GEOPOLITICAL DISRUPTIONS AND INLAND ECONOMIC CORRIDORS

The Government continuously monitors the impact of geopolitical developments on global maritime trade and logistics through institutional mechanisms involving the Ministry of Ports, Shipping and Waterways (MoPSW) and other concerned Ministries & Departments. An Inter-Ministerial Group (IMG), constituted under the Department of Commerce comprising of Ministry of External Affairs (MEA), Ministry of Ports, Shipping and Waterways (MoPS&W), Ministry of Civil Aviation, (MoCA), Ministry of Petroleum & Natural Gas (MoPNG), Reserve Bank of India (RBI), Central Board of Indirect Taxes and Customs (CBIC), Export Credit Guarantee Corporation of India (ECGC), Department for Promotion of Industry and Internal Trade (DPIIT), Agricultural & Processed Food Products Export Development Authority (APEDA), Department of Financial Services (DFS), and Container Corporation Of India (CONCOR), regularly reviews the evolving situation, assesses its implications for maritime trade and supply chains, and facilitates coordinated action to address emerging challenges.

The review mechanism covers issues relating to international shipping routes, movement of export-import cargo, port operations, logistics, freight and insurance costs, and the continuity of supply chains across sectors dependent on maritime trade. Based on these assessments, the Government has taken a number of coordinated measures to facilitate uninterrupted cargo movement and enhance supply-chain resilience, including operational support at major ports, waiver of ground rent and demurrage charges, facilitation of container evacuation through rail connectivity, trade facilitation measures, and initiatives to reduce logistics costs in coordination with the concerned Ministries, agencies and other stakeholders. Details of the measures taken are attached as Annexure.

Annexure

The measures taken by Government of India to facilitate uninterrupted cargo movement:

Directorate General of Foreign Trade (DGFT), under the Department of Commerce, extended the export obligation period for the Export Promotion Capital Goods (EPCG) and Advance Authorisation Schemes which were expiring between March 01, 2026 and May 31, 2026, up to August 31, 2026 covering 1,017 EPCG and 7,400 Advance Authorisations; restored RoDTEP rates; discharged export obligation of 21,370 EPCG and Advance authorisations through a special drive, thereby unlocking funds held in pending Bank Guarantees. Agricultural & Processed Food Products Export Development Authority (APEDA) ran a helpline for exporters; Government allowed gems-and-jewellery import and vaulting in SEZs/FTWZs.

Central Board of Indirect Taxes and Customs (CBIC) issued clarifications for returned and diverted cargo and extended fee waivers and cargo handling flexibility up to June 30, 2026; Reserve Bank of India (RBI)/ Department of Financial Services (DFS) continued the extended export credit period from 270 to 450 days till June 05, 2026 and introduced Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 for MSME liquidity.

Major Ports gave 100% waiver on ground rent and demurrage and 80% on reefer charges; Container Corporation of India (CONCOR) and Railways waived charges on containers held up due to disruptions and commenced double-stack services on the Dedicated Freight Corridor to facilitate the clearance of around 10,000 containers at the ports.

The Cabinet approved a sovereign guarantee of about US$ 1.5 billion for a domestic maritime insurance pool, reducing the cost of freight and insurance for exports.

Ministry of Petroleum & Natural Gas (MoPNG) activated an emergency cell and issued the LPG Control Order and the Natural Gas Supply Regulation Order.

The Department of Revenue reduced basic customs duty on 40 critical petrochemical products to zero till July 15, 2026.

This information was given by the Union Minister of Ports, Shipping and Waterways, Sarbananda Sonowal, in a written reply to the Lok Sabha.

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MI/Indu