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Kolkata’s Industrial and Warehousing Stock Crosses 24 Million Sq Ft, Strengthening Eastern India’s Logistics Hub

Kolkata’s industrial and warehousing stock has surpassed 24 million sq ft, reinforcing the city’s growing position as a major logistics and distribution hub for Eastern and Northeastern India.
The expansion reflects rising demand for modern logistics infrastructure from third-party logistics (3PL) providers, e-commerce companies, manufacturers and other supply-chain-intensive businesses. Growing connectivity with key consumption centres is also encouraging the development of industrial and warehousing facilities around the city.

Key Highlights

  • 24+ million sq ft: Kolkata’s industrial and warehousing stock has crossed this milestone.
  • 3.8 million sq ft: Industrial and logistics leasing recorded in Kolkata during the first nine months of 2025.
  • 30+ million sq ft: Warehousing absorption recorded across India during H2 2025, according to CBRE.
  • Major demand drivers: 3PL, e-commerce, engineering and manufacturing companies.
  • Strategic advantage: Kolkata serves as an important gateway to West Bengal, Eastern India and the Northeast.
  • Logistics impact: Growing warehousing capacity can support regional distribution, inventory management and faster cargo movement.

Kolkata’s Warehousing Market Gains Momentum

Kolkata’s strategic location gives it an important role in India’s eastern logistics network. The city provides access to major consumption and industrial markets while serving as a gateway for cargo moving toward Northeastern states and neighbouring markets.
The growing presence of 3PL operators and e-commerce businesses is increasing demand for strategically located warehouses capable of supporting faster order fulfilment, inventory consolidation and regional distribution.
Manufacturing and engineering companies are also contributing to demand, creating requirements for industrial facilities that can support production, storage and movement of goods.

Kolkata’s Leasing Activity Signals Strong Demand

According to CBRE, Kolkata recorded approximately 3.8 million sq ft of industrial and logistics leasing during the first nine months of 2025, highlighting the city’s contribution to India’s broader logistics real estate market.

Market Indicator

Volume

Kolkata industrial & warehousing stock

24+ million sq ft

Kolkata industrial & logistics leasing, 9M 2025

3.8 million sq ft

India warehousing absorption, H2 2025

30+ million sq ft

Key demand sectors

3PL, e-commerce, manufacturing & engineering

Why Kolkata Matters for Eastern India’s Supply Chain

Kolkata’s logistics importance extends beyond the city’s immediate market.
Its location makes it a natural distribution point for cargo destined for West Bengal, Odisha, Bihar, Jharkhand and the Northeastern region. As businesses increasingly seek faster delivery and regional inventory networks, demand for strategically positioned warehousing facilities is likely to remain important.
Modern warehouses can also improve supply-chain performance by enabling:
  • Faster regional order fulfilment
  • Better inventory positioning
  • Consolidation and deconsolidation of cargo
  • Improved last-mile distribution
  • Greater integration between road transport and warehousing
  • More efficient movement of goods across eastern and northeastern markets

The Bigger Picture

India’s industrial and logistics real estate market continues to benefit from structural changes in supply chains. Companies are increasingly investing in regional distribution centres, fulfilment facilities and modern warehouses to reduce delivery times and improve inventory efficiency.
For Kolkata, the combination of growing industrial and warehousing stock, strong leasing activity and its strategic regional position could further strengthen its role in India’s logistics network.
As more modern facilities come online, the city could attract additional logistics operators, manufacturers, e-commerce businesses and supply-chain investments.

What Does the Growth Mean for Logistics?

For freight forwarders, 3PL companies, manufacturers, e-commerce operators and transport providers, the expansion of Kolkata’s warehousing ecosystem could create new opportunities across storage, distribution and transportation.
A larger and more modern warehouse base can support more efficient cargo flows while enabling businesses to position inventory closer to regional demand centres.
For the logistics industry, this means potential growth in warehousing, road freight, freight forwarding, distribution, inventory management and supply-chain technology.

Frequently Asked Questions

What is the size of Kolkata’s industrial and warehousing stock?
Kolkata’s industrial and warehousing stock has surpassed 24 million sq ft.
Kolkata recorded around 3.8 million sq ft of industrial and logistics leasing during the first nine months of 2025, according to CBRE.
Major demand drivers include 3PL providers, e-commerce companies, manufacturers, engineering companies and other supply-chain-intensive businesses.
Kolkata is strategically positioned as a gateway to Eastern and Northeastern India, providing access to major regional consumption and industrial markets.
Increasing warehousing capacity could support regional distribution, faster cargo movement, inventory optimisation, e-commerce fulfilment and greater demand for transportation and logistics services.
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Niphad Dry Port to Become Major Multi-Modal Logistics Hub, Boosting Nashik’s Export Potential

niphad-port

NASHIK: The proposed Niphad Multi-Modal Logistics Park (MMLP) is set to play a significant role in transforming Nashik into a stronger logistics and export hub, with improved connectivity for agricultural producers, manufacturers, exporters and domestic cargo operators.

The development of the proposed Niphad Dry Port was discussed during a meeting between Nashik District Collector Ayush Prasad and JNPT Vice Chairman Ravish Kumar Singh at the Nashik Collector’s Office.

The proposed logistics park is envisioned as more than an Export-Import (EXIM) cargo facility. Authorities are planning an integrated logistics hub capable of handling both domestic and international cargo, supported by road, rail, air and warehousing infrastructure.

Niphad MMLP to Support EXIM and Domestic Cargo

A key focus of the project is to create an integrated logistics ecosystem that can improve cargo movement, storage and distribution across Nashik district.

The proposed dry port is expected to provide exporters and industries with better access to transportation and logistics services while reducing dependence on fragmented logistics operations.

Niphad MMLP to Support EXIM and Domestic Cargo

  • Multi-modal logistics hub: Designed to integrate road, rail, warehousing and cargo-handling infrastructure.
  • EXIM cargo gateway: Expected to support exporters and importers in Nashik and surrounding industrial areas.
  • Domestic logistics: The facility will also handle domestic cargo, distribution and supply-chain activities.
  • Agricultural export support: Proposed connectivity with Lasalgaon and Pimpalgaon Baswant APMCs could streamline movement of agricultural commodities.
  • Storage infrastructure: Integration with the Centre's grain storage initiative could strengthen agricultural storage and food-supply chains.
  • JNPT collaboration: JNPT is working with the district administration to facilitate export-related processes for local industries.
  • Strong connectivity: The project will benefit from access to major highways, the Samruddhi Mahamarg, Nashik Ring Road, Ozar Airport and the railway network.
  • Employment potential: Improved logistics infrastructure could generate new opportunities in transportation, warehousing, distribution and related services.

