MOOWR Scheme Explained: How India’s Manufacturing Got a Export Booster

MOOWR Scheme Explained: How India’s Manufacturing Got a Export Booster

What is the MOOWR Scheme?

MOOWR stands for Manufacturing and Other Operations in Warehouse Regulations

Introduced by the Central Board of Indirect Taxes and Customs (CBIC) in 2019

Operates under Section 65 of the Customs Act, 1962

Designed to allow manufacturing, assembly, and processing inside bonded warehouses

Core objective: reduce working capital pressure and boost exports

At its heart, the MOOWR scheme allows companies to import raw materials and capital goods without paying customs duty upfront, as long as they operate within a licensed bonded warehouse.

Why Was the MOOWR Scheme Introduced?

India’s manufacturers faced:

High upfront import duties

Cash flow constraints

Cost disadvantages compared to global peers

Export-oriented units often struggled with:

Delayed refunds

Compliance-heavy incentive schemes

The government needed:

A simple, WTO-compliant

sector-agnostic

location-neutral solution

MOOWR emerged as a structural reform, not a subsidy, making Indian manufacturing globally competitive without fiscal giveaways.

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How the MOOWR Scheme Works

Companies apply for:

Private bonded warehouse licence

Permission for manufacturing under Section 65

Once approved:

Imported goods enter the warehouse without payment of customs duty

Manufacturing or other operations are carried out inside the facility

Duties are paid only when:

Finished goods are sold in the domestic market

No duty is paid at all if:

Finished goods are exported

This deferral mechanism dramatically improves cash efficiency.

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Key Benefits of the MOOWR Scheme

Zero upfront customs duty

Frees large amounts of working capital

No export obligation

Unlike older schemes such as EOU

No minimum investment requirement

Applicable across sectors

Electronics, engineering, chemicals, auto, aerospace

Location flexibility

Warehouse can be set up anywhere in India

Simplified compliance

Minimal physical supervision

Digital record-keeping accepted

For capital-intensive industries, this becomes a strategic advantage rather than a tax benefit.

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Real Example 1: Electronics Manufacturing in India

A global electronics contract manufacturer imports:

PCBs

Semiconductor components

Display units

Under normal imports:

Customs duty is paid upfront

Refunds take months

Under MOOWR:

Components enter duty-free

Assembly happens inside bonded warehouse

Exported smartphones attract zero customs duty

Domestic sales pay duty only at time of clearance

This model significantly improved cash cycles for electronics exporters operating in states like Tamil Nadu and Uttar Pradesh.

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Real Example 2: Heavy Engineering and Capital Goods

An engineering firm importing:

Turbines

Industrial motors

High-value steel components

Capital goods alone attract substantial customs duty

Under MOOWR:

Machinery imported duty-free

Used for long-term manufacturing

Duty payment deferred indefinitely unless goods are cleared domestically

For firms with multi-year project cycles, this directly impacts project viability.

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Real Example 3: Aerospace and Defence Manufacturing

Aerospace suppliers importing:

Precision components

Special alloys

Finished products exported to global OEMs

MOOWR allows:

End-to-end duty-free manufacturing

Compliance with global supply chain norms

Several Tier-2 and Tier-3 aerospace vendors in India adopted this to align with global aerospace ecosystems.

MOOWR vs Traditional Export Incentive Schemes

Unlike:

Duty drawback

MEIS

RoDTEP

MOOWR:

Is not an incentive

Does not depend on budget allocations

Is permanent unless withdrawn by law

No risk of:

Retrospective withdrawal

WTO disputes

This predictability is why many firms quietly shifted to MOOWR.

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Challenges and Limitations

Initial setup requires:

Strong internal controls

Detailed inventory tracking

Not suitable for:

Businesses with low import content

Requires:

Disciplined compliance

Periodic customs audits

However, once stabilised, operational friction remains low.

Why MOOWR Matters for India’s Manufacturing Push

Supports:

Make in India

Atmanirbhar Bharat

Encourages:

Global manufacturers to set up India operations

Aligns India with:

Global bonded manufacturing practices used in China, Vietnam, and Mexico

Moves policy from:

Incentive-driven to efficiency-driven manufacturing

MOOWR quietly addresses the cost disadvantages that once held Indian manufacturing back.

Final Takeaway

MOOWR is not a headline-grabbing scheme

It is a structural enabler

For import-intensive manufacturers, it:

Improves cash flow

Enhances export competitiveness

Reduces compliance anxiety

Its real strength lies in:

Simplicity

Predictability

Global alignment

In many ways, MOOWR is India’s most under-discussed manufacturing reform.

CASE STUDY : Isuzu Motors India (IMI) utilizes the MOOWR

Isuzu Motors India (IMI) utilizes the MOOWR (Manufacturing and Other Operations in Warehouse Regulations) scheme to enhance its export competitiveness and optimize operational costs at its manufacturing facility in Sri City, Andhra Pradesh. 

Isuzu’s Implementation of MOOWR

Export Operations: In April 2023, Isuzu became one of the first major automobile OEMs to commence vehicle shipments under this scheme.

Infrastructure: IMI operates a specialized MOOWR warehouse in addition to its standard storage areas within its plant.

Economic Impact: As of late 2024, Isuzu has achieved a production milestone of one lakh (100,000) vehicles from its Sri City facility, partly supported by the flexibility of this regime.

Export Growth: In FY 2024–25, Isuzu’s commercial vehicle (CV) exports rose by 24% to 20,312 units, highlighting the scheme's role in boosting international sales. 

Core Benefits for Isuzu

The MOOWR scheme, governed by Section 65 of the Customs Act, 1962, offers specific financial advantages: 

Duty Deferment: Customs duties on imported raw materials and capital goods are deferred at the time of import.

Duty Exemption on Exports: When finished vehicles are exported, the deferred import duties on the components used are completely waived.

Domestic Sales: If vehicles are sold in India, Isuzu only pays the duty at the time of "clearance" for domestic consumption.

Working Capital Efficiency: By deferring taxes until the point of sale (or avoiding them entirely through exports), Isuzu reduces the capital blocked in taxes. 

Regulatory Context for 2025

For businesses operating under MOOWR in 2025, it is important to note:

Recent Amendments: Changes introduced in the Finance Act, 2023, now require the payment of IGST and Compensation Cess at the time of depositing goods into the warehouse, whereas Basic Customs Duty (BCD) remains deferred until domestic clearance.

Compliance: Units must maintain digital records and file monthly returns to track duty-unpaid inventory. 

References

Customs Act, 1962 – Section 65

CBIC Manufacturing and Other Operations in Warehouse Regulations, 2019

Ministry of Finance trade facilitation circulars

Industry case studies from electronics, engineering, and aerospace sectors

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#MOOWRScheme #MakeInIndia #ManufacturingIndia #ExportGrowth #TradeFacilitation #IndianManufacturing #India #exports #CustomsReforms #SupplyChainIndia #AtmanirbharBharat #GlobalManufacturing #IndustrialPolicy #BusinessIndia

#internationaltrade

India’s Spice Trade Finds Its Rhythm

India’s Spice Trade Finds Its Rhythm 

India’s spice exports are showing steady resilience at a time when global trade remains uncertain. Fresh figures from the Ministry of Commerce and Industry indicate that India exported spices worth ₹21,374.78 crore during the latest reporting period, marking a growth of 3.35 percent over the ₹20,682.71 crore recorded in the same period last year. The numbers may appear modest at first glance, but behind them lies a deeper story of supply chain adaptation, shifting global demand, and the quiet persistence of millions of Indian farmers and processors.

Spices have always been more than a commodity for India. From black pepper and cardamom grown on the slopes of the Western Ghats to cumin and coriander cultivated across the dry belts of Rajasthan and Gujarat, spices are woven into the country’s agrarian economy. India remains the world’s largest producer, consumer, and exporter of spices, supplying over 180 countries across continents.

The latest export growth signals a return to stability after years of disruption caused by pandemic-era logistics bottlenecks, volatile freight costs, and uneven harvests linked to climate variability. While some agricultural exports have struggled to maintain volumes, spices have benefitted from consistent global demand, especially for everyday cooking ingredients rather than premium niche products.

