Strong start to year but deregulation holds key to competitiveness

The new year has begun with a flurry of trade-related announcements across ministries, offering a snapshot of the government’s economic priorities and its reading of current global and domestic conditions.

- TNC Rajagopalan

The Director General of Foreign Trade (DGFT) issued three trade notices, laying down guidelines for collateral support for export credit, interest subvention for preand post-shipment finance, and market access assistance under the Export Promotion Mission. It also standardised formats and permissions for export oriented units (EOUs). These measures aim to ease procedures, lower transaction costs, and improve access to finance for exporters.

The ministry of ports, shipping and waterways added to the momentum by notifying operational guidelines for two flagship shipbuilding initiatives — the Shipbuilding Financial Assistance Scheme and the Ship building Development Scheme. These measures seek to strengthen domestic shipbuilding capacity, reduce dependence on foreign yards, and enhance India’s global competitiveness in a strategically important sector.