Why Niphad Is Strategically Important for Nashik Logistics

Niphad’s location gives the proposed logistics park access to multiple transportation corridors.

The project is expected to leverage connectivity through the Nashik–Chennai Highway, Nashik Ring Road, Samruddhi Mahamarg, Ozar Airport and the railway network.

This combination could allow cargo to move more efficiently between production centres, logistics facilities, ports and domestic consumption markets.

Connectivity-network

Agricultural Supply Chain Could Be a Major Beneficiary

Agriculture is expected to be one of the major beneficiaries of the proposed logistics infrastructure.

The District Collector has proposed connecting the Lasalgaon and Pimpalgaon Baswant APMCs with the Niphad Dry Port. Other agricultural market committees in Nashik district could potentially be integrated during subsequent phases.

The proposed linkage could create a more organised supply chain between farms, agricultural markets, storage facilities, the dry port and export gateways.

This could be particularly important for agricultural commodities that require efficient transportation, storage and market access.

Potential Agricultural Logistics Flow

Supply Chain Stage

Potential Benefit

Farmers & Producers

Better access to organised logistics

APMCs

Direct connectivity with the dry port

Warehousing

Improved storage and inventory management

Niphad Dry Port

Cargo consolidation and multimodal movement

JNPT

Access to international shipping networks

Export Markets

Improved connectivity and market reach

Grain Storage Integration Could Strengthen the Food Supply Chain

Another proposal discussed during the meeting was linking the Niphad Dry Port with the Centre’s grain storage initiative.

Such integration could help create a stronger connection between agricultural production, storage, transportation and distribution.

For farmers and traders, better storage and logistics infrastructure could help reduce supply-chain inefficiencies and improve access to wider domestic and export markets.

JNPT Steps Up Support for Nashik Exporters

JNPT is also strengthening its engagement with Nashik’s industrial and export ecosystem.

According to the district administration, the Economic Development Cell of Nashik district has been connected with JNPT’s main transport office. The objective is to simplify export-related processes for local industries and exporters.

JNPT will also participate as a key stakeholder in the District Export Promotion Committee meeting scheduled for August 4, 2026.

This collaboration could help local businesses better understand port procedures, export logistics and opportunities to access international markets.

Expected Impact on Nashik's Logistics Ecosystem

The proposed Niphad MMLP could have a broader impact beyond cargo handling.

Area

Expected Impact

Agriculture

Improved movement and export of agricultural commodities

Manufacturing

Better access to logistics and distribution networks

Exports

Easier access to port-based EXIM infrastructure

Warehousing

Increased demand for modern storage facilities

Transportation

Greater requirement for road and rail cargo movement

Employment

New opportunities across logistics and allied sectors

Trade

Wider access to domestic and international markets

Supply Chains

More integrated multimodal cargo movement

What the Niphad Dry Port Could Mean for Logistics in Nashik

niphad-dry-port

What the Niphad Dry Port Could Mean for Nashik’s Future

The proposed Niphad Multi-Modal Logistics Park represents an important step toward building a more integrated logistics ecosystem in Nashik district.

With road and rail connectivity, access to Ozar Airport, proximity to agricultural production centres and collaboration with JNPT, the project could strengthen the movement of both domestic and EXIM cargo.

The proposed integration of APMCs and grain-storage infrastructure could further enhance Nashik’s agricultural supply chain, while improved export facilitation could support local manufacturers and businesses.

If implemented as planned, the Niphad Dry Port could position Nashik as an important multimodal logistics and export hub in Maharashtra, connecting the district’s agricultural and industrial economy with national supply chains and international markets.

Key Takeaways

  • Niphad MMLP is being developed as an integrated domestic and EXIM logistics hub.
  • The project is expected to combine road, rail, warehousing and cargo-handling infrastructure.
  • Connectivity with Lasalgaon and Pimpalgaon Baswant APMCs could strengthen agricultural exports.
  • Integration with the Centre's grain storage initiative could improve the agricultural supply chain.
  • JNPT's collaboration could help simplify export processes for Nashik-based industries.
  • The project could increase demand for transportation, warehousing, distribution and logistics services.
  • Niphad could emerge as a strategic logistics gateway connecting Nashik with national and international markets.

Frequently Asked Questions

What is the Niphad Dry Port?

The Niphad Dry Port is part of the proposed Multi-Modal Logistics Park (MMLP) in Nashik district, Maharashtra. It is planned as an integrated facility for handling both domestic and EXIM cargo.

The logistics park is expected to improve cargo transportation, warehousing, distribution and export connectivity while supporting agricultural and industrial supply chains.

The proposed logistics hub will benefit from connectivity through the Nashik–Chennai Highway, Nashik Ring Road, Samruddhi Mahamarg, railway network and Ozar Airport.

Proposed connectivity with Lasalgaon and Pimpalgaon Baswant APMCs could improve the movement of agricultural commodities from market yards to storage facilities, the dry port and export gateways.

JNPT is collaborating with the Nashik district administration and has connected the district’s Economic Development Cell with its main transport office to help facilitate export-related processes for local industries and exporters.

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DPA Kandla Cargo Handling Surges 21.03% to 62.86 MMT in First 131 Days of FY 2026-27

Deendayal Port Authority (DPA), Kandla, has started FY 2026-27 on a strong note, recording 21.03% year-on-year growth in cargo handling during the first 131 days of the financial year.
The port handled 62.86 million metric tonnes (MMT) of cargo between April 1 and August 9, 2026, compared with 51.94 MMT during the corresponding period of the previous year. The increase represents an additional 10.92 MMT of cargo, highlighting the continued strength of cargo movement through one of India’s major maritime gateways.
The latest performance comes after DPA Kandla handled a record 160.11 MMT in FY 2025-26, the highest cargo volume recorded in the history of India’s major ports, according to the port’s official release.

Key Highlights

  • 62.86 MMT of cargo handled up to August 9, 2026
  • 21.03% YoY growth compared with the same period last year
  • 51.94 MMT handled during the corresponding period in 2025
  • 10.92 MMT additional cargo handled year-on-year
  • Cargo handled over the first 131 days of FY 2026-27
  • DPA handled a record 160.11 MMT in FY 2025-26

DPA Kandla Cargo Growth at a Glance

Indicator

FY 2025-26 Comparable Period

FY 2026-27

Change

Cargo handled

51.94 MMT

62.86 MMT

+10.92 MMT

Year-on-year growth

—

21.03%

Strong increase

Period covered

April 1–August 9, 2025

April 1–August 9, 2026

131 days

Cargo Handling Growth

51.94 MMT → 62.86 MMT
+10.92 MMT | +21.03% YoY
The increase indicates that DPA Kandla is maintaining a strong cargo throughput trajectory early in the new financial year.