Chilli continues to dominate India’s spice export basket, accounting for the largest share in both volume and value. Indian chillies are shipped in bulk to markets in Southeast Asia, West Asia, and the United States, where they are used in processed foods, sauces, and seasoning blends. Cumin has emerged as another strong performer, driven by higher overseas demand and better price realisation, particularly from Middle Eastern and European buyers.

Pepper, once the undisputed king of Indian spice exports, has faced stiff competition from Vietnam and Brazil. Yet Indian pepper has retained its niche in premium markets due to its aroma, oil content, and traceability standards. Similarly, turmeric exports have remained robust, supported by growing international interest in natural health products and traditional remedies.

One reason for the sustained momentum is the gradual improvement in quality compliance. Indian exporters have had to respond to tighter food safety regulations in importing countries, especially in Europe and North America. Residue limits, traceability requirements, and packaging norms have forced a shift away from informal supply chains towards more organised sourcing.

The role of the Spices Board of India has been critical in this transition. Through farmer training programmes, export infrastructure development, and laboratory testing support, the board has helped exporters meet global standards while keeping costs under control. More farmers are now adopting scientific drying, grading, and storage practices, reducing rejection rates at foreign ports.

Technology has also begun to play a subtle but important role. Digital traceability systems, farm-level data collection, and better price discovery through online platforms have reduced information gaps between growers and exporters. While adoption is uneven, especially among smallholders, the direction of change is clear.

Global consumption patterns are also evolving in India’s favour. As international cuisines become more mainstream, demand for authentic spice profiles has increased. Indian spices are no longer seen only as raw ingredients but as flavour markers tied to regional identities. This has allowed exporters to command better margins for specific varieties such as Byadgi chilli, Alleppey turmeric, and Malabar pepper.

Challenges

Climate stress continues to affect yields in key growing regions, particularly for rain-dependent crops like pepper and cardamom. Price volatility at the farm gate can discourage farmers from investing in quality improvements. Logistics costs, while lower than pandemic peaks, remain higher than pre-2020 levels.

There is also increasing competition from other producing nations that have invested heavily in mechanisation and scale. Countries like Vietnam, Indonesia, and Ethiopia are expanding their spice footprints, often with strong state backing. India’s advantage lies in diversity rather than volume dominance, but converting diversity into export strength requires sustained policy support.

Looking ahead, value addition is expected to be the next major lever of growth. Instead of exporting primarily whole or ground spices, India is pushing towards spice oils, oleoresins, blends, and ready-to-use seasonings. These products offer higher margins, longer shelf life, and stronger brand recognition. Several Indian companies have already begun expanding their presence in this segment, targeting food manufacturers rather than retail consumers.

The steady 3.35 percent growth recorded this year may not grab headlines, but it reflects something more durable. In a volatile global environment, India’s spice sector has managed to grow without dramatic price spikes or policy shocks. It has done so by leaning on institutional support, farmer resilience, and the enduring global appetite for Indian flavours.

For an economy that still depends heavily on agriculture for livelihoods, spices offer a rare combination of tradition and trade competitiveness. As long as quality, sustainability, and market access remain policy priorities, India’s spice exports appear well positioned to maintain their momentum.

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Key Facts: India’s Spice Exports

India exported spices worth ₹21,374.78 crore in the latest reported period

This represents a 3.35 percent growth compared to ₹20,682.71 crore in the corresponding period last year

Data is released by the Ministry of Commerce and Industry, Government of India

India is the world’s largest producer, consumer, and exporter of spices

Indian spices are exported to more than 180 countries

Chilli remains the largest export item by value and volume

Other major exported spices include cumin, turmeric, pepper, coriander, and cardamom

Growth reflects steady global demand, especially from West Asia, Southeast Asia, Europe, and the United States

Improved quality standards, traceability, and food safety compliance have supported export stability

The Spices Board of India plays a key role in farmer training, quality control, and export facilitation

Recommendation

From an investment and policy perspective, the real opportunity lies in Indian spice processors and value-added exporters rather than raw commodity players. Companies focusing on branded exports, oleoresins, and food-grade compliance stand to benefit most as global buyers increasingly prioritise quality and traceability over price alone.

If you want, I can next convert this into an investor-focused deep dive, a farmer-impact story, or a sectoral stock outlook linked to listed spice companies.

How Jumbo Bags Quietly Carry the World’s Heaviest Loads

How Jumbo Bags Quietly Carry the World’s Heaviest Loads

In the complex choreography of global trade, attention often rests on ships, ports and towering cranes. Yet beneath these visible giants lies a quieter force doing much of the real work. The jumbo bag — technically known as the Flexible Intermediate Bulk Container — has become one of the most dependable tools in modern cargo handling. Often associated with the standard one-ton load, these bags have quietly evolved far beyond that threshold, carrying heavier, denser and more demanding cargo across industries and continents.

The idea behind the jumbo bag is deceptively simple: a flexible, woven container capable of holding bulk material safely while remaining easy to lift, stack and store. Its brilliance lies not in spectacle but in efficiency. From farms and mines to chemical plants and ports, jumbo bags have become the connective tissue of bulk logistics.

While the one-ton bag remains the industry benchmark, it is no longer the upper limit. Across the world, higher-payload jumbo bags — carrying 1.2, 1.5 and even 2 tons — are now firmly embedded in industrial supply chains.

From Standard to Heavy-Duty

The early popularity of the one-ton jumbo bag stemmed from its perfect balance of strength and practicality. It could be lifted by standard forklifts or cranes, stacked neatly in containers, and collapsed flat when empty. For many years, this capacity suited most bulk transport needs.

But industries do not stand still. As construction volumes rose, mining operations expanded, and logistics costs came under pressure, companies began asking a simple question: why move the same material in more bags than necessary?

The answer drove the rise of higher-payload jumbo bags. Today, bags rated above one ton are routinely used for dense materials such as sand, aggregates, minerals, cement, fertilisers and industrial chemicals. In these settings, heavier bags mean fewer lifts, fewer units to manage, and faster turnaround times — all critical in high-volume operations.

Crucially, these bags are not just larger versions of standard designs. They are purpose-built, engineered to handle significantly greater stress.

Engineering Strength Into Flexibility

What allows a flexible bag to carry two tons of material without failure is not bulk, but precision. Heavy-duty jumbo bags use higher-tenacity polypropylene yarns, woven into denser fabrics with superior tear resistance. Stitching patterns are carefully designed to distribute load evenly across seams, reducing the risk of rupture under lift.

The lifting loops — often the most stressed components — are reinforced, widened and sometimes integrated into sleeve-lift designs that spread force more uniformly. Many higher-payload bags also incorporate internal baffles, which help the bag maintain a stable, box-like shape when filled. This improves stacking, reduces bulging and enhances safety during handling.

Safety factors play a quiet but vital role. Heavy-duty bags are tested well beyond their rated working loads, ensuring they can withstand the dynamic stresses of real-world use. In busy ports and industrial yards, where speed often meets rough handling, this margin of safety is essential.

Where Heavier Bags Make Sense

The adoption of jumbo bags above one ton has been strongest in sectors where material density and volume converge.

Construction sites use them for sand, gravel and crushed stone, where moving larger loads reduces labour and handling cycles. Mining operations rely on them to transport ores and concentrates efficiently from extraction points to processing facilities. Chemical and fertiliser producers favour higher-capacity bags to move bulk powders while minimising packaging waste. Even agriculture, traditionally associated with lighter loads, uses heavier bags for grains, sugar and animal feed in large export consignments.

In each case, the logic is the same: fewer bags mean fewer touchpoints, lower packaging costs per tonne, and faster logistics.

India’s Practical Contribution

India has emerged as one of the most important players in this evolution. With strong textile expertise, cost-efficient manufacturing and deep demand from domestic industries, Indian producers have become global suppliers of heavy-duty jumbo bags.

Indian manufacturers routinely offer bags in the 1.25-ton to 2-ton range, tailored to the realities of cement plants, fertiliser factories and mineral exporters. Designs often prioritise durability over aesthetics, with thicker fabrics, robust loop construction and UV resistance for outdoor storage in harsh climates.

