Geopolitical Disruptions and Inland Economic Corridors

Key Highlights:

• An Inter-Ministerial Group (IMG), under the Department of Commerce, monitors geopolitical impacts on global maritime trade and logistics.
• The government has implemented coordinated measures to ensure uninterrupted cargo movement and enhance supply-chain resilience.
• Measures include extending export obligation periods for Export Promotion Capital Goods (EPCG) and Advance Authorisation Schemes.
• RoDTEP rates were restored, and a special drive discharged export obligations for over 21,000 authorisations.
• A sovereign guarantee of approximately US$ 1.5 billion was approved for a domestic maritime insurance pool to reduce freight and insurance costs.
• Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 was introduced for MSME liquidity, and export credit periods were extended.
• Major ports provided 100% waiver on ground rent and demurrage, while Container Corporation of India (CONCOR) commenced double-stack services on the Dedicated Freight Corridor.

Detailed Insights:

• The IMG comprises representatives from various ministries and departments, including MoPSW, MEA, RBI, and CBIC.
• This group regularly reviews international shipping routes, cargo movement, port operations, logistics, and associated costs.
• The Directorate General of Foreign Trade (DGFT) extended the export obligation period for schemes expiring between March and May 2026, up to August 31, 2026.
• Agricultural & Processed Food Products Export Development Authority (APEDA) launched a helpline for exporters.
• Central Board of Indirect Taxes and Customs (CBIC) issued clarifications for returned cargo and extended fee waivers until June 30, 2026.
• Reserve Bank of India (RBI) and Department of Financial Services (DFS) extended the export credit period from 270 to 450 days until June 05, 2026.
• Ministry of Petroleum & Natural Gas (MoPNG) activated an emergency cell and issued the LPG Control Order and Natural Gas Supply Regulation Order.
• The Department of Revenue reduced basic customs duty to zero on 40 critical petrochemical products until July 15, 2026.

Key Concepts Involved:

• Inter-Ministerial Group (IMG): A committee formed with members from multiple government ministries to address complex issues requiring coordinated action.
• Export Promotion Capital Goods (EPCG) Scheme: Allows import of capital goods at zero customs duty for manufacturing quality export products.
• Remission of Duties and Taxes on Exported Products (RoDTEP): A scheme to refund embedded central, state, and local duties/taxes that are not rebated under other schemes.
• Emergency Credit Line Guarantee Scheme (ECLGS): Provides 100% guarantee coverage by the government to banks for extending credit to businesses, especially MSMEs.