Why the Kandla Numbers Matter

DPA Kandla is strategically positioned on India’s western coast and serves cargo flows connected to important industrial, commercial and consumption centres across the hinterland.
For the logistics industry, higher cargo throughput can translate into increased activity across the wider supply chain, including road transportation, rail evacuation, warehousing, customs clearance, freight forwarding, cargo handling and distribution.
The port’s performance is particularly significant following its record FY 2025-26 result. DPA reported that cargo volumes reached 160.11 MMT, with growth across several important categories, including fertilisers, liquid cargo, containers, iron and steel and clay.

What Is Driving DPA Kandla's Growth?

The latest numbers point to several important factors supporting the port’s cargo momentum:
1. Strong Cargo Throughput
Handling nearly 63 MMT in the first 131 days demonstrates sustained cargo movement through the port and its associated logistics ecosystem.
2. Expanding Multimodal Connectivity
Efficient movement of cargo beyond the port gate is critical to maintaining throughput. Road and rail connectivity with the hinterland enables cargo to move between ports, industrial clusters, warehouses and consumption centres.
3. Growing Container and Other Cargo Segments
DPA’s FY 2025-26 performance showed particularly strong growth in container cargo, which increased by 54%, while fertiliser cargo grew by around 32% and liquid cargo by 23.4%.
4. Operational Efficiency
Higher cargo volumes require coordinated vessel operations, berth management, cargo handling, documentation, customs processes and evacuation. Continued operational efficiency therefore remains critical as throughput increases.

What This Means for the Logistics Industry

The growth at DPA Kandla has implications beyond the port itself.
For freight forwarders and logistics companies, higher cargo volumes can create additional demand for transportation planning, shipment coordination, documentation, customs clearance and cargo visibility.
For exporters and importers, sustained port throughput can support greater routing flexibility and strengthen the role of Kandla as a gateway for western and northern Indian trade.
For transporters and warehouse operators, higher cargo movement can generate additional requirements for first- and last-mile transportation, storage, cargo consolidation and distribution.

What This Means for India’s Logistics Sector

DPA Kandla’s latest performance reinforces a broader trend in India’s maritime sector: major ports are increasingly becoming critical engines of trade and logistics growth rather than simply cargo-handling points.
The port’s previous milestone of 160.11 MMT in FY 2025-26 and its latest 21.03% YoY growth suggest that cargo momentum remains strong.
As India’s EXIM volumes expand, the ability of ports to combine capacity, efficient cargo handling, digital processes and reliable hinterland connectivity will become increasingly important.
For freight forwarders, shipping lines, customs brokers and transport operators, the growth at Kandla represents an expanding logistics opportunity — particularly across western and northern India.

Kandla’s Cargo Growth Signals Stronger Momentum for India’s Logistics Sector

DPA Kandla’s 62.86 MMT cargo handling in the first 131 days of FY 2026-27, representing 21.03% YoY growth, signals strong momentum in India’s port-led logistics activity.
The additional 10.92 MMT handled compared with the previous year highlights rising cargo flows through the gateway. Combined with DPA’s record 160.11 MMT performance in FY 2025-26, the latest figures strengthen Kandla’s position as an important gateway for India’s maritime trade.
For the logistics sector, the growth could support opportunities across ,freight forwarding, transportation, warehousing, customs clearance, cargo handling and supply-chain management.

Frequently Asked Questions

What is the latest cargo volume handled by DPA Kandla?
DPA Kandla handled 62.86 million metric tonnes (MMT) of cargo between April 1 and August 9, 2026.
The port recorded 21.03% year-on-year growth during the period.
DPA handled 10.92 MMT more cargo than during the corresponding period of the previous year.
DPA Kandla handled a record 160.11 MMT during FY 2025-26.
Kandla is an important maritime gateway serving cargo movements connected with western and northern Indian markets. Its cargo growth can influence demand for transportation, warehousing, customs clearance, freight forwarding and other logistics services.
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India Enters FY27 With Resilient Exports and Strong FDI Inflows Despite Wider Trade Deficit

India has started FY2026-27 with a resilient external sector, supported by strong merchandise exports, robust services exports and a renewed flow of foreign direct investment (FDI), even as rising imports continue to widen the merchandise trade deficit.
The Reserve Bank of India (RBI) has highlighted the strength of India’s external position amid elevated crude oil prices, strong domestic demand and continuing global trade uncertainties. While higher imports are putting pressure on the trade balance, strong services exports, remittances and foreign capital inflows are providing important support to the economy.
  • India’s merchandise exports reached US$129.3 billion in Q1 FY27, registering 15.9% year-on-year growth.
  • Merchandise imports rose to US$216.2 billion, up 19.9% year-on-year.
  • The merchandise trade deficit widened as imports grew faster than exports.
  • Gross FDI inflows increased to US$30.7 billion during April–June 2026, compared with US$26.7 billion a year earlier.
  • Net FDI inflows rose to US$7.9 billion in Q1 FY27 from US$4.8 billion in Q1 FY26.
  • Strong services exports and private remittances continue to provide a buffer against the merchandise trade gap.
  • India’s foreign exchange reserves remain comfortable, providing protection against external shocks.

India’s Exports Maintain Momentum in FY27

India’s merchandise exports showed strong momentum during the first quarter of FY2026-27.
According to RBI data, merchandise exports increased to US$129.3 billion in Q1 FY27, compared with US$111.6 billion in the corresponding period of the previous year. This represents a 15.9% year-on-year increase.
The growth was supported by sectors including petroleum products, engineering goods and electronic goods, highlighting the increasing diversification of India’s export base.
This resilience is particularly significant as global trade remains exposed to geopolitical tensions, energy-price volatility and changes in trade policy.

Imports Grow Faster, Widening the Trade Deficit

While exports performed strongly, India’s imports expanded at an even faster pace.