Innovation in India is typically practical rather than flashy. Hybrid fabrics blending synthetic strength with natural fibre breathability are used for agricultural products. Dust-proof and leak-resistant liners address the needs of fine powders. Automated weaving and stitching have improved consistency and quality, allowing Indian firms to meet demanding international standards while remaining competitive.

Sustainability Without Compromise

The rise of heavier jumbo bags might appear at odds with sustainability, but in practice it often supports it. Moving more material per bag reduces the total number of bags required, lowering overall material consumption. Better stackability improves container utilisation, reducing the number of shipments needed for the same cargo volume.

At the same time, manufacturers are incorporating recycled polypropylene into heavy-duty bags without sacrificing strength. Multi-trip designs are becoming more common, extending product life and reducing waste. Even at higher payloads, the focus is shifting from disposable packaging to durable, circular solutions.

Smart Bags for Heavy Loads

Digital technology is beginning to find its way into this space as well. Heavy-payload jumbo bags are increasingly fitted with RFID tags for tracking and inventory control. Sensors can monitor temperature, humidity or stress during transit, offering valuable data for sensitive or high-value cargo.

For operators moving two-ton loads through automated warehouses or ports, this data adds a layer of confidence and control that was previously impossible.

The Realistic Upper Limit

While it is technically possible to design bags for even heavier loads, practical limits exist. Handling equipment must be capable of lifting and controlling such weight safely. Regulatory frameworks, site conditions and human safety considerations all impose boundaries.

As a result, two tons has emerged as the practical upper limit for widespread jumbo bag use. Beyond this, rigid containers or specialised bulk handling systems often become more efficient. The jumbo bag thrives not by replacing every solution, but by occupying the sweet spot between flexibility and strength.

Quietly Carrying the Weight of Trade

The jumbo bag will never be the most visible symbol of global commerce. It does not sparkle with technology or dominate skylines. Yet it carries, quite literally, the weight of modern industry.

From the familiar one-ton bag to its heavier, more muscular successors, this simple innovation has adapted to the evolving demands of trade with remarkable grace. In doing so, it has proven a timeless truth of logistics: progress is often driven not by what we see, but by what works — quietly, reliably and at scale.

If the world’s supply chains have unsung heroes, the jumbo bag, even beyond one ton, surely deserves a place among them.

India’s Maritime Ambition: In the Age of Maritime Amrit Kaal

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India’s Maritime Ambition: In the Age of Maritime Amrit Kaal

India's maritime ambition during the "Maritime Amrit Kaal" is guided by the Maritime Amrit Kaal Vision 2047, a transformative roadmap to establish India as a premier global maritime and shipbuilding leader by the centenary of its independence. This vision focuses on comprehensive port development, sustainability, digital transformation, and strengthening the blue economy. 

India stands at a critical juncture in its industrial and strategic journey

Once a formidable maritime power whose ancient vessels plied trade across the Indian Ocean and beyond, the country has in modern decades fallen far behind global competitors in shipbuilding. Today, it pays an estimated $75 billion every year to foreign companies to carry its cargo and vessels, money that flows out of the economy even as India’s own merchant fleet remains small. This gap — between a rich maritime history and a meagre present — is the central challenge of the nation’s Maritime Amrit Kaal Mission.

For centuries, Indian mariners and shipbuilders were celebrated for their craftsmanship and seafaring prowess. They connected coastal cities from Arabia to Southeast Asia and Japan, spreading culture and commerce. But with colonial rule and industrial shifts, the focus moved away from heavy engineering to other priorities. By the time the world embraced steel ships after the Industrial Revolution, India’s shipbuilding capacity had waned. New global leaders soon emerged. Japan surged ahead after the Second World War, followed by South Korea and China, transforming shipbuilding into engines of industrial growth and export strength.

Today, China dominates global shipbuilding with well over half of worldwide capacity. South Korea and Japan make up most of the rest, leaving India with barely a fraction of global output. In gross tonnage terms, India accounts for under one-tenth of one per cent of shipbuilding activity and ranks around twentieth globally. Even in ship ownership — the fleet of vessels registered under India’s flag — its share is under 1 per cent. In practical terms, nearly 92 per cent of India’s foreign trade by volume is carried on foreign ships.

These figures are more than economic trivia; they reflect a vulnerability. When the Covid-19 pandemic disrupted global supply chains, Indian exporters struggled as international vessels avoided or altered port calls. The Russia–Ukraine conflict complicated crude imports and routing. And during the Red Sea crisis, when Houthi attacks forced many Western carriers to detour around Africa’s Cape of Good Hope, India had too few vessels of its own to fully take advantage of its geographic position. These events underscored the strategic cost of relying on others for sea transport.

In response, the Indian government has launched bold policy initiatives under the umbrella of Maritime India Vision 2030 and Maritime Amrit Kaal Mission 2047. These programs aim not just to modernize ports and logistics, but to build a robust domestic shipbuilding ecosystem that can rank among the world’s top five. Central to this vision is a comprehensive package of incentives and funding reforms — including nearly ₹70,000 crore in targeted support to expand shipbuilding capacity, promote vessel ownership by Indian firms, and modernize repair and dismantling facilities.

A key component of this strategy is demand creation. The government has directed major state-owned companies in sectors such as oil and fertilisers to ensure that at least 30 per cent of their fleet needs are met by Indian vessels. This guaranteed baseline demand is designed to give domestic shipbuilders the confidence to scale — a crucial step in an industry where production volumes determine cost competitiveness.

Efforts to modernize the industry are also visible in collaborations and investments. India’s flagship shipyard, Cochin Shipyard Limited (CSL), has signed long-term agreements with global players and is expanding facilities to support large-scale block fabrication — the modern method of building ships in modular sections. Partnerships with international shipbuilders are being explored to bring technology, design expertise, and efficient processes into Indian yards. There are plans for new shipbuilding hubs and clusters along the east and west coasts, with potential greenfield projects that could create tens of thousands of jobs.

Another promising development is the interest shown by global shipping companies in Indian yards. For the first time, major international firms have placed shipbuilding orders in India, signalling a shift in perception about Indian capabilities and cost structures. This interest is partly shaped by global geopolitical dynamics — companies are diversifying supply chains beyond traditional centres like China and South Korea.

The defence and government sectors are also driving growth. Indian shipyards have built advanced naval vessels — from aircraft carriers to submarines — showcasing technical prowess in complex engineering. A growing fleet of indigenous warships and patrol vessels not only strengthens national security but also builds deep industrial skills that can cross over into commercial shipbuilding.

Yet, despite this momentum, several challenges remain. Indian shipyards generally operate with older machinery and lower levels of automation than their global peers, resulting in longer build times and higher costs. Supply chains for critical components like marine steel and specialised equipment are still largely imported, making indigenous manufacturing more expensive. Attracting skilled talent into a demanding industry with long project cycles has been difficult, hampering productivity.

The ship repair and maintenance sector — a lucrative segment of global maritime activity — has similarly lagged. While nations like Singapore, China, and the UAE have become go-to destinations for vessel overhauls and dry-dock services, India’s capacity remains limited. Enhancing these capabilities is part of the broader vision, as repair and maintenance can provide steady, high-value work for Indian yards while larger ship orders scale up.

Addressing these structural challenges requires sustained policy support beyond incentives. Industry experts argue for stronger industry-academia partnerships to develop workforce talent, more integrated maritime clusters with local suppliers, and regulatory reforms to ease project execution. There is also a push to rationalize taxes and levies that currently make Indian-flagged shipping less competitive.

Despite these hurdles, the timing of India’s push could not be better. As global ship demand begins to plateau after years of high growth, according to industry analysts, Indian demand for vessels and maritime services is set to rise. If India can leverage this window to build capacity, attract global partnerships, and evolve its domestic market, it might finally catch the shipbuilding bus it missed in the last century.

India may not yet rival the world’s shipbuilding giants, but the contours of a comeback are visible. Through sustained government action, clearer incentives, and a recognition of maritime power as national power, the country is positioning itself to finally re-enter an industry it once dominated. If momentum is maintained, the coming decades may see Indian-built ships once again becoming a common sight on global sea lanes — not as a nod to history, but as a marker of industrial renewal.

