while
tariff challenges persist, the weaker
rupee has turned into a “blessing
in disguise” for exporters. As a
result,
Indian
dyestuff
manufacturers have become more
competitive globally, enabling them
to offer better pricing and benefit
from improved margins amid a
strong dollar. Strong Export
Orientation Across Markets
Currently, nearly 60% of dyestuff
exports from Gujarat cater to
markets such as Europe,
Bangladesh, the Middle East,
China, Hong Kong, Dubai,
Indonesia, and Turkey. This
diversified export base continues to
support the sector despite shortterm trade headwinds.

February 2026 • Vol. 22 • No. 2 • 7

WTO

8

 Russia’s Sberbank seeks to boost

imports, labour migration from
India after Putin’s visit: Russia’s
Sberbank is boosting trade with
India, focusing on imports and skilled
workers. The bank is facilitating
deals with over 6,000 Indian firms
new to Russian trade. Payments are
being made in national currencies,
bypassing sanctions. Russia seeks
to increase bilateral trade.
 Cabinet

approves India-Oman
FTA text: The Union Cabinet on
Friday approved the India-Oman free
trade agreement that is expected to
be signed during Prime Minister
Narendra Modi’s visit to that country
from December 17-18.The draft of
the Comprehensive Economic
Partnership Agreement (CEPA) was
approved by the lower house of
Parliament of Oman on Wednesday.
With the CEPA, India will get access
to 98% of its products in Oman and
significant access in services.
Oman’s import duty ranges from 0 to
100% along with the existence of
specific duties. 100% duty is
applicable on specific meats, wines
and tobacco products. Other than
trade investment flows between the
two sides are also expected to
benefit from the agreement. Oman is
the third largest export destination
among the Gulf Cooperation Council
(GCC) countries. The bilateral trade
between the two countries stood at $
10.6 billion with India’s exports at $
4.0 billion and imports at $ 6.5
billion.

 0% duty on 100% exports: India

secures trade deal with New
Zealand: India and New Zealand on
Monday announced the conclusion
of talks on a Free-Trade Agreement
(FTA), under which Wellington will
grant zero-duty access to 100 per
cent of Indian exports and commit
$20 billion in Foreign Direct
Investment (FDI) over the next 15
years. India, in return, has offered
liberalised duties across 70 per cent
of tariff lines, covering 95 per cent of
New Zealand’s exports to India in

8 • Vol. 22 • No. 2 • February 2026

value terms. Duties will be
eliminated immediately on 30 per
cent of tariff lines once the
agreement comes into force,
including products such as wood,
wool and sheep meat. As much as
29.97 per cent of tariff lines are on
the exclusion list, reflecting India’s
sensitivities. These include dairy
products such as milk, cream,
whey, yoghurt and cheese; animal
products other than sheep meat;
vegetables including onions, chana,
peas and corn; as well as almonds,
sugar, artificial honey and other
items.
 Australia, UAE FTAs deliver gains

for Indian exporters, but
competition bites in many
segments: India’s recent free trade
agreements with Australia and the
United Arab Emirates have produced
a mixed—but largely encouraging—
outcome, with Indian exporters
gaining market share across a
substantial portion of product
categories, even as meaningful
losses persist in several others. A
Moneycontrol analysis of post-FTA
trade data shows that both
agreements have helped Indian firms
deepen their presence where
competitiveness, scale and tariff
preferences aligned—but have also
exposed vulnerabilities in segments
where these advantages were
weaker. Since the Comprehensive
Economic Cooperation and Trade
Agreement (ECTA) came into force,
India has strengthened its export
footprint across a wide swathe of the
Australian market. India’s share of
Australia’s imports rose by more
than one percentage point in 857
product categories, covering nearly
79 percent of the total traded value
analysed. In practical terms, this
suggests that across most
economically significant product
lines, Indian exporters were able to
leverage tariff concessions, clearer
regulatory pathways and improved
market access to expand their
presence. However, the gains were
far from universal. In 2,072 product
categories, India’s share of
Australian imports declined by more
than one percentage point. These

setbacks point to areas where Indian
firms may be struggling on pricing,
product standards, logistics, or
scale, or where domestic Australian
producers and third-country
suppliers have outperformed.
Sectorally, India recorded notable
gains in passenger vehicles,
diamonds and pharmaceuticals,
while losing ground in categories
such as cast articles of iron and
steel,
highlighting
uneven
competitiveness
across
manufacturing segments.
UAE: Larger market, tougher
competition: India’s experience
under the Comprehensive Economic
Partnership Agreement (CEPA)
follows a similar pattern, though with
sharper competitive churn. Indian
exporters increased their import
share by more than one percentage
point in 1,597 product categories,
accounting for about 61.5 percent of
the total traded value examined. The
gains are concentrated in sectors
where India already had commercial
depth and where tariff reductions
amplified existing strengths—
particularly manufactured goods,
processed commodities and valueadded segments. At the same time,
the UAE market has proven more
competitive than Australia’s. In 2,564
product categories, India’s share fell
by more than one percentage point,
suggesting stronger competition
from alternative suppliers and the
challenges of sustaining momentum
in a highly diversified, price-sensitive
hub that is deeply embedded in
global supply chains.
What the FTAs really show: Taken
together, the data underscores a
critical point: preferential trade
agreements alone do not guarantee
lasting export gains. While tariff
elimination and improved access
can deliver early advantages,
sustained success depends on
competitiveness, quality, scale,
branding and supply-chain reliability.
The experience of Australia and the
UAE suggests that FTAs can widen
the playing field—but exporters still
need to win on fundamentals to
prevent erosion over time.

Published by GoG-AMA Centre for International Trade, AHMEDABAD MANAGEMENT ASSOCIATION, Core-AMA Management House,
Torrent-AMA Management Centre, ATIRA Campus, Dr Vikram Sarabhai Marg, Ahmedabad 380015 Phone: 079-26308601-5
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