Indicator

Q1 FY26

Q1 FY27

Change

Merchandise Exports

US$111.6 bn

US$129.3 bn

0.159

Merchandise Imports

US$180.3 bn

US$216.2 bn

0.199

Merchandise Trade Deficit

US$68.7 bn

US$86.6 bn

↑ US$17.9 bn

The increase in imports reflects strong domestic demand as well as higher purchases of key commodities and manufactured products. Crude oil, electronic goods and gold were among the important contributors to the wider import bill.
For India’s logistics industry, this combination of rising exports and imports points to continued demand for ocean freight, air cargo, customs clearance, warehousing, transportation and multimodal logistics services.

Services Exports Provide a Critical Cushion

India’s external sector is not dependent on merchandise trade alone.
The country’s growing services economy continues to offset part of the merchandise trade deficit. Software services, business services and Global Capability Centres (GCCs) remain important contributors to India’s services exports.
During April–May 2026, India’s services trade surplus increased to US$34.3 billion, compared with US31.7During April–May 2026, India’s services trade surplus increased to US$34.3 billion.
This combination of services earnings and remittance inflows helps reduce pressure on India’s current account despite the widening merchandise trade gap.

FDI Inflows Signal Continued Investor Confidence

Foreign investment is another major strength in India’s external sector.
Gross FDI inflows increased 14.8% year-on-year during April–June 2026, reaching US$30.7 billion, compared with US$26.7 billion during the same period of the previous year.
More importantly, net FDI inflows increased to US$7.9 billion, up from US$4.8 billion in Q1 FY26.
The recovery in foreign investment indicates that global investors continue to view India as an important destination for manufacturing, technology, infrastructure and services investment.

India’s External Sector: What Is Supporting It?

India’s external resilience can be understood through four major pillars:
At the same time, higher crude oil prices and import demand remain important risks to India’s trade balance.

What Does This Mean for the Logistics Industry?

India’s export and import growth has direct implications for the country’s logistics ecosystem.
1. Higher Container Demand
Growing merchandise exports can increase demand for containerised ocean freight, particularly across engineering, electronics and manufactured goods.
2. Rising Air Cargo Opportunities
High-value and time-sensitive products such as electronics, components and technology products can support continued growth in air freight.
3. Greater Demand for Customs Automation
As trade volumes increase, exporters and importers need faster documentation, customs filing and compliance processes.
4. Expansion of Warehousing
Growing manufacturing and import activity can increase demand for regional distribution centres, bonded warehouses and integrated logistics facilities.
5. Stronger Multimodal Logistics
India’s expanding manufacturing and export base is likely to increase demand for coordinated road, rail, port and shipping connectivity.
6. Greater Need for Digital Freight Management
Higher cargo volumes can make manual freight processes increasingly difficult to manage. Freight forwarders and logistics companies can benefit from automation across quotations, bookings, documentation, tracking, invoicing and financial reconciliation.

Q1 FY27 External Sector Snapshot

Area

Q1 FY27 Performance

Logistics Significance

Merchandise exports

US$129.3 bn

Higher outbound cargo demand

Merchandise imports

US$216.2 bn

Increased inbound cargo movement

Trade deficit

US$86.6 bn

Higher import dependence

Gross FDI

US$30.7 bn

Potential manufacturing & infrastructure investment

Net FDI

US$7.9 bn

Stronger external financing

Services surplus

US$52.2 bn

Supports external-sector stability

Net transfers

US$41.4 bn

Additional external-sector support

The RBI’s latest balance-of-payments data also show that the merchandise trade deficit widened to US$85.7 billion in Q1 FY27, while the services surplus increased to “US$52.2 billion and net transfers rose to US$41.4 billion.

The Bigger Picture for India's Trade and Logistics Sector

India’s external sector is entering FY27 with both opportunities and challenges.
On one side, stronger exports, rising services earnings and increased FDI indicate that India’s trade and investment ecosystem remains resilient. On the other, faster import growth and elevated energy costs could continue to put pressure on the merchandise trade balance.
The RBI expects healthy services exports, inward remittances and trade agreements—including the India-UK trade deal—to help mitigate some of the risks facing India’s current account.
For logistics companies, the message is clear: India’s trade volumes are expanding, but managing that growth efficiently will require greater visibility, automation and digital coordination across the supply chain.

What to Watch in FY27

The following factors will be important for India’s logistics and trade outlook during FY27:
  • Global crude oil prices
  • India's merchandise export growth
  • Import demand for electronics, energy and industrial goods
  • Global shipping and freight rates
  • India-UK trade developments
  • Foreign investment trends
  • Global trade-policy changes
  • Container availability and port congestion
  • Growth in manufacturing and electronics exports
  • Demand for multimodal transportation

Conclusion

India’s entry into FY27 presents a mixed but fundamentally resilient external-sector picture. Merchandise imports are putting pressure on the trade balance, but strong exports, expanding services earnings, rising remittances and renewed FDI inflows are helping maintain overall stability.
For India’s logistics industry, continued growth in trade and investment could create new opportunities across freight forwarding, container shipping, air cargo, warehousing, customs, transportation and digital supply-chain management.
As global trade becomes more volatile and cargo volumes increase, logistics companies that combine operational efficiency, real-time visibility and automation will be better positioned to capture the next phase of India’s trade growth.

Frequently Asked Questions

Is India's trade deficit increasing in FY27?
Yes. India’s merchandise trade deficit widened in Q1 FY27 as imports grew faster than exports. RBI data put the Q1 merchandise trade deficit at around US$86 billion.
Yes. Merchandise exports increased 15.9% year-on-year to US$129.3 billion in Q1 FY27.
Gross FDI inflows reached US$30.7 billion during April–June 2026, while net FDI inflows increased to US$7.9 billion.
Imports are growing faster than exports. Higher demand for crude oil, electronics, gold and other imported goods has contributed to the increase in India’s merchandise import bill.
Higher exports can increase demand for container shipping, air cargo, trucking, warehousing, customs clearance, freight forwarding and multimodal transportation services.
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HMM Launches India–East Africa Container Service in September 2026

HMM Strengthens India–East Africa Trade Connectivity With New Container Service

South Korean container carrier HMM is expanding its presence in the India–Africa trade corridor with a new Gulf-India-East Africa (GIEA) container service, scheduled to begin in the fourth week of September 2026.
The new weekly service will connect India’s major container gateways Nhava Sheva and Mundra with Dar es Salaam in Tanzania and Mombasa in Kenya, giving exporters and importers a more direct maritime connection between the Indian subcontinent and East Africa.
The launch comes as trade between India and African markets continues to create demand for more reliable shipping schedules, wider port connectivity and efficient regional feeder networks.