Cross-Border Payments at an Inflection Point: Speed, Control and Systemic Design

Cross-Border Payments at an Inflection Point: Speed, Control and Systemic Design

Cross-border payments are core financial infrastructure. They determine how efficiently trade is settled, capital is deployed and remittances move across economies. 

For decades, this infrastructure has been dominated by slow correspondent banking networks, high compliance costs and fragmented liquidity. As the global system moves towards 2026, cross-border payments are undergoing a structural reset, driven by regulation-aware technology rather than disruption for its own sake.

The transformation is best understood not as a race between technologies, but as the convergence of four capabilities: instant payment rails, tokenised settlement, AI-led compliance and trusted digital interfaces. Jurisdictions that combine these effectively will gain disproportionate influence over regional payment flows.

Real-time payment rails are now the foundation layer. Domestic instant systems have matured across major economies, but the strategic shift lies in interoperability. Linking national systems allows cross-border retail and SME payments to clear in seconds rather than days, with materially lower costs and higher transparency. Asia has emerged as the global leader in this model, with multiple bilateral and multilateral linkages already live.

India’s real-time infrastructure is central to this development. UPI’s scale, reliability and open architecture have enabled cross-border extensions with neighbouring and partner economies. These corridors demonstrate that retail cross-border payments can be fast, low-cost and regulatorily controlled without relying on correspondent banking chains. From a systemic perspective, this reduces settlement risk, improves traceability and strengthens monetary oversight.

However, real-time rails address only part of the cross-border universe. Large-value transactions, trade finance settlements and institutional liquidity movements require different instruments. This is where tokenised money and blockchain-based settlement are being adopted in a constrained, use-case driven manner. The focus is shifting away from speculative crypto assets towards regulated tokenisation of deposits and settlement balances.

Banks and financial institutions are increasingly testing blockchain rails for reconciliation, intraday liquidity management and cross-border treasury operations, particularly in high-volume Asian and Middle Eastern corridors. The efficiency gains are tangible: atomic settlement, reduced nostro balances and improved auditability. Regulatory acceptance remains conditional, but the direction is clear: tokenisation is becoming a back-end efficiency tool rather than a consumer-facing product.

Compliance remains the principal bottleneck in cross-border payments. Screening for sanctions, anti-money laundering, counter-terror financing and foreign exchange controls accounts for a significant share of transaction cost and delay. As payment speeds increase, traditional rule-based compliance systems struggle to keep pace without generating excessive friction.

AI-driven compliance systems are emerging as a structural enabler. By analysing transaction behaviour across large datasets, machine learning models can assess risk dynamically, prioritise genuine threats and reduce false positives. For regulators, this improves systemic visibility. For institutions, it allows faster settlement without diluting control. By 2026, intelligent compliance is likely to be a prerequisite for scalable cross-border instant payments.

The user-facing layer of this infrastructure is evolving through digital wallets and programmable payment interfaces. These are no longer standalone consumer products, but integrated access points to identity, payments and compliance credentials. When linked to real-time rails and automated checks, wallets abstract complexity while preserving regulatory safeguards.

For trade-oriented economies, the macro implications are significant. Faster settlement improves cash flow efficiency for exporters and service providers. Lower transaction costs enhance competitiveness. Reduced reliance on correspondent banking strengthens resilience against external shocks. At a policy level, interoperable payment systems provide optionality without undermining monetary sovereignty.

Globally, cross-border payments are becoming more multipolar. While the US dollar remains dominant, regional payment networks are expanding in Asia, the Gulf and parts of Africa. This reflects a pragmatic recalibration rather than de-dollarisation rhetoric. Efficiency, redundancy and risk management are the primary drivers.

By 2026, no single technology will define cross-border payments. The decisive factor will be system design: real-time rails supported by tokenised settlement, governed by AI-led compliance and accessed through trusted digital interfaces. Jurisdictions that align regulation, infrastructure and incentives will shape the next phase of global payment flows.

 Cross-border payments will become faster, cheaper and more predictable, embedded into everyday economic activity. Behind that normalisation will sit a deliberate re-engineering of global financial plumbing, with long-term implications for trade, capital movement and financial stability.

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Conclusion

Cross-border payments are entering a decisive phase where speed alone is no longer the objective. The real challenge is achieving faster settlement without weakening control, transparency or financial stability. The global system is therefore not converging on a single technology, but on a layered architecture.

Instant payment rails are setting new expectations for settlement speed. Tokenised money and blockchain-based settlement are improving efficiency in high-value and institutional flows. AI-driven compliance is becoming essential to manage risk at scale. Digital wallets and programmable interfaces are abstracting complexity for end users while preserving regulatory safeguards.

The most significant shift is architectural rather than technological. Payments are moving away from fragmented correspondent banking chains towards interoperable networks governed by data, automation and real-time oversight. This transition is incremental, but structural. By 2026, cross-border payments will not feel revolutionary, but they will be materially faster, cheaper and more predictable than today.

Jurisdictions and institutions that align regulation, infrastructure and incentives will shape the next phase of global payment flows. Those that treat payments as strategic infrastructure rather than a utility risk falling behind.

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Recommendation

From a policy and long-term investment perspective, the optimal approach is convergence, not selection.

• Instant payment rails should form the foundation for retail and SME cross-border flows, particularly in high-volume corridors. Interoperability, not scale alone, should be the priority.
• Blockchain and tokenised settlement should be pursued selectively for institutional use cases such as trade finance, treasury operations and interbank settlement, where efficiency gains are measurable and controllable.
• AI-led compliance systems should be treated as core infrastructure. Without intelligent, real-time risk management, faster payments will remain constrained by manual checks and regulatory friction.
• Digital wallets and programmable interfaces should be viewed as access layers, not standalone products, enabling seamless interaction with increasingly complex back-end systems.

The most durable advantage over the next five years will come from AI-enabled compliance layered onto real-time payment infrastructure, with tokenisation used tactically rather than universally. This combination delivers speed with control, efficiency with oversight, and innovation without systemic risk.

That balance, more than any single technology, will define leadership in cross-border payments.

Imported Food Compliance in India: Batch Numbers, Best Before Dates and the Bill of Entry Explained

Imported Food Compliance in India: Batch Numbers, Best Before Dates and the Bill of Entry Explained

FSSAI requirements, documentation expectations, and the role of the Bill of Entry

In the import of food products into India, compliance failures rarely arise from unsafe goods alone. More often, they stem from incomplete traceability. A missing batch number, an unclear best before date, or inconsistent documentation can halt a consignment even when the product itself meets all safety standards.

India’s food import regime, governed by the Food Safety and Standards Authority of India, places traceability at the centre of enforcement. Understanding how FSSAI norms interact with customs procedures is therefore essential for importers, logistics providers, and customs brokers alike.

This article examines when batch, lot and best before details are mandatory, where they must appear, and whether the Bill of Entry is legally required to carry them.

Why FSSAI places emphasis on batch and shelf-life information

Under the Food Safety and Standards Act, food safety is not limited to composition or hygiene. It also includes the ability to trace food back to its source. Batch and lot numbers are the mechanism that makes recalls possible. Best before and use by dates protect consumers from degraded or unsafe food.

FSSAI’s approach is product-centric. The primary obligation lies on the food itself and its labeling. However, during imports, documentation becomes the first point of verification, which is why authorities increasingly scrutinise shipment papers for these details.

Mandatory labeling requirements under FSSAI for imported food

FSSAI regulations require every packaged food item, whether manufactured in India or imported, to carry the following on its label:

Name of the food

List of ingredients

Net quantity

Name and address of manufacturer and importer

Country of origin for imported food

Batch number, lot number, or code number

Date of manufacture or packing

Best before or use by date

For imported food, these details may appear on the original label or be added through rectification or relabeling in a bonded warehouse, subject to approval by the authorised officer.

Batch or lot numbers are not optional. At least one traceability identifier must be present on the label in a clear and legible manner.

