Trade policy measures accelerate export growth and market diversification, expanding FTA-driven access to new territories.
Trade policy measures focus on reversing export decline by providing policy stability and targeted support to employment intensive sectors, alongside a market diversification strategy emphasising non traditional destinations. Special Economic Zones are identified as major export and employment platforms. Free Trade Agreements and Comprehensive Economic Partnership Agreements are core instruments to expand market access and integrate India with new and emerging markets.

SEZ policy reform: extend export-scheme benefits and reclassify SEZ lending to reduce costs and restore investor confidence.
Policy and operational uncertainties affecting SEZs and EOUs include withdrawal of certain tax exemptions, uncertainty over sales tax treatment and non-refund of duties. Stakeholders recommended extending Chapter III Foreign Trade Policy incentives (Focus Product, Focus Market, VKGUY) to SEZ units, reclassifying lending to SEZ developers as infrastructure lending, directing states to address stamp duty, electricity duty, VAT and refund delays, ensuring parity of concessions vis-a -vis free trade agreements, and examining measures to make Offshore Banking Units in SEZs viable.

Foreign direct investment liberalisation expands sectoral access and imposes local sourcing and infrastructure conditions to integrate suppliers.
Foreign Direct Investment liberalisation expands sectoral access and distinguishes automatic and approval routes while raising FDI ceilings in several industries. Multi brand retail entry requires a minimum foreign investment and a mandated share of that investment in backend infrastructure within a set period. Single brand retail limits are raised with a mix of automatic and approval routes. The framework ties liberalisation to local integration obligations, including procurement preferences for small industries and measures to integrate domestic manufacturers into global retail supply chains, aiming to attract inflows while promoting technology transfer, employment, and supply chain improvements.

Monetary policy: repo rate raised 25 bps to 8%, CRR unchanged, inflation focused tightening and two monthly review cycle.
The central bank raised the repo rate by 25 basis points to 8.0 per cent, left the CRR at 4.0 per cent, fixing reverse repo at 7.0 per cent and MSF/Bank Rate at 9.0 per cent. This tightening responds to elevated core and services inflation despite easing headline CPI from food price declines. The Bank undertook term repos and open market purchases to manage liquidity pressures, noted an improved external position with a lower CAD expectation, and committed to two monthly policy reviews with further action data dependent and aligned to the recommended disinflation glide path.

Policy repo rate increase to reinforce disinflationary path amid high CPI inflation and slowing growth.
The central bank increased the policy repo rate to reinforce a credible disinflationary strategy in response to persistently high CPI inflation and broad-based inflationary pressures, especially in services and wages, which threaten real incomes and the currency. The rate action aligns with a recommended glide path and baseline projections showing upside inflation risks; further tightening is not anticipated if disinflation follows the baseline, while faster disinflation would permit accommodation. The decision is framed alongside a weakening growth outlook and improving external balances, and accompanied by complementary reforms in market instruments and distressed-asset resolution.

Export duty on iron ore pellets imposed to conserve domestic iron supplies and curb sharp export growth.
Revision of production capacity based on packing machine speeds increases excise liability under the compounded levy scheme for pan masala and tobacco products packed in pouches; Central Excise notifications amend deemed production metrics and specify payable duty. Separately, an export duty on iron ore pellets has been imposed by Customs notification to address sharp export growth and protect domestic iron ore supply.

Maximum residue limit set for ethoxyquin in crustaceans restores trade certainty for shrimp exporters and export stability.
The Japanese Ministry of Health, Labour & Welfare established a Maximum Residue Limit of 0.2 ppm for ethoxyquin in crustaceans, including farmed shrimp, after committee approval and public notification; this replaced a previously applied lower default inspection threshold and followed an assessment by a food safety subcommittee that set an Accepted Daily Intake for ethoxyquin.

Formation of Special Purpose Vehicle to implement model solar smart micro grid, with funding and tariff framework for power sales.
Approval establishes a 100 percent subsidiary SPV of DMICDC to implement a Model Solar Power Project at Neemrana, capitalised by equity and debt released by the DMIC Trust to DMICDC with returns flowing back to the Trust. The SPV will develop an integrated solar PV and diesel generator smart micro grid, sell a portion of generation to a power trader at a tariff derived from competitive procurement, and supply identified industrial consumers under PPAs with tariffs fixed at signing.

