Latest news with #Ralhan
Time of India
4 days ago
- Business
- Time of India
India's exports set to cross $1 trillion in FY26 on robust global demand, says FIEO
India's total goods and services exports are projected to surge over 21% year-on-year to touch $1 trillion in the fiscal year 2025-26, according to the Federation of Indian Export Organisations ( FIEO ). In 2024-25, the country's exports stood at $824.9 billion. FIEO President S C Ralhan attributed the projected growth to global buyers looking to diversify their sourcing strategies amid ongoing geopolitical and economic uncertainties. 'The free trade agreements, which India is finalising, would also help in pushing the country's outbound shipments,' he noted. For FY26, merchandise exports are expected to rise by 12% to $525-535 billion, up from $437 billion in FY25. Services exports are projected to grow about 20% year-on-year to $465-475 billion, compared to $387 billion last fiscal, PTI reported. Ralhan said that all major sectors are likely to witness robust growth, including electronics, engineering, chemicals, textiles and clothing, pharmaceuticals, and agriculture. Petroleum and gems and jewellery exports are also expected to rebound into positive territory. Export estimates for 2025-26 include $60 billion from electronics and electricals, $40 billion from machinery, $40 billion from chemicals, $30 billion from pharmaceuticals, $70 billion from petroleum products, $23–25 billion from apparel and made-ups, $30–35 billion from gems and jewellery, and $55 billion from agriculture. A key growth driver for the electronics segment will be the Production Linked Incentive (PLI) scheme. Ralhan also pointed to rising trade diversification as a catalyst, especially with U.S. buyers increasingly looking beyond China. As evidence of the shift, Apple supplier Foxconn invested $1.48 billion (around Rs 12,800 crore) in its India unit during May 14–19, according to regulatory filings. 'It is not just Apple—many other companies are also looking at India. Trade diversion from China will bring at least an additional $5 billion worth of opportunity,' said Ajay Sahai, Director General and CEO of FIEO. India's ongoing negotiations for free trade agreements with the UK, the European Free Trade Association (EFTA), and the European Union (EU) are expected to further support export growth. Additionally, an interim trade deal with the U.S., which may exempt India from reciprocal tariffs, could give Indian exporters a competitive edge, Sahai said. In FY25, the gems and jewellery sector saw exports of $29.8 billion, but the sector has experienced a decline over the past two years due to weakening demand and challenges in sourcing natural diamonds. While the outlook remains strong, Sahai cautioned about emerging headwinds, particularly from non-tariff and technical barriers. A major upcoming challenge is the EU's implementation of the Digital Product Passport (DPP) from January 1, 2026. Initially covering electronics, batteries, textiles, and construction materials, the regulation is set for broader rollout by 2030. The DPP will require detailed digital documentation of a product's life cycle—from raw material sourcing to recycling and disposal—which could significantly increase compliance costs, especially for Micro, Small, and Medium Enterprises (MSMEs). 'These are clearly protectionist measures,' Sahai said, warning that failure to comply could lead to shipment rejections or competitiveness loss in the EU market, which is increasingly focused on sustainability. The DPP follows a series of EU regulations including the Carbon Border Adjustment Mechanism, anti-deforestation rules, and the Eco Design Sustainable Product Regulation, all coming into effect from January 1, 2026. On a positive note, Sahai mentioned that geopolitical disruptions in key trade routes like the Red Sea have subsided, with shipping operations gradually resuming despite recent conflicts in the Russia-Ukraine and Israel-Hamas regions.
Indian Express
4 days ago
- Business
- Indian Express
India's exports may touch $1 trillion in FY26, headwinds remain: FIEO
India's overall goods and services exports are expected to grow by over 21 per cent year-on-year to $1 trillion during FY26 from $825 billion in the last fiscal, largely due to a jump in exports to the US, Federation of Indian Export Organisations (FIEO) President S C Ralhan said on Tuesday. Ralhan said the healthy growth may result from international buyers seeking to diversify their sourcing amid global economic uncertainties, aided by free trade agreements that India is finalising. However, he added that despite the healthy outlook, some headwinds are expected from technical and non-tariff barriers. The latest challenge facing the industry is the implementation of the Digital Product Passport (DPP), which will be introduced by the EU from 1 January 2026. It will be mandatory for a wide range of products, starting with sectors like electronics, batteries, textiles, and construction materials, with wider rollouts expected by 2030. DPP aims to digitally record, store, and share information about a product's entire life cycle—from raw materials to manufacturing, usage, recycling, and disposal. In FY26, merchandise exports are expected to grow 12 per cent to $525–535 billion from $437 billion in 2024–25, while services exports are likely to rise by about 20 per cent year-on-year to $465–475 billion from $387 billion in the last fiscal, Ralhan said. All the major sectors are expected to show a significant jump in shipments this fiscal, he said, adding that healthy growth is expected in electronics, engineering, chemicals, textiles and clothing, pharmaceuticals, and even agriculture. Petroleum and gems and jewellery exports will also be in the positive zone in the coming year. DPP may increase the compliance burden, particularly for exporters from the Micro, Small and Medium Enterprises (MSMEs) sector. 'These are clearly protectionist measures,' Sahai said. Non-compliance with DPP requirements may lead to rejection of consignments or loss of competitiveness in the EU market, which is becoming increasingly sustainability-focused, Sahai said. This DPP follows the EU's carbon tax, deforestation regulations, and the Eco Design Sustainable Product Regulation—all of which will come into force from 1 January 2026. He also said that issues pertaining to the Red Sea and the wars between Russia–Ukraine and Israel–Hamas have eased, and in fact, ships have started moving through the Red Sea. Ravi Dutta Mishra is a Principal Correspondent with The Indian Express, covering policy issues related to trade, commerce, and banking. He has over five years of experience and has previously worked with Mint, CNBC-TV18, and other news outlets. ... Read More