Shelf-life requirements at the time of import

FSSAI mandates that imported food must have a valid remaining shelf life at the time of import. While the exact percentage may vary by product category or specific order, expired food or food nearing expiry without adequate remaining life is liable for rejection.

This makes the best before or use by date a critical compliance element at the import stage. Authorities routinely verify this during document scrutiny and physical inspection.

Do FSSAI norms require batch or best before details on shipment documents

Strictly speaking, FSSAI regulations do not prescribe a mandatory format for commercial invoices, packing lists, or Bills of Entry. Their legal focus remains on labeling.

However, FSSAI import clearance operates through a risk-based assessment system, where officers examine documents to determine whether sampling, testing, or inspection is required. In this process, batch and shelf-life details become operationally significant.

If shipment documents do not clearly indicate batch numbers or best before dates, officers may:

Seek clarifications

Order additional inspection

Insist on label verification through physical examination

Delay clearance pending compliance confirmation

As a result, while not explicitly mandated in writing, inclusion of these details in shipment documents has become an accepted compliance expectation under FSSAI import procedures.

The Bill of Entry and its legal scope

The Bill of Entry is a customs document governed by customs law, not food law. Its primary function is assessment of duty, classification, and import eligibility.

There is no statutory requirement under FSSAI or customs law to declare batch number, lot number, or best before date as compulsory fields in the Bill of Entry.

However, customs authorities act as the implementing arm for FSSAI at ports. When food items are flagged for FSSAI clearance, officers may request supporting information even if it is not a predefined Bill of Entry field.

Many importers therefore voluntarily include batch or lot information in the goods description section of the Bill of Entry, particularly for regulated food categories.

This is a compliance strategy, not a legal mandate.

Recommended document format aligned with FSSAI expectations

To align with FSSAI norms and minimise clearance delays, the following format is widely considered best practice.

Commercial Invoice

Product name and brand

HS code

Batch or lot number

Date of manufacture or packing

Best before or use by date

Net quantity

Country of origin

Packing List

Package or pallet number

Product description

Batch or lot number

Quantity per batch

Gross and net weight

Bill of Entry (Description Field)

Product name and brand

Packaging type

Net quantity

Batch or lot number (recommended, not mandatory)

For consignments involving multiple batches, a separate annexure titled “Batch and Shelf-Life Details” should be referenced consistently across all documents.

FSSAI inspection and ground-level enforcement reality

In practice, FSSAI officers place strong emphasis on consistency. The batch number on the label should match the batch number on the invoice or annexure. The best before date should logically align with the manufacturing date. Discrepancies, even minor ones, often lead to sampling or reinspection.

Importers who rely solely on minimum legal requirements frequently encounter delays. Those who proactively disclose batch and shelf-life details across documents generally experience smoother clearance.

Conclusion

Under FSSAI norms, batch or lot numbers and best before dates are mandatory for imported food products at the labeling level. While the law does not compel their declaration on every shipment document or the Bill of Entry, enforcement practice strongly favours transparency and traceability.

In the Indian food import environment, compliance is no longer just about meeting the rules. It is about demonstrating control.

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Recommendation

For food imports into India, always align your documentation with FSSAI’s traceability philosophy. Include batch or lot numbers and best before dates on invoices and packing lists, and reference them in the Bill of Entry wherever feasible. This approach goes beyond bare compliance and significantly reduces regulatory friction at the port.

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Disclaimer

This article is intended solely for general informational purposes and does not constitute legal, regulatory, or professional advice of any kind. The content is based on laws, regulations, and administrative practices as generally understood at the time of writing; however, such laws, interpretations, and enforcement practices are subject to change and may vary by jurisdiction, port, or authority.

The author makes no representations or warranties, express or implied, regarding the accuracy, completeness, or current applicability of the information contained herein, and expressly disclaims all liability for any loss, damage, delay, penalty, or adverse consequence arising directly or indirectly from the use of, reliance upon, or interpretation of this article.

Readers are strongly advised to seek independent professional advice and to verify applicable legal and regulatory requirements with the appropriate authorities before acting on the basis of the information provided. The views expressed are solely those of the author and do not purport to represent any official position of any regulatory or governmental body.

ISO 14083 Certification: The New Global Benchmark for Transport Emissions

ISO 14083 has rapidly emerged as the world’s primary standard for calculating and reporting greenhouse-gas emissions from transport chains. Published in 2023 and now adopted across major logistics networks, the standard brings long-needed consistency to an area long plagued by fragmented methods, varying assumptions and non-comparable carbon figures. As pressure intensifies on supply chains to demonstrate credible climate performance, ISO 14083 is quickly becoming essential for companies seeking transparency, compliance and competitive advantage.

Why ISO 14083 matters now?

Transport emissions form one of the most complex parts of corporate carbon accounting. Goods may move through multiple countries, modes and subcontractors. Until recently, different companies used their own formulas, leading to wide discrepancies in results. ISO 14083 provides a uniform, auditable methodology that ensures emissions for every leg, mode and handling operation can be calculated in a comparable way.

Its importance has grown sharply over the past year. Large buyers now routinely request ISO-aligned emissions reporting from logistics partners. Several national and regional regulators, particularly in Europe, are incorporating requirements for transparent, standardised carbon disclosure in freight. As decarbonisation deadlines approach, companies can no longer afford vague or inconsistent reporting. ISO 14083 has become the shared language the sector was missing.

What the standard actually covers

ISO 14083 sets out rules for calculating emissions from the full movement of goods and people across road, rail, sea and air. It defines boundaries, data requirements and allocation methods clearly, ensuring that every tonne of emissions is accounted for consistently.

Key elements include:

Activity-based calculations: It prioritises real operational data such as fuel consumption, electricity used, distance travelled and load factors.

Treatment of complex journeys: Multi-leg routes, intermodal transfers and hub activities are handled using uniform rules that avoid double counting.

Emission factors: It provides guidance on selecting appropriate and up-to-date factors for fuels, electricity and energy sources.

Data quality tiers: Companies can start with representative or modelled data and move progressively toward higher accuracy as systems improve.

Industry uptake and tools

Since late 2023 and throughout 2024–25, adoption has accelerated. Global logistics giants, postal operators, major freight forwarders and e-commerce supply chains have already aligned their calculators to ISO 14083. Industry frameworks such as the GLEC Framework have been updated to maintain compatibility, and certification bodies now offer ISO 14083 conformity assessments.

Digital tools have also evolved quickly. Many transport management systems and carbon-accounting platforms now include ISO 14083-aligned modules, enabling firms to shift from spreadsheet-based estimation to automated, auditable reporting. This has made implementation more practical even for smaller operators.

Practical implications for companies

Implementing ISO 14083 typically requires three steps:

1. Strengthen data capture

Organisations must gather high-quality data on fuel, distance, payload, equipment type and route specifics. Partner and subcontractor data sharing becomes crucial.

2. Integrate systems

ISO 14083 works best when transport management, telematics, fleet systems and carbon tools are connected. Reducing manual inputs improves accuracy and auditability.

3. Establish governance

Companies increasingly appoint a single process owner for emissions accounting, supported by internal audits or third-party verification. Buyers now expect documented evidence of methodology and data quality.

Common challenges

Many companies encounter similar hurdles:

Incomplete data from carriers, especially for subcontracted legs. Templates and contractual requirements are becoming standard solutions.

Electricity-based transport complexity as the carbon intensity of grid power varies widely by region and hour. Firms must choose representative and current factors.

Handling multimodal and cross-border journeys where data formats and units differ.

Cost pressures for smaller carriers implementing new digital tools or verification processes.

Industry groups are publishing step-by-step guidance emphasising practical, phased adoption rather than perfection on day one.

What’s next

The momentum behind ISO 14083 is strengthening. Over the next year, expect:

Greater regulatory alignment as governments incorporate standardised transport emission accounting into disclosure rules.

More buyer-driven enforcement, with ISO-aligned reporting becoming a default requirement in procurement.

Continued harmonisation with sector tools and calculators, making implementation smoother and reducing duplication of reporting efforts.

Rising demand for certified conformity, especially in international freight where trust and comparability are crucial.