Key Highlights

  • Service: Gulf-India-East Africa (GIEA)
  • Expected launch: Fourth week of September 2026
  • Indian ports: Nhava Sheva and Mundra
  • East African ports: Dar es Salaam and Mombasa
  • Frequency: Weekly
  • Fleet: Five container vessels
  • Vessel capacity: Approximately 2,800 TEU each
  • Operators: HMM, COSCO Shipping, Pacific International Lines (PIL) and Interasia Lines
  • Service rotation: Nhava Sheva → Mundra → Dar es Salaam → Mombasa
  • Strategic objective: Expand HMM's African network and strengthen India–East Africa connectivity

HMM's New India–East Africa Shipping Route

The initial port rotation is designed to link India’s major western container gateways with two important East African maritime hubs.
Trade Route
This network can provide businesses with an additional shipping option for cargo moving between India and East African markets.

Why the GIEA Service Matters for Indian Exporters1

For Indian exporters, the new service could strengthen access to East African markets by providing another scheduled container connection to Kenya and Tanzania.
Potentially important cargo segments include:
  • Pharmaceuticals and healthcare products
  • Engineering goods and machinery
  • Chemicals and petrochemicals
  • Textiles and garments
  • Food and agricultural products
  • Consumer goods
  • Automotive components
  • Industrial raw materials
The service may also benefit importers sourcing products and raw materials from East Africa for Indian manufacturing and distribution markets.

Kenya and Tanzania Gain Greater Connectivity With India

The inclusion of Mombasa and Dar es Salaam is strategically significant because both ports serve as important gateways for East African trade.
Improving connections between Indian ports and these gateways can support broader logistics networks extending beyond the ports themselves into inland markets.
India Ports → East African Gateway Ports → Inland Distribution Networks
This makes the new service relevant not only to ocean freight operators but also to freight forwarders, customs brokers, transport companies, manufacturers and exporters.

HMM Expands Its Hub-and-Spoke Strategy

The GIEA service forms part of HMM’s broader hub-and-spoke network strategy.
Under this model, large vessels operate on major international trade routes while regional feeder vessels connect smaller or emerging markets to strategic hubs.
HMM plans to deploy five 2,800-TEU vessels on the weekly GIEA service, creating a dedicated regional network between India and East Africa.
The company already operates the MA2 service, which provides connectivity to North and West Africa through Algeciras, Spain.
Together, these services support HMM’s wider objective of developing a stronger presence across African trade lanes.

GIEA Service at a Glance

Parameter

Details

Shipping line

HMM

Service

Gulf-India-East Africa (GIEA)

Launch

Fourth week of September 2026

Frequency

Weekly

Indian gateways

Nhava Sheva, Mundra

African gateways

Dar es Salaam, Mombasa

Vessel deployment

5 vessels

Vessel size

2,800 TEU

Rotation

Nhava Sheva → Mundra → Dar es Salaam → Mombasa

Joint operators

HMM, COSCO Shipping, PIL, Interasia Lines

What the New Service Could Mean for the Logistics Industry

The introduction of another scheduled India–East Africa service comes amid continuing uncertainty across global supply chains.
For shippers, network reliability has become increasingly important as disruptions, changing trade patterns and capacity constraints can affect transit planning and freight costs.
A dedicated weekly service can potentially offer:
However, the actual impact on transit times, freight rates and cargo volumes will depend on vessel schedules, port performance, demand and wider market conditions.

HMM's Fleet Expansion Supports Long-Term Growth

HMM is also pursuing a larger long-term container fleet strategy.
The carrier has announced plans to expand its container fleet to approximately 1.47 million TEU across 166 vessels by 2030.
The planned fleet expansion could provide additional capacity for HMM to develop regional and long-haul services as global trade patterns evolve.

What This Means for Exporters and Importers

For businesses involved in India–East Africa trade, the new GIEA service could create opportunities to review existing shipping strategies.
Companies may want to evaluate:
  • Port selection between Nhava Sheva and Mundra.
  • Connections to Mombasa and Dar es Salaam.
  • Inland transportation requirements after discharge.
  • Container availability and sailing schedules.
  • Transit-time requirements for time-sensitive cargo.
  • Total landed logistics costs.
  • Alternative carrier and routing options.

Outlook

HMM’s new GIEA service signals a growing focus on the India–East Africa maritime trade corridor.
By linking Nhava Sheva and Mundra with Mombasa and Dar es Salaam, the service could provide exporters and importers with an additional scheduled shipping option while strengthening regional feeder connectivity.
The planned expansion also reflects a wider shift in liner shipping toward hub-and-spoke networks, regional connectivity and diversified trade routes.
For India’s logistics sector, the development is particularly relevant as exporters increasingly seek dependable maritime access to emerging African markets.
Bottom line: HMM’s India–East Africa service is more than a new shipping rotation—it represents another step toward deeper maritime integration between India, the Gulf and East Africa.

Frequently Asked Questions

When will HMM's India–East Africa service start?
HMM’s new Gulf-India-East Africa (GIEA) service is scheduled to commence in the fourth week of September 2026.
The service will use Nhava Sheva and Mundra as its Indian ports.
The initial service will connect Dar es Salaam, Tanzania, and Mombasa, Kenya.
The service is planned as a weekly container service.
The service will be jointly operated by HMM, COSCO Shipping, Pacific International Lines (PIL) and Interasia Lines.
HMM plans to deploy five vessels of approximately 2,800 TEU capacity on the service.
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India’s Chemicals & Petrochemicals Sector Accelerates Growth, Attracts ₹3.4 Lakh Crore Investment

India’s chemicals and petrochemicals industry has recorded strong expansion over the past 12 years, supported by government policy reforms, new manufacturing infrastructure, investment incentives, research initiatives and skill development.
The sector is increasingly becoming an important pillar of India’s manufacturing, export and supply-chain ecosystem, with major investments flowing into Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIRs).

Key Takeaways

  • â‚ą3.4 lakh crore invested across three operational PCPIRs.
  • Nearly 3.7 lakh jobs generated through PCPIR-linked development.
  • More than 2,200 chemical manufacturing units established in PCPIRs.
  • Chemical-sector FDI reached â‚ą1,04,895 crore during 2014–2026.
  • Government implemented 37 Quality Control Orders (QCOs) to improve manufacturing standards.
  • 10 Plastic Parks approved, with four having completed infrastructure.
  • CIPET expanded to 51 centres across India.
  • Nearly 6.72 lakh professionals trained by CIPET.
  • Union Cabinet approved the BHAVYA Rasayan Scheme, with an outlay of â‚ą3,030 crore.

