Recent Policy Changes Impacting Indian Manufacturing and Exports

 In a series of recent policy and regulatory interventions, the Government has introduced a set of measures aimed at strengthening export competitiveness, easing compliance, and enhancing domestic manufacturing resilience. Together, these measures spanning customs facilitation, import policy, sustainability regulation, and trade support reflect a calibrated policy response balancing trade facilitation, cost competitiveness, domestic industry protection, and sustainability alignment.

Set out below is a consolidated snapshot of key developments and their corresponding impact on industry:

Circular / Notification	Key Change	Impact on Industry
Circular No. 17/2026-Customs dated 31.03.2026 read with Notification Nos. 33 and 34 / 2026-Customs (N.T.) — Courier Exports and Imports Reform	Removal of the existing value cap of ₹10 lakh per consignment on courier exports, enabling shipment of high-value goods without diversion to conventional cargo channels. Introduction of a legally backed Return to Origin (RTO) mechanism for uncleared or unclaimed imports beyond 15 days. Simplified re-import procedure for returned or rejected goods including e-commerce exports, with a risk-based approach replacing consignment-wise verification, supported by a dedicated return module in the Express Cargo Clearance System.	Enables high-value e-commerce exports and removes a longstanding barrier for MSMEs, artisans and start-ups. The RTO mechanism eases congestion at courier terminals and reduces losses from uncleared imports. Simplified re-import procedures reduce logistics costs and reverse supply chain friction for exporters.
Circular No. 18/2026-Customs dated 01.04.2026 read with Notification No. 11/2026-Customs dated 31.12.2026 — One-Time Relief for SEZ Units: Concessional Duty on DTA Sales	A special one-time relief measure allowing eligible manufacturing units in Special Economic Zones to clear manufactured goods into the Domestic Tariff Area at concessional rates of customs duty, in response to global trade disruptions. Key eligibility conditions include: i. Commencement of production on or before 31.03.2025; ii. Minimum value addition of 20% over inputs; and iii. DTA sales under the scheme capped at 30% of the highest annual FOB export value in any of the three immediately preceding financial years. Certain sensitive sectors have been excluded to protect domestic industry. Assessment of Bills of Entry for such clearances will be conducted through the faceless assessment mechanism.	Provides temporary relief to SEZ manufacturers, till 31.03.2027, facing sluggish export demand due to geopolitical disruptions by enabling access to the domestic market at lower duty rates. The 30% cap and eligibility cut-off preserve the export-first character of SEZs. The faceless assessment mechanism enhances transparency and reduces interface with authorities. DTA manufacturers in the same product segments should assess the competitive implications.
DGFT Notification No. 65/2025-26 dated 19.03.2026 read with DGFT Public Notice No. 51/2025-26 dated 06.03.2026 — RELIEF Scheme and Export Obligation Extension	The Government has approved the Resilience and Logistics Intervention for Export Facilitation (RELIEF) scheme with an outlay of ₹497 crore under the Export Promotion Mission, implemented through ECGC. The scheme has three components. Component I provides enhanced ECGC credit support for insured shipments dispatched between 14th February and 15th March 2026, protecting exporters against war-related and political risks with premiums capped at pre-disruption levels. Component II encourages ECGC coverage for upcoming shipments with bills of lading issued between 16th March and 15th June 2026, with ECGC providing up to 95% loss coverage. Component III provides partial reimbursement of up to 50% of extraordinary freight and insurance costs for MSME exporters not covered under ECGC insurance, for shipments dispatched between 14th February and 15th March 2026, subject to a ceiling of ₹50 lakh per exporter. Separately, export obligation periods under Advance Authorisations and EPCG authorisations expiring between 1st March and 31st May 2026 have been automatically extended to 31st August 2026, without any composition fee or separate application. The scheme covers consignments destined for or trans-shipped through UAE, Saudi Arabia, Kuwait, Qatar, Oman, Bahrain, Iraq, Iran, Israel and Yemen.	Provides meaningful working capital relief to exporters facing extraordinary freight escalation, heightened insurance premiums and war-risk surcharges. MSME exporters previously outside the ECGC framework receive direct reimbursement support for the first time. The automatic EO extension removes the risk of deemed default and associated penalties for exporters facing logistics disruptions, without any procedural burden. Exporters with exposure to the specified geographies should evaluate their eligibility under each component and ensure documentation is in order.
Notification No. 12/2026-Customs dated 1st April 2026 — Full Customs Duty Exemption on Petrochemicals and Polymers	Full customs duty exemption granted on 40 critical petrochemical feedstocks, intermediates and polymers in response to supply chain disruptions arising from the West Asia conflict and closure of the Strait of Hormuz for the period from 02.04.2026 to 30.06.2026. The exempted products include basic chemicals such as methanol, acetic acid, toluene, styrene, MEG and phenol; monomers and intermediates such as vinyl chloride monomer, vinyl acetate monomer and PTA; and polymers including polyethylene, polypropylene, polystyrene, PVC, PET chips, ABS, polycarbonates and epoxy resins. A separate Notification No. 13/2026-Customs also exempts ammonium nitrate from the Agriculture Infrastructure and Development Cess for the same period.	Reduces landed cost of critical raw materials for a wide range of downstream sectors including plastics, packaging, textiles, pharmaceuticals, chemicals and automotive components. Given the temporary nature of the exemption, businesses should plan procurement and inventory strategies accordingly. The measure partially offsets the price escalation driven by global supply disruptions, though it does not address availability constraints arising from route diversions.
DGFT Notification No. 02/2026-27 dated 01.04.2026 — Restriction on Import of Jewellery under CTH 7113	Import policy for all items under Customs Tariff Heading 7113, covering articles of gold, silver and platinum jewellery, revised from 'Free' to 'Restricted' with immediate effect. Importers now require a licence or permission from DGFT for such imports. The restrictions apply irrespective of prior contracts, advance payments, irrevocable letters of credit or shipment status, and no transitional arrangements are available. The measure seeks to curb FTA misuse, particularly under the India–ASEAN FTA, involving routing of precious metal jewellery through non-producing jurisdictions. Imports by 100% Export Oriented Units and SEZ units are exempt from the restriction. Imports under gems and jewellery export-linked schemes under the Foreign Trade Policy also continue to be permitted.	Tightens oversight over jewellery imports and closes the FTA misuse route, particularly for silver and gold jewellery routed through low-duty FTA partners. Importers of finished or semi-finished jewellery for the domestic market will now require prior DGFT authorisation, adding a compliance layer. EOU and SEZ units engaged in jewellery exports remain unaffected. Businesses with existing contracts or open letters of credit for CTH 7113 goods should assess their exposure given the absence of transitional relief.

The above measures collectively reflect a multi-pronged policy approach responding to both immediate geopolitical disruptions and longer-term structural objectives around trade facilitation, domestic manufacturing competitiveness and sustainability. While several of the measures are time-bound and targeted, they carry implications for working capital planning, customs compliance, supply chain strategy and contractual commitments