ISO 14083 is also becoming a foundation for optimisation. Once emissions are measured consistently, companies can pinpoint hotspots such as empty runs, inefficient modes and high-emission routes — enabling targeted decarbonisation initiatives.

Recommendations

Companies operating or relying on logistics networks should adopt ISO 14083 immediately. Begin by mapping your top transport lanes, identify where accurate data already exists, and upgrade systems to capture fuel, electricity and load information automatically. Use an ISO-aligned calculator, mandate data templates for partners and appoint a dedicated owner for verification. Early adopters will not only meet incoming compliance expectations but also gain operational insights and reputational advantages.

Global Container Shipping: Overcapacity, Security Shifts : What to expect for the Next Six Months

As 2025 draws to a close, the container shipping industry stands at the intersection of two powerful forces: a historic wave of new vessel deliveries that is pushing global capacity well beyond demand, and the lingering effects of two years of maritime security disruptions centred around the Red Sea. Together, they have reshaped freight markets, altered carrier behaviour, and introduced a new level of strategic caution across global logistics networks.

This month, the picture is becoming clearer. Despite temporary spikes in freight rates earlier in the year due to diversions around Africa, the structural reality is now asserting itself: too many ships, not enough cargo, and a gradually stabilising but still fragile security situation in the Middle East. The following report summarises the major developments in November 2025, and examines what shippers and investors can expect over the next three to six months.

Overcapacity Dominates the Narrative

The industry’s central challenge remains unchanged: new vessel deliveries continue to arrive faster than global demand can absorb. The orderbook — placed largely during the 2021–2022 freight-rate boom — is now maturing. Several major carriers, tonnage providers and brokers have warned in recent weeks that global container fleet growth will remain well above organic trade growth through 2026.

This month, large shipyards in Asia have delivered several high-capacity vessels, some exceeding 20,000 TEU, at a time when cargo volumes across the main East–West lanes have been seasonally stable but far from exceptional. Utilisation rates on select Asia–Europe and Trans-Pacific services have hovered in the low-to-mid 80% range, a clear indicator that capacity is outstripping demand.

Freight rates reflect this imbalance. After firming earlier in the year due to Red Sea diversions, rates have softened again as reroutings stabilise and carriers face fewer disruptions. Spot prices on key corridors continue to show week-to-week volatility, but the underlying direction remains downward. The greatest pressure is visible on contract negotiations, where shippers are pushing for more flexible terms and lower baseline rates heading into early 2026.

Across the industry, a cautious and defensive tone is emerging. Some carriers have already described next year as “challenging” or “margin-tightening,” particularly for operators heavily exposed to spot markets.

Commercial Adjustments and Tactical Measures

With little room to manoeuvre on capacity in the short term, carriers have intensified tactical measures to preserve yield. Blank sailings have become more common across multiple alliances, particularly on high-capacity loops where seasonal demand weakens in Q1. Slower steaming, a familiar tool from past downturns, is re-appearing as a cost-control measure.

However, none of these tactics can fundamentally reverse the mathematics of oversupply. The global fleet is simply growing too quickly. Several analysts note that the orderbook will continue to deliver large vessels well into 2027, even if some owners attempt late-stage deferrals or cascade older ships into secondary regional trades.

The seasonal reduction in Trans-Pacific and Asia–Europe demand in the early months of the year will amplify these pressures. Unless global trade volumes receive a large, unexpected stimulus, carriers will need increasingly aggressive network adjustments to prevent utilisation from falling further.

Security: A Cautious but Noticeable Shift in Red Sea Dynamics

The other defining factor of the past two years — maritime insecurity triggered by Houthi attacks — shows tentative signs of easing. Following a ceasefire in Gaza earlier this quarter, the Houthis signalled a halt to attacks on commercial shipping. This announcement has been met with cautious optimism by carriers, charterers, and insurers.

A limited but perceptible flow of container traffic has begun returning to the Suez route, reducing the number of Cape-of-Good-Hope diversions that had stretched transit times and increased bunker consumption. However, nobody in the industry is treating the pause as permanent. The risk of a sudden flare-up remains high, and war-risk premiums continue to reflect that uncertainty.

The memory of earlier 2025 incidents — including the sinking or severe damage of several commercial vessels and the capture of crew members — is still fresh. For many operators, a full restoration of confidence will require months of stable conditions without further escalation. For now, routing decisions through the Red Sea remain heavily risk-assessed and conditional.

What the Next Three Months Are Likely to Bring (Dec 2025 – Feb 2026)

The coming quarter is expected to be shaped by three intertwined trends: seasonal demand softening, continued structural oversupply, and a complex security transition.

First, freight rates are likely to remain under pressure throughout Q1. Without the strong peak-season uplift that typically precedes the end of the year, carriers will face a quiet period in which pricing power is limited and operational costs remain high.

Second, as more ships deliver in early 2026, the overall fleet capacity will expand further. Commercial strategies such as blank sailings will continue, but will not fully counteract the arrival of new large vessels.

Third, the industry will continue to test the waters on Red Sea routing. If the current calm holds, more services may shift back to the Suez Canal, gradually restoring shorter transit times. But insurers are unlikely to retreat too quickly, and shippers will continue to hedge risk with alternative routings, buffer inventory, or diversified schedules.

For shippers, this window represents a strong negotiating period: contract terms, flexibility clauses, and rate agreements can often be secured at more favourable levels when carriers face utilisation difficulties.

Outlook for tye Next 6 Months 

Looking further ahead, the container shipping sector is expected to remain in a low-rate, oversupplied environment. Fleet expansion will continue and global trade growth — while steady — shows no signs of returning to the double-digit patterns seen in earlier decades.

Carriers with diversified operations, including port services, inland logistics, and integrated supply-chain products, may demonstrate greater resilience. Meanwhile, pure ocean-carriers reliant on spot markets face a more uncertain landscape. Some industry observers suggest that the coming year may test the limits of current alliances and could even spark a new wave of consolidation or strategic restructuring.

On the security front, a cautious optimism may grow if the Red Sea stabilises further. Any sustained calm would encourage a normalisation of routing patterns and potentially bring small reductions in insurance premiums. But geopolitical conditions remain fragile, and the industry is preparing for rapid response should tensions resurface.

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 Conclusion (Concise and Actionable points)

For Shippers:

Use the next 2–3 months to renegotiate contracts or secure short-term agreements with favourable terms. Maintain flexible routing plans and keep war-risk assessments updated for every voyage through the Red Sea.

India’s trade landscape: key regulatory updates on Free Trade, SEZs and EXIM

India’s trade landscape: key regulatory updates on Free Trade, SEZs and EXIM 

Over the past three months New Delhi has introduced a string of changes affecting Special Economic Zones (SEZs), Free Trade Warehousing Zones (FTWZ), export-import (EXIM) policy instruments and export incentives — moves aimed at boosting exports while tightening compliance on certain products.

What changed (high level)

• SEZ rule amendments and faster approvals. The Ministry of Commerce has continued implementing amendments to the SEZ Rules (2006) introduced earlier in 2025, with Board of Approval meetings and supplementary agendas through August underscoring a push to simplify land norms and accelerate approvals for strategic sectors (notably semiconductors and electronics). 

• FTWZ clarifications on tax and GST treatment. Recent rulings and advance rulings at state levels have clarified that sales of goods held inside FTWZ (before clearance for home consumption) do not constitute a ‘supply’ for GST purposes — reinforcing the treatment that Customs duty/IGST is triggered on clearance to home consumption rather than intra-FTWZ transactions. This reduces tax uncertainty for warehousing operators and traders using FTWZ for value-added operations. 

• DGFT notifications tightening and loosening specific product rules. The Directorate General of Foreign Trade (DGFT) has issued multiple policy updates in recent weeks adjusting export conditions for agri-products and industrial inputs, including timely notifications (early October) on rice-related HSN classifications and other products — reflecting nimble, product-level policy shifts to respond to domestic supply and international market signals. 

• Short-term extension of export incentive schemes. The government extended the Remission of Duties and Taxes on Export Products (RoDTEP) scheme to March 2026 — a continuity measure for exporters that preserves tariff rebate predictability while broader trade negotiations and policy reviews proceed. 