The Hindu
5 days ago
- Business
- The Hindu
Export boost: Government restores RoDTEP scheme, allows leather exports from all ports
The Ministry of Commerce and Industry has, over the last few days, taken steps to enhance the competitiveness, cost-effectiveness and reach of India's exports, including for leather items made in Tamil Nadu. On Monday (May 26, 2025) evening, the government announced that the Directorate General of Foreign Trade had removed port-related restrictions on the export of certain types of leather. Earlier, finished leather, wet blue leather, and East India tanned leather had to be exported from particular notified ports. Now, all such restrictions have been lifted, meaning these leather items can be exported from any port or inland container depot. East India tanned leather, produced using a special process involving vegetable dyes, has earned Tamil Nadu a Geographical Indication (GI) tag, giving the product an exclusive branding like Darjeeling Tea or Kanchipuram silk sarees. In addition, the government has also done away with the mandatory requirement for testing and certification by the Central Leather Research Institute (CLRI) for the export of these leather items. 'These procedural requirements were originally instituted to monitor export of value-added leather products and distinguish them from raw hides and dutiable items,' the Ministry of Commerce and Industry said in a release. 'However, with the removal of export duties on such leather categories and the clear physical distinction between processed and raw leather, the existing checks were considered redundant,' it added. Restoration of scheme for reimbursing exporters Another decision that could have a major impact on boosting India's export competitiveness is Tuesday's announcement of the restoration of the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for exporters done by Advance Authorization (AA) holders, Export-Oriented Units (EOUs), and units in Special Economic Zones (SEZs). Initiated in 2021, the RoDTEP scheme reimburses exporters for any embedded duties, taxes, or levies that are not otherwise reimbursed under any other existing scheme. The aim was to make Indian exports more competitive. The scheme benefits were available till February 5 of this year, following which export bodies lobbied hard for an extension, which has now come to pass. The move was cheered by export bodies. SC Ralhan, the president of the Federation of Indian Export Organisations (FIEO) said that it would go a long way in 'improving the global competitiveness of Indian exporters' and that the extension of RoDTEP benefits to AA, EOU, and SEZ units 'reflects the government's recognition of their critical role in India's export ecosystem'. While the government has said the benefits would be restored from June 1, 2025, Mr. Ralhan requested the government to make them available from February 7, 2025, as this would ensure a seamless transition between when the benefits were revoked and when they were restored.
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Business Standard
5 days ago
- Business
- Business Standard
Govt restores Rodtep export benefits for SEZs, EOUs starting June 1
The government on Monday restored benefits under the Remission of Duties and Taxes on Exported Products (Rodtep) scheme for exports of goods manufactured in special economic zones (SEZs) and export-oriented units (EOUs), starting June 1 this year. The commerce ministry had announced the withdrawal of Rodtep benefits for such units starting February 6 this year. Under the Rodtep scheme, various central and state duties, taxes, and levies imposed on input products, among others, are refunded to exporters to boost India's exports. The scheme ensures zero-rating of exports, making them competitive. 'The support under the Rodtep scheme for exports of products manufactured from advance authorisations, SEZs, and EOUs is restored with effect from June 1, 2025,' the Directorate General of Foreign Trade said in a notification. FIEO President S C Ralhan said the industry has been earnestly seeking parity in Rodtep coverage for all export segments, particularly those contributing substantially to India's value-added exports. 'The extension of Rodtep benefits to advance authorisation, EOU, and SEZ units reflects the government's recognition of their critical role in India's export ecosystem. The restoration will not only ensure a level playing field for these entities but also boost the price competitiveness of their products in international markets,' Ralhan said. He added that this is vital support at a time when Indian exporters are navigating intense global competition and demand uncertainties. 'It will certainly help in pushing exports and improving India's share in global trade,' he said, urging the government to consider making this restoration effective from February 7, 2025, so there is no gap in Rodtep coverage. According to the earlier notification, the existing Rodtep benefits for these entities were applicable only up to February 6, 2025. 'A seamless transition would ensure stability and predictability for exporters and avoid any disruption in trade planning or pricing,' Ralhan said.
Time of India
5 days ago
- Business
- Time of India
Export push: Govt restores benefits under RoDTEP scheme
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel New Delhi: The government Monday announced that it has restored the Remission of Duties and Taxes on ExportedProducts (RoDTEP) scheme benefits for units operating under Advance Authorisation Export Oriented Units (EOUs), and Special Economic Zones (SEZs), with effect from June 1, RoDTEP scheme aims to refund taxes and duties that are not rebated under any other scheme and benefit rates range between 0.3-4.3%.'This positive step will go a long way in improving the global competitiveness of Indian exporters operating under these key export promotion schemes, said S C Ralhan, President, Federation of Indian Export Organisations (FIEO).The existing RoDTEP benefits for these entities are applicable only up to February 6, restoration of RoDTEP benefits to Advance Authorisation, EOU and SEZ exporters will not only ensure level playing field for these entities but also boost price competitiveness of their products in international markets.'This is a vital support at a time when Indian exporters are navigating intense global competition and demand uncertainties. It will certainly help in pushing exports and improving India's share in global trade ,' Ralhan support to exports comes amid India's merchandise exports rising a six-month high of 9.03% year-on-year to $38.49 billion in April and India negotiating free trade agreements with the US and the EU. India and the UK have already announced the conclusion of an FTA.