India’s Chemical Manufacturing Sector: What Is Driving the Growth?

India’s chemicals and petrochemicals industry has undergone substantial transformation over the last decade.
Government initiatives focused on manufacturing capacity, infrastructure, investment promotion, technology development and workforce training have helped create a stronger industrial ecosystem.
The growth also supports the broader Viksit Bharat 2047 and Atmanirbhar Bharat objectives by encouraging domestic production and reducing dependence on imported chemical products.

PCPIRs Become Major Industrial Investment Hubs

Three operational PCPIRs are currently playing a significant role in India’s chemical manufacturing landscape:
  • Dahej, Gujarat
  • Visakhapatnam–Kakinada, Andhra Pradesh
  • Paradeep, Odisha
Together, these regions have attracted approximately â‚ą3.4 lakh crore in investments, generated employment for nearly 3.7 lakh people, and supported the establishment of more than 2,200 chemical manufacturing units.

PCPIR Development at a Glance

Indicator

Reported figure

Operational PCPIRs

3

Investment attracted

â‚ą3.4 lakh crore

Employment generated

~3.7 lakh

Chemical manufacturing units

2,200+

Key locations

Gujarat, Andhra Pradesh, Odisha

These industrial clusters are important not only for manufacturing but also for logistics, warehousing, transportation, ports, chemical storage and multimodal supply chains.

Chemical Sector FDI Shows Strong Momentum

Foreign investment has also increased significantly.
According to the figures provided, FDI inflows into the sector reached ₹1,04,895 crore between 2014 and 2026, compared with ₹45,240 crore during 2004–2014.

Period

FDI inflow

2004–2014

â‚ą45,240 crore

2014–2026

â‚ą1,04,895 crore

This investment growth indicates increasing confidence in India’s chemical manufacturing capabilities and its potential as a global production and export base.

Government Pushes Quality and Domestic Manufacturing

The Government has introduced 37 Quality Control Orders (QCOs) aimed at improving product quality and addressing the availability of sub-standard imports.
At the same time, 10 Plastic Parks have been approved, with four already having completed infrastructure.
Together, these measures are designed to strengthen domestic manufacturing and improve competitiveness across the chemicals and plastics value chain.

Research, Technology and Skills Gain Importance

India’s chemical-sector growth is also being supported by investments in technology and human capital.
The Central Institute of Petrochemicals Engineering & Technology (CIPET) has expanded its network to 51 centres, including 19 centres established since 2014.
CIPET has reportedly:
  • Trained nearly 6.72 lakh professionals
  • Completed approximately 8.53 lakh technology-support service assignments
  • Expanded technical and skill-development capabilities across the country
The Institute of Pesticide Formulation Technology (IPFT) has also transferred 64 pesticide formulation technologies to industry.
In addition, IPFT received â‚ą28.69 crore from the Department of Biotechnology to establish a Biofoundry Facility focused on biopesticides and advanced biological formulations.

â‚ą3,030 Crore BHAVYA Rasayan Scheme

One of the major recent initiatives is the BHAVYA Rasayan Scheme, approved by the Union Cabinet with an outlay of â‚ą3,030 crore.
The scheme is expected to establish three plug-and-play Chemical Parks.

The objective is to:

  • Increase domestic chemical manufacturing
  • Reduce import dependence
  • Attract private investment
  • Improve manufacturing infrastructure
  • Strengthen India's global competitiveness
  • Support exports and employment

Why This Matters for Logistics and Supply Chains

The expansion of India’s chemical and petrochemical manufacturing base could create significant opportunities across the logistics sector.
More chemical production means greater demand for:
  • Specialized chemical transportation
  • Tanker and bulk logistics
  • Hazardous-material handling
  • Improve manufacturing infrastructure
  • Port-linked logistics
  • Containerized chemical movement
  • Multimodal transportation
  • Supply-chain visibility and tracking
  • Compliance and documentation
  • Digital freight management
The concentration of manufacturing activity around PCPIRs and chemical parks can also encourage the development of integrated manufacturing-to-port supply chains.
For logistics companies, this represents an opportunity to build specialized capabilities around the movement and storage of chemical products.

India’s Chemical Industry: Growth Outlook

The combination of manufacturing investments, chemical parks, infrastructure development, quality standards, technology transfer and workforce development is strengthening India’s position in the global chemicals and petrochemicals market.
The next phase of growth is likely to depend on how effectively India connects manufacturing capacity with ports, logistics infrastructure, domestic distribution networks and export markets.
For the logistics industry, the expansion of chemical manufacturing could therefore become an important source of long-term demand for specialized and technology-enabled supply-chain services.

At a Glance

India’s chemical and petrochemical sector is moving toward a more integrated manufacturing ecosystem, supported by investment, infrastructure and policy initiatives. As production capacity expands, the opportunity extends beyond chemical manufacturers to logistics providers, ports, warehouses, technology companies and supply-chain operators.

Frequently Asked Questions

What is driving the growth of India's chemicals and petrochemicals sector?
Policy reforms, infrastructure development, investment promotion, manufacturing capacity expansion, research, skill development and initiatives aimed at reducing import dependence are key growth drivers.
The three operational PCPIRs at Dahej, Visakhapatnam–Kakinada and Paradeep have attracted approximately ₹3.4 lakh crore in investment.
The sector received approximately â‚ą1,04,895 crore in FDI between 2014 and 2026, according to the figures provided.
More than 2,200 chemical manufacturing units have been established across the three operational PCPIRs.
The BHAVYA Rasayan Scheme is a government initiative with an approved outlay of â‚ą3,030 crore to establish three plug-and-play Chemical Parks and strengthen domestic chemical manufacturing.
Higher chemical production can increase demand for specialized transportation, bulk logistics, hazardous-material handling, warehousing, port logistics, compliance systems and digital supply-chain management.
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Maharashtra Leads India’s Pharma Exports with USD 5.94 Billion in FY2025-26

Maharashtra has strengthened its position as India’s leading pharmaceutical export hub, with pharma exports reaching USD 5.94 billion in FY2025-26. The state accounted for approximately 19% of India’s total pharmaceutical exports, highlighting its growing importance to India’s global healthcare supply chain.
The performance reflects Maharashtra’s combination of pharmaceutical manufacturing capacity, research capabilities, skilled talent and multimodal logistics infrastructure. The state has emerged as a critical link between Indian pharmaceutical producers and international healthcare markets.

