India trade update October 2025: Regulatory reforms and FTA progress

India trade update October 2025: Regulatory reforms and FTA progress

Photographic portrait of Suresh Nair
Suresh Nair

Indirect Tax Partner, EY India

5 minute read 28 Nov 2025
Related topics
Tax
Global trade

Regulatory simplification and proactive FTA   initiatives drive India’s efforts to boost exports and reinforce its role in global trade.

In brief

  • India is accelerating trade momentum with streamlined customs procedures, digital compliance platforms, and targeted relaxation of quality-control requirements for select products.
  • Strategic FTAs and accelerated negotiations with key global partners would open new export markets and attract sustained foreign investment.
  • These reforms and partnerships enhance competitiveness, lower trade costs and solidify India’s position in resilient and evolving global supply chains.

In October 2025, India reinforced its global trade momentum, marked by sustained export resilience across key sectors, regulatory streamlining and strategic trade partnerships. Domestic reforms focused on compliance simplification and quality enforcement, while international strides, led by the operationalization of the India-European Free Trade Association (EFTA) Trade and Economic Partnership Agreement and accelerated Free Trade Association (FTA) talks , enhanced market access and investor confidence. These developments strengthen India’s supply chain resilience, reduce transaction costs, and position the country such that it can capture a larger share of global value chains amid shifting trade alliances and protectionist trends.

Domestic regulatory updates

Customs 

October marked a significant push towards simplifying trade compliance, with the Central Board of Indirect Taxes and Customs (CBIC) consolidating 31 disparate customs duty notifications into a single framework. This master notification merges exemptions and concessional rates from notifications dating back to 1957, effective 1 November 2025. The move aims to reduce administrative burdens for importers and exporters, enhancing ease of doing business. 

Additionally, advancing post-clearance flexibility, the CBIC notified the Customs (Voluntary Revision of Entries Post Clearance) Regulations, effective 1 November 2025. This regulation enables importers, exporters and customs brokers to voluntarily amend entries made in bills of entry, shipping bills, or bills of export after goods clearance. This aligns with global best practices, fostering trust-based trade and reducing litigation.

Directorate General of Foreign Trade (DGFT) 

The DGFT has also issued key amendments to import and export policies, aligning with broader fiscal reforms. A public notice extended the last date for filing annual returns for FY2023-24 to 30 November 2025, with a composition fee of INR10,000, easing compliance for exporters under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme. Additionally, DGFT announced a pilot launch of Bharat Aayat Niryat Lab Setu, a digital single-window platform to integrate testing and inspection agencies to enable faster, paperless certification of export and import consignments.

Bureau of Indian Standards (BIS)

BIS focused on quality control enforcement and standard withdrawals, rescinding quality control orders for nine products including acrylonitrile, maleic anhydride and styrene to reduce oversight in public interest. 

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International trade landscape 

India advanced its FTA agenda amid global supply chain shifts: 

  • The India-EFTA FTA took effect on 1 October 2025, unlocking substantial tariff reductions on a wide range of goods and significant investment commitments over the coming years. This pact with Switzerland, Norway, Iceland and Liechtenstein aims to boost access to European markets for pharmaceuticals and IT services.
  • EU-India relations gained momentum with the European Council approving a new strategic agenda, paving the way for an FTA by year-end, focusing on market access and barrier removal. 
  • Negotiations intensified with the UK (joint statement on 9 October 2025 emphasizing bilateral trade growth), EU, US, Peru and Chile.

These developments position India as a proactive player in reshaping global trade amid geopolitical uncertainties.

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Summary

In October 2025, India bolstered its trade ecosystem through targeted policy reforms and strategic partnerships. Key measures included consolidation of customs notifications, rollout of digital certification platforms and extended compliance deadlines to support exporters. Select quality-control norms were also eased. On the international front, India implemented its landmark trade agreement with the EFTA countries and fast-tracked  negotiations with major economies, notably the European Union, to secure broader and deeper market access. These reforms and agreements would help in reducing transaction costs, enhancing investor confidence, and establishing India as a more resilient and competitive node in global supply chains amid shifting geopolitical and economic landscapes.

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    About this article

    Photographic portrait of Suresh Nair
    Suresh Nair
    Indirect Tax Partner, EY India
    Partner with the Indirect Tax Practice and global trade, also works closely with the life sciences, chemical, consumer and retail sectors. Enjoys reading and cricket.
    Related topics
    Tax
    Global trade

    EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.