The ministry of ports, shipping and waterways added to the momentum by notifying operational guidelines for two flagship shipbuilding initiatives — the Shipbuilding Financial Assistance Scheme and the Shipbuilding Development Scheme. These measures seek to strengthen domestic shipbuilding capacity, reduce dependence on foreign yards, and enhance India’s global competitiveness in a strategically important sector.
From the finance ministry came a mix of revenue-raising and trade-defence actions. Taxes on tobacco products will increase from the beginning of next month. Safeguard duty was imposed for three years on certain steel items, and anti-dumping duties were notified on six more products. The ministry also operationalised certain provisions of trade agreements with Australia and the European Free Trade Association, extended the transitional period for implementing the Sea Cargo Manifest and Transshipment Regulations, 2018, and continued efforts to align customs procedures with international practices.
The commerce ministry complemented these steps by permitting the export of 50,000 tonnes of organic sugar, restricting imports of low-ash metallurgical coke of specified grades, and extending the minimum export price on natural honey. These measures reflect a calibrated approach—encouraging exports where domestic availability permits, while restraining imports that could harm local producers.
Taken together, these announcements indicate the government’s resolve to support exports, facilitate trade, improve market access through trade agreements, promote self-reliance in shipping, protect vulnerable domestic industries, and shore up revenues that may have been affected by recent cuts in goods and services tax rates.
They also coincide with official claims that India has become the world’s fourth largest economy, having overtaken Japan, and remains the fastest-growing major economy.
These assertions are supported by encouraging GDP growth in the first two quarters of the financial year, relatively low inflation, easing interest rates, improving employment indicators, and comfortable foreign exchange reserves. This resilience has held despite foreign institutional investors withdrawing funds from equity markets, putting pressure on the rupee. Several ministries have highlighted their achievements through year-end press releases, reinforcing a sense of confidence.
Yet, the very need for fiscal support to exports and protective duties for domestic producers underlines a deeper concern: weak competitiveness. While aggressive pricing by Chinese producers has intensified pressure in global markets, structural challenges persist. Limited scale, high logistics and transportation costs, compliance burdens, and regulatory uncertainties continue to erode the competitiveness of Indian products.
The government appears aware of these constraints. High-level committees have been tasked with reviewing regulatory frameworks, leading to the withdrawal or deferment of several quality control orders.
For importers and exporters, the key expectation this year is further deregulation — simpler procedures, predictable compliance, and lower costs.
How far the government is willing to pursue deregulation, while navigating a difficult global trading environment and balancing domestic vulnerabilities, will determine whether this early-year optimism translates into sustained export growth.
Email: tncrajagopalan@gmail.com
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