• Operational tweaks: Advance authorisations and export obligations. DGFT has also amended procedural timelines (for example in Advance Authorisation export obligations and quality control compliance) to ease compliance for importers, EOUs and SEZ/FTWZ users in certain product lines — a practical step to reduce friction for exporters reliant on input imports. 

What this means for businesses and trade flows

1. Clarity for warehousing and value-added trade: FTWZ users and logistics providers gain legal certainty on GST and customs timing — likely encouraging more manufacturers to perform finishing/assembly in FTWZ before deciding on export vs home-consumption. 

2. Policy nimbleness: The DGFT’s product-by-product notifications signal a move toward targeted controls (e.g., agri items) rather than blanket trade restrictions — exporters should therefore monitor weekly DGFT notices. 

3. Continuity of incentives: Extending RoDTEP through March 2026 sustains competitiveness for exporters through a turbulent global trade year. 

Risks & watchpoints

• Rapid, frequent product notifications increase compliance burden — exporters must beef up monitoring and counsel. 

• Any future SEZ rule changes tied to land or end-use could affect investment decisions for large projects; watch Board of Approval minutes and MoC circulars. 

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My pick & recommendation (short)

For exporters and logistics firms: treat the next 90 days as a monitor & adapt window. Prioritise (1) regular DGFT notices subscription, (2) contractual clauses that account for product-level policy changes, and (3) review whether moving higher-value finishing steps into FTWZ can defer tax triggers and improve flexibility. 

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References 

1. SEZ India (Ministry of Commerce) — SEZ notices, BoA minutes and rule amendments. 

2. DGFT — Trade Notices / Public Notices (DGFT portal). 

3. Tamil Nadu AAR / FTWZ GST discussion and rulings (tax commentary). 

4. Reuters — RoDTEP extension to March 2026 (news reporting). 

5. DGFT product notifications and recent amendments (trade advisory summaries). 

A New Era in Global Shipping: The Arctic Express

A New Era in Global Shipping: The Arctic Express

A Chinese shipping company, Haijie Shipping, is poised to launch what could be a transformative route in global freight transport. Beginning 20 September, a vessel known as the Istanbul Bridge—with a capacity of 4,890 TEU—will set sail from Qingdao, with stops at Shanghai and Ningbo, before navigating the Northern Sea Route (NSR) to reach Europe. The planned European ports include Felixstowe in the UK, Rotterdam in the Netherlands, Hamburg in Germany and Gdańsk in Poland .

Dramatic Reductions in Transit Time

The Arctic Express is projected to shorten the journey significantly. The voyage is expected to take around 18 days, compared to 40–50 days via the traditional Suez Canal or Cape of Good Hope routes . Some sources cite up to 50 per cent lower transit times. That speed is not just an improvement—it is potentially game-changing, particularly for time-sensitive goods.

Who Benefits?

Retailers, manufacturers and e-commerce platforms stand to benefit the most. Faster delivery translates into reduced inventory costs and faster capital turnover. The inaugural voyage is already fully booked, indicating strong demand for rapid, reliable logistics—especially ahead of Europe’s holiday season .

Seasonality and Future Prospects

For now, the service remains strictly seasonal. Arctic sea ice conditions currently enable navigation only between late July and early November . Organisers indicate plans to commission higher ice-class ships—such as Arc7 vessels—that could make year-round transit feasible in future years .

Geopolitical and Strategic Dimensions

This route underscores China’s broader ambition to develop the “Polar Silk Road,” part of its Arctic policy in collaboration with Russia. The Northern Sea Route could reduce China’s reliance on southern chokepoints such as the Strait of Malacca and the Suez Canal, enhancing trade resilience . At the same time, Arctic operations require new infrastructure—sea-ice monitoring, port services and icebreaker support.

Environmental and Operational Challenges

Despite the potential, Arctic shipping is not without risks. Ice variability, limited search and rescue infrastructure, shallow waters and higher insurance costs pose significant hurdles . Environmental groups also warn of the fragile Arctic ecosystem and urge strict oversight .

Wider Industry Moves

The inaugural route is not happening in isolation. Operators such as Newnew Shipping have already conducted multiple container voyages (13 in 2024) via the NSR, moving some 20,000 TEUs collectively . Individual voyages—such as the Flying Fish 1 (now Istanbul Bridge) making a 25-day Arctic crossing—demonstrate that shorter expeditions are viable .

The Broader Context

Global maritime trade is facing disruptions in traditional routes. Attacks in the Red Sea have prompted rerouting around the Cape of Good Hope, making alternative paths more attractive . Arctic routes bypass these congested and risky areas entirely.

Summary Table

Aspect Arctic Express (NSR) Traditional Route (Suez/Cape)

Transit Time ~18–20 days ~40–50 days

Seasonality Seasonal (Summer–Autumn) Year-round

Main Benefits Speed, lower inventory, resilience Established, scalable

Challenges Ice, infrastructure, environment Piracy, chokepoints, congestion

Final Thoughts

The launch of the Arctic Express suggests that shipping history might indeed be rewritten not in boardrooms, but across the oceans themselves. For now, it is a bold experiment—but one full of promise. If successful, this could reshape trade between China and Europe dramatically.

Would you trust your cargo to the Arctic route? The answer may depend on cargo type, timing, risk appetite and long-term market strategy.

Merchant shipping bill : A Bold Push for Transparency in India’s Maritime Sector

A Bold Push for Transparency in India’s Maritime Sector

India's maritime sector is undergoing a significant transformation with the introduction of the Merchant Shipping Bill, 2024. This legislation is designed to modernise the country's shipping regulations by replacing the Merchant Shipping Act of 1958. It reflects the government’s broader ambition to make India a global maritime hub through enhanced transparency, efficiency, and alignment with international best practices.

Overhauling an Outdated Framework

The original Merchant Shipping Act was introduced over six decades ago and has since become ill-suited to the demands of modern global trade. The 2024 Bill aims to rectify this by focusing on transparency in port-related charges, simplifying ship registration processes, enhancing digital compliance, and prioritising the welfare of seafarers.

One of the Bill's standout features is its provision that mandates service providers to clearly disclose all charges levied in connection with maritime transport. This includes costs related to port handling, documentation, and agent fees. All such charges must be listed in the Bill of Lading or its equivalent. Any failure to comply can attract penalties of up to five lakh rupees.

Crucially, the Bill does not seek to regulate freight rates, which will continue to be driven by market forces. Instead, it targets the additional surcharges and hidden costs that often frustrate exporters, importers, and logistics operators.

Broadening Ship Ownership and Registration

Another key reform under the Bill is the expanded definition of what constitutes an “Indian vessel.” It now includes ships owned by Non-Resident Indians, Overseas Citizens of India, and Limited Liability Partnerships, among others. This opens the door for broader investment and participation in India’s maritime industry.

Additionally, vessels leased under bareboat charter arrangements can now be registered in India even before the completion of payment. This change is expected to help grow India’s domestic shipping tonnage and reduce dependency on foreign-flagged vessels.

Strengthening Seafarer Welfare

The Bill proposes the creation of a dedicated Seafarer’s Welfare Board to safeguard the interests of maritime workers. This body will advise on matters related to living and working conditions, ensuring that Indian seafarers are protected under international maritime labour standards.

Improved welfare provisions are particularly significant in the context of recent global challenges, such as the COVID-19 pandemic, which exposed the vulnerabilities of seafarers stranded at sea due to port closures and quarantine restrictions.

Embracing Digitalisation

To boost operational efficiency, the Merchant Shipping Bill introduces digital processes for ship registration, certification, and compliance. By replacing paper-based systems, these reforms aim to reduce red tape, eliminate delays, and foster ease of doing business in the maritime sector.

This push towards digital transformation is in alignment with India’s national development programmes that seek to modernise infrastructure and reduce logistical costs.

Complementing Other Maritime Reforms

The Merchant Shipping Bill is one of several legislative efforts to rejuvenate India’s maritime framework. Alongside it are the Carriage of Goods by Sea Bill and the Indian Ports Bill.

The Carriage of Goods by Sea Bill aims to replace the nearly century-old law governing cargo transport. It will bring India’s regulatory framework in line with newer international conventions and offer greater contractual flexibility for shippers and consignees.