Non-discriminatory market access agreed reciprocally to normalize trade and implement facilitation measures including border and procedural liberalization.
Commitment to establish normal trading relations with reciprocal Non-Discriminatory Market Access, implementing trade liberalization and facilitation measures at the land border such as seven-day operations at Wagah-Attari, enhanced operational hours, containerization of cargo, allowance of all tradeable items by land route, and liberalization of the business visa regime, supported by technical working groups (Customs, Railways, Banking, Standards, Energy) to devise modalities for implementation.

Merchanting trade guidelines: revised period extended and short term financing enabled with enhanced AD bank reporting requirements.
The revised guidelines define merchanting trade as resident purchase from non residents and resale to another non resident without goods entering domestic ports, note that such trade yields net foreign exchange inflows, extend the permissible merchanting trade period, enable short term financing for both export and import legs, and require Authorized Dealer banks to report outstanding merchanting trade half yearly for improved monitoring.

Exemption from stock holding limits for export consignments eases compliance and lowers exporters' transaction costs.
Stocks of edible oil, edible oilseeds and rice held for export are excluded from the stock holding limit under the Essential Commodities Act by the Removal of (Licensing requirements, Stock limits and Movement Restrictions) on Specified Foodstuffs Order, 2002 issued on 9 January 2014, a change intended to address exporters' compliance burdens and lower transaction costs.

Business-to-business cooperation strengthened by a tripartite MoU to boost information flow and urban transport collaboration.
Tripartite Memorandum of Understanding between EEPC India, CII and Kotra creates a platform to improve business-to-business contact and the flow of market and technical information, institutionalising promotional activities such as trade fairs, exhibitions and seminars to enhance commercial linkages. The MoU highlights sharing technical knowhow in infrastructure development and identifies the Urban Transport sector for potential cooperation.

Energy security: India urges technological collaboration and investment to bridge domestic deficits and strengthen supply partnerships.
India's operative priorities are to secure reliable hydrocarbon supplies, exploit domestic resources, and act as both a major market and a technology and investment partner; fiscal discipline and measures to contain the current account deficit underpin growth, while stranded power and fertilizer capacity from gas shortages highlight urgent needs to bridge the energy deficit and foster international cooperation and technological collaboration in the hydrocarbon sector.

Service tax clarity: seminars offer direct engagement with senior tax administrators to address compliance and procedural issues.
Announcement of a national seminar series to provide industry engagement with senior tax administrators for clarification on the service tax regime, covering interpretation of the definition of service, Cenvat Credit Rules, prosecution and arrest powers, negative list and declared services, place of provision, reverse charge mechanism, Point of Taxation rules, and practical handling of audits and investigations; events require prior registration, list invited government and private sector speakers, and target senior financial, legal and tax professionals.

Import duty adjustment on refined edible oils to preserve duty differential and protect domestic refining and farmers.
Increase of import duty on refined edible oils of vegetable origin from 7.5 percent to 10 percent has been approved to maintain a reasonable differential between import duty on crude and refined vegetable oils and to protect the domestic refining industry and domestic farmers.

Liberalization of FDI policy to attract foreign investment and boost manufacturing competitiveness through industrial corridor development and technology ties.
Policy emphasis on liberalization of the Foreign Direct Investment (FDI) policy to attract foreign investment and technology collaboration, complemented by a push for manufacturing recovery through industrial corridor development (notably the Delhi Mumbai Industrial Corridor), and highlighting export growth and a reduced trade deficit as indicators of improved external and fiscal resilience.

Industrial production index shows mixed sectoral growth with energy shortfall driven by natural gas decline.
Combined Index of Eight Core Industries (weight 37.90% in IIP) was 153.5 in November 2013, 1.7% higher than November 2012. Monthly and cumulative movements are reported across Coal, Crude Oil, Natural Gas, Petroleum Refinery Products, Fertilizers, Steel, Cement and Electricity. Natural Gas showed a sharp monthly and cumulative decline while Electricity, Steel and Cement recorded notable monthly and cumulative gains. Data are provisional with specified revisions and prorated reporting for RIL (SEZ).