Key Highlights

  • USD 5.94 billion — Maharashtra’s pharmaceutical exports in FY2025-26
  • 19% — Share of India’s total pharmaceutical exports attributed to Maharashtra
  • Major export markets — United States, Europe, Africa, Latin America and Asia
  • Key products — Generic medicines, APIs, vaccines, biosimilars and specialty drugs
  • Major logistics gateways — Jawaharlal Nehru Port and Mumbai Port
  • Major pharma clusters — Mumbai, Pune, Aurangabad and Nashik
  • Growth drivers — Manufacturing investment, PLI incentives, infrastructure and export-oriented production

Why Maharashtra Is Emerging as a Pharma Export Powerhouse

Maharashtra has developed one of India’s most diversified pharmaceutical ecosystems. The state’s manufacturing base is supported by pharmaceutical companies, research institutions, industrial clusters and a large pool of skilled professionals.
Its production capabilities span several high-value pharmaceutical categories, including:

Pharmaceutical Segment

Export Importance

Generic medicines

Large international demand for affordable medicines

Active Pharmaceutical Ingredients (APIs)

Critical input for global drug manufacturing

Vaccines

Important component of global healthcare supply chains

Biosimilars

Growing demand in international markets

Specialty pharmaceuticals

Higher-value and technology-intensive products

This combination allows Maharashtra to serve multiple international markets while supporting India’s broader ambition to become a global pharmaceutical manufacturing centre.

Logistics Infrastructure Gives Maharashtra an Export Advantage

For pharmaceutical exporters, manufacturing capacity alone is not enough. Temperature-sensitive and time-critical products require reliable transportation, port connectivity, air cargo infrastructure and efficient customs processes.
Maharashtra benefits from an extensive multimodal logistics network connecting manufacturing clusters with international gateways.

Pharma Export Logistics Flow

This connectivity can help pharmaceutical manufacturers move products from production centres to international markets more efficiently.

Maharashtra’s Role in India’s Global Pharmaceutical Supply Chain

The state’s pharmaceutical export strength also contributes to India’s integration into global healthcare supply chains.
Policy support + Manufacturing capacity + R&D + Logistics connectivity = Stronger Pharma Export Competitiveness
Government initiatives such as the Production Linked Incentive (PLI) programme, bulk drug parks and measures aimed at improving the business environment have supported investment and manufacturing expansion across India’s pharmaceutical sector.
For Maharashtra, these initiatives complement an already established industrial ecosystem and logistics network.

Major Export Markets

Maharashtra’s pharmaceutical products reach several important international markets.

Region

Strategic Importance

United States

One of the world's largest pharmaceutical markets

Europe

Major market for medicines and healthcare products

Africa

Strong demand for affordable medicines

Latin America

Expanding pharmaceutical trade opportunities

Asia

Growing healthcare and pharmaceutical demand

The continued demand for affordable and quality medicines creates opportunities for Maharashtra-based manufacturers to expand their international presence.

What Could Drive the Next Phase of Growth?

Maintaining export leadership will depend increasingly on more than manufacturing scale.
Key areas likely to influence Maharashtra’s future pharmaceutical competitiveness include:
  • Research and development — Greater investment in new medicines, formulations and advanced pharmaceutical technologies.
  • Digital manufacturing — Wider adoption of automation, data analytics and intelligent manufacturing systems.
  • Regulatory capability — Strong compliance with increasingly complex international pharmaceutical standards.
  • Cold-chain infrastructure — More sophisticated temperature-controlled logistics for sensitive products.
  • Port and cargo efficiency — Faster movement of pharmaceutical shipments through India's export gateways.
  • Global supply-chain integration — Deeper participation in international pharmaceutical value chains.

Logistics Is Becoming a Strategic Advantage

The Maharashtra pharma story demonstrates an important shift in India’s export economy: manufacturing and logistics are increasingly interconnected.
A pharmaceutical product may be manufactured in an industrial cluster, transported through road or rail networks, processed at a port or air-cargo facility and finally delivered to a healthcare market thousands of kilometres away.
The efficiency of that entire chain can influence export competitiveness.

Conclusion

Maharashtra’s USD 5.94 billion pharmaceutical exports in FY2025-26 underline the state’s importance in India’s global pharmaceutical trade.
Its combination of manufacturing clusters, research capabilities, skilled workforce and multimodal logistics infrastructure provides a strong foundation for continued export growth.
As global demand for medicines and healthcare products increases, Maharashtra is well positioned to remain a key pharmaceutical export gateway for India.

Frequently Asked Questions

How much pharmaceutical did Maharashtra export in FY2025-26?
Maharashtra recorded pharmaceutical exports worth approximately USD 5.94 billion during FY2025-26.
Maharashtra accounted for approximately 19% of India’s total pharmaceutical exports during FY2025-26.
Its importance comes from the combination of pharmaceutical manufacturing, research institutions, skilled talent, industrial clusters and multimodal logistics infrastructure.
Major gateways include Jawaharlal Nehru Port (JNPA) and Mumbai Port, supported by road, rail and air-cargo connectivity.
The state’s pharmaceutical ecosystem includes generic medicines, APIs, vaccines, biosimilars and specialty pharmaceutical products.
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India’s Economy Poised to Cross $5 Trillion in FY29: IMF Projects $5.1 Trillion Milestone

India is on course to cross the $5 trillion economy milestone in FY29 (2028–29), with the International Monetary Fund (IMF) projecting the country’s nominal GDP to reach approximately $5.1 trillion, according to figures cited by Union Finance Minister Nirmala Sitharaman in the Rajya Sabha.
The projected milestone underscores India’s continued economic expansion and highlights the importance of infrastructure, manufacturing, logistics, digitalisation and trade competitiveness in supporting the country’s long-term growth ambitions.

India’s $5 Trillion Economy: Key Highlights

  • $5.1 trillion: Projected size of India’s economy by FY29.
  • FY29 milestone:India is expected to cross the $5 trillion threshold by 2028–29.
  • Public capital expenditure: Continued infrastructure investment remains a key growth driver.
  • Manufacturing push: PLI schemes are supporting investment and domestic production.
  • Logistics infrastructure: PM GatiShakti and the National Logistics Policy are aimed at improving multimodal connectivity and reducing logistics inefficiencies.
  • MSME support: Government measures are designed to strengthen small and medium-sized businesses.
  • Trade expansion: Free Trade Agreements are expected to improve market access and strengthen India's trade resilience.
  • Strategic sectors: Semiconductors, clean energy and advanced manufacturing are emerging as important growth areas.
  • Digital infrastructure: Expansion of India's digital public infrastructure is supporting wider economic formalisation and efficiency.