Meanwhile, the Indian Ports Bill seeks to provide statutory backing to State Maritime Boards and mandates greater transparency in port tariffs. It also proposes the establishment of a centralised Maritime State Development Council to foster collaboration between state and central authorities.

Together, these three bills form a cohesive legal ecosystem intended to position India as a competitive maritime economy.

Sectoral Benefits and Strategic Impact

The Merchant Shipping Bill is expected to yield multiple benefits:

1. Transparency in Charges: By mandating full disclosure, the Bill aims to eliminate hidden fees and ensure fair practices. This will significantly improve the experience for exporters, importers, and freight forwarders.

2. Growth in Indian Tonnage: Broader eligibility for Indian-flag registration and supportive chartering provisions will boost the domestic shipping fleet, contributing to national economic resilience.

3. Seafarer Confidence: A formal welfare mechanism ensures better oversight and working conditions for India’s large maritime workforce.

4. Efficiency through Technology: Digital workflows will shorten processing times, reduce human error, and make the regulatory system more agile.

Challenges and Future Outlook

Despite its progressive intent, the Bill does face some challenges. The enforcement of penalty clauses will need careful oversight to prevent misuse. Additionally, while the Bill covers disclosure of charges, it does not yet account for the growing use of electronic bills of lading, a matter that may require further legal clarification in future updates.

Moreover, the success of these reforms will depend heavily on the readiness of stakeholders—from ship owners and port operators to customs authorities and freight agents—to embrace change.

Nonetheless, the Merchant Shipping Bill represents a bold step towards creating a more transparent, modern, and efficient maritime sector in India. It addresses long-standing concerns, encourages investment, and aligns India’s legal structure with global norms.

As the country continues to assert itself as a major trading nation, these reforms are likely to play a crucial role in shaping the next chapter of its maritime growth story.

Top 5 Logistics Trends Transforming Indian Trade in 2025

Top 5 Logistics Trends Transforming Indian Trade in 2025

India’s logistics and supply chain sector is undergoing a remarkable transformation in 2025—driven by sustainability mandates, digital innovation, policy reforms, and strategic global partnerships. As the country aims to slash logistics costs and boost export competitiveness, a new ecosystem is emerging—smarter, greener, and more connected than ever before. Here’s a look at the top five developments shaping the future of Indian trade and what they mean for businesses navigating this dynamic landscape.

1. Green & Sustainable Warehousing Goes Mainstream 🌱

India’s warehousing landscape is undergoing a radical shift towards sustainability. Driven by global ESG requirements and multinational demands, developers are embracing energy-efficient building techniques, renewable power, and eco-friendly materials . According to a JLL India study, certified green warehousing space is set to soar from 65 million sq ft in 2024 to 270 million sq ft by 2030—quadrupling in just six years .

Why this matters for trade:

Green infrastructure helps MNCs maintain compliance with global sustainability norms, making India a more attractive sourcing destination.

Reduced operating costs and energy consumption may lead to lower warehousing prices—beneficial for exporters and importers alike.

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2. SMILE Programme & ADB‑financed Overhaul of Multimodal Logistics

India’s ambitious SMILE initiative—Strengthening Multimodal and Integrated Logistics Ecosystem—backed by a US $350 million ADB policy‑based loan, is central to modernising logistics . It fortifies the Gati Shakti Master Plan and National Logistics Policy by:

Boosting connectivity via multimodal hubs.

Standardising warehousing assets.

Promoting digitalisation in external trade.

Investing in gender‑responsive land ports to support women in logistics .

Impact on trade:

Reduces logistics costs (currently ~14 per cent of GDP, with a goal of 9 per cent) .

Strengthens internal networks, improving lead times and export competitiveness.

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3. Major Infrastructure Push: Highways, Ports & Industrial Parks

A series of Cabinet nods for infrastructure developments promise a logistics revolution :

Construction of ~166 km four‑lane highway linking Meghalaya and Assam.

New six‑lane bypass and arterial highways near Zirakpur–Patiala and JNPA Port in Maharashtra.

Establishment of a 25‑acre Panattoni industrial‑logistics park in Hosur, Tamil Nadu with €100 million investment .

Additionally, Tamil Nadu will launch a warehousing policy by October 2025, aimed at strategically clustering agri-logistics and manufacturing warehousing in tier‑2/3 cities .

Why it’s transformative:

Improved road and port connectivity slashes transit times and costs.

Purpose-built industrial parks attract FDI pool and streamline supply chains for manufacturing exports.

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4. Trade Agreements & Shifting Geopolitical Alignments

India has made significant diplomatic strides shaping trade flows:

A landmark FTA with the UK, covering 99 per cent of Indian exports, was agreed earlier in May 2025; ratification expected within months .

Under the Quad Ports of the Future Partnership, India will host an advanced ports and logistics conference in Mumbai (October 2025) alongside Australia, Japan and the US, aimed at developing cutting‑edge port infrastructure .

Consequences for logistics and exports:

FTAs lower tariff barriers, enabling traders to benefit from preferential access and boost volumes.

Collaboration through Quad can accelerate modern port practices, enhancing competitiveness of Indian maritime logistics.

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5. Supply Chain Digitalisation & AI-Driven Efficiency Gains

Digital transformation has become a core pillar. Government platforms like BharatTradeNet (BTN)—set up in the Union Budget 2025—integrate international trade documentation with customs clearance and finance . Moreover:

IndiaAI highlights the deployment of AI-powered demand forecasting, inventory optimisation and blockchain-enabled visibility .

Over 1 billion API transactions through logistics platforms (like ULIP) signify deepening digital maturity .

How it reshapes trade:

Smoother, transparent documentation reduces delays at ports and borders.

Predictive analytics enhances inventory planning, cutting waste and costs—especially vital for perishable exports.

Enhanced tracking reduces shipment loss and fraud, satisfying global buyers’ standards.

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Why These Trends Matter for India’s Trade

Cost reduction: From infrastructure to digital platforms, these reforms aim to lower the hefty ~14 per cent logistics‑GDP burden. According to projections, achieving ~9 per cent can unlock a US $100 billion export opportunity by 2030 .

Resilience & sustainability: Green warehousing, smart ports and digitalised customs create a more climate‑responsible and disruption‑ready system.

Global competitiveness: Infrastructure, FTAs and AI integration position India as a preferred alternative to China—for sectors like electronics, automotive, pharmaceuticals and agri-processing.

Tier‑2/3 uplift: Policies targeting regional warehouses and industrial parks spread logistics growth beyond metro regions—benefiting MSMEs too.

Inclusive growth: Gender‑responsive land ports and multimodal exchange points support inclusive labour participation.

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Challenges & the Road Ahead

While these trends are promising, India must address several hurdles:

1. Financing and regulation

Despite policy support, large‑scale investments require smooth regulatory frameworks and bankable models to avoid delays.

2. Skill shortage

Digital and AI‑based logistics demand a skilled workforce—training programmes and Industry 4.0 readiness are essential.

3. Association & standards

Harmonising state-level warehousing standards, customs efficiency and local infrastructure remains a challenge.

4. Last‑mile connectivity

Modern terminals need seamless linkages to rail, road and air logistics for full value-chain integration.

5. Ensuring equitable access

Prioritising tier‑2/3 regions and women-led logistics enterprises must remain central as scale-up occurs.

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Final Reflections

India’s logistics and supply chain revolution is now well underway. From green warehousing, infrastructure mega‑projects, digital platforms, AI-led processes, to FTA-fuelled trade routes, the nation is meticulously laying the foundations for sustained trade-led growth.

By tackling challenges in financing, skills and standardisation, India is ripe to reduce logistics costs, enhance resilience and climb the global value‑chain ladder. For exporters, manufacturers and MSMEs, this means faster delivery, better pricing and easier access to global markets—from Europe to the UK, UAE, and beyond.

As the calendar heads into late 2025, these trends provide both momentum and mandate for businesses to rethink supply chain strategies, invest in digital systems, and pair up with green logistics providers—a clear roadmap for future-proofing India’s trade ambitions.