What Is Driving India Towards the $5 Trillion Economy?

India’s projected economic expansion is being supported by a combination of public investment, manufacturing growth, infrastructure development, digitalisation and trade reforms.
1. Higher Infrastructure Investment
Public capital expenditure continues to play an important role in expanding roads, railways, ports, airports and industrial infrastructure.
Improved connectivity can reduce transportation bottlenecks, support faster movement of goods and improve supply-chain efficiency across manufacturing and trading hubs.
2. Manufacturing and the PLI Push
The Production Linked Incentive (PLI) programme is supporting investments across strategic manufacturing industries.
Greater domestic manufacturing capacity could create additional demand for:
  • Freight transportation
  • Warehousing
  • Industrial logistics
  • Port and terminal services
  • Multimodal transportation
  • Supply-chain technology
3. PM GatiShakti and National Logistics Policy
India’s logistics transformation is closely linked to infrastructure and multimodal connectivity.
PM GatiShakti focuses on integrated infrastructure planning, while the National Logistics Policy aims to improve logistics efficiency and reduce friction across the movement of goods.
For businesses, better integration between road, rail, ports, airports and logistics facilities can help reduce transit delays and improve supply-chain reliability.
4. Expanding Global Trade
India is also strengthening its position in global trade through Free Trade Agreements and efforts to diversify export markets.
Improved market access can support growth in sectors such as:
  • Engineering goods
  • Electronics
  • Pharmaceuticals
  • Automotive products
  • Chemicals
  • Textiles
  • Food and agricultural products
5. Strategic Emerging Industries
The government is increasingly focusing on industries expected to shape India’s next phase of economic growth, including semiconductors, clean energy and advanced manufacturing.
The development of these industries is likely to generate new logistics requirements involving specialised transportation, industrial warehousing, international freight and time-sensitive supply chains.

India’s $5 Trillion Economy and the Logistics Sector

India’s economic expansion has a direct connection with logistics.
As manufacturing capacity, exports, imports and domestic consumption increase, the demand for efficient cargo movement and supply-chain infrastructure is also expected to rise.
Potential Economic Impact Chain

Key Sectors That Could Benefit

Sector

Potential Impact

Ports & Shipping

Higher EXIM cargo volumes and demand for efficient port connectivity

Road Logistics

Increased domestic freight movement

Rail Freight

Greater demand for cost-efficient long-distance cargo transportation

Warehousing

Expansion of manufacturing and distribution networks

Freight Forwarding

Higher international trade and multimodal shipment volumes

Manufacturing Logistics

More demand for inbound and outbound supply-chain services

Technology

Greater adoption of digital logistics and supply-chain platforms

MSMEs

Wider participation in domestic and international supply chains

What Does a $5 Trillion Indian Economy Mean for Logistics?

A larger economy generally translates into greater movement of raw materials, components, finished products and international cargo.
For India’s logistics industry, the next phase of growth could therefore focus not only on increasing capacity but also on improving visibility, automation, multimodal coordination and operational efficiency.
Technology-enabled logistics platforms can help businesses manage growing shipment volumes while reducing manual processes, documentation errors and fragmented data.

Outlook: India’s Economic Growth Could Accelerate Logistics Transformation

The projected $5.1 trillion economy by FY29 represents more than a headline economic milestone. It could also mark an important phase in India’s transformation into a larger manufacturing, trading and logistics hub.
Continued investment in infrastructure, manufacturing, digital systems and trade connectivity will be critical to translating economic growth into greater supply-chain competitiveness.
For the logistics sector, the opportunity lies in building a more connected, technology-driven and multimodal logistics ecosystem capable of supporting India’s expanding domestic and international trade.

Frequently Asked Questions

When is India expected to cross the $5 trillion economy milestone?
According to IMF projections cited by Finance Minister Nirmala Sitharaman, India is expected to cross the $5 trillion economy mark in FY29 (2028–29).
The IMF projection cited by the government puts India’s economy at approximately $5.1 trillion by 2028–29.
Key drivers include public capital expenditure, manufacturing expansion, infrastructure development, FDI liberalisation, agricultural productivity, digital infrastructure and trade expansion.
A larger economy could generate higher demand for freight transportation, warehousing, ports, shipping, multimodal logistics and supply-chain technology as domestic production and international trade expand.
PM GatiShakti promotes integrated infrastructure planning across transport networks, while the National Logistics Policy focuses on improving logistics efficiency, connectivity and coordination across the supply chain.
Posted on

India’s SEZ Exports Rise 11.8% in FY2025-26, Strengthening Export-Led Growth

India’s Special Economic Zones (SEZs) continued to strengthen their position as major export hubs in FY2025-26, with exports rising 11.8% year-on-year to approximately ₹16.89 lakh crore.
The growth highlights the growing contribution of SEZs to India’s manufacturing, services, employment and international trade ecosystem, particularly as the country seeks to expand its participation in global value chains.

Key Highlights

  • SEZ exports: â‚ą16.89 lakh crore in FY2025-26
  • Annual growth: 11.8% year-on-year
  • Previous-year exports: Approximately â‚ą15.11 lakh crore
  • Cumulative investment: More than â‚ą7.5 lakh crore
  • Direct employment: Over 3 million people
  • Major sectors: IT/ITeS, engineering, pharmaceuticals, electronics, chemicals, textiles, gems and jewellery
  • Policy focus: Ease of doing business, infrastructure development and regulatory simplification
  • Emerging opportunities: Electronics, semiconductors, renewable-energy equipment and advanced manufacturing

SEZ Exports Continue to Gain Momentum

Exports from India’s SEZs increased from approximately ₹15.11 lakh crore in FY2024-25 to ₹16.89 lakh crore in FY2025-26, representing an increase of around ₹1.78 lakh crore.

Indicator

FY2024-25

FY2025-26

Change

Change

â‚ą15.11 lakh crore

â‚ą16.89 lakh crore

0.118

Cumulative investment

—

â‚ą7.5+ lakh crore

—

Direct employment

—

3+ million

—

The performance comes as India continues to promote export-oriented manufacturing and services while expanding trade relationships with international markets.

Which Sectors Are Driving SEZ Growth?

SEZ export activity remains diversified across technology-intensive manufacturing, services and traditional export industries.

Key contributors include:

  • IT and IT-enabled services – Supporting India's position in global digital and business services.
  • Engineering goods – Benefiting from demand for industrial and infrastructure-related products.
  • Pharmaceuticals – Strengthening India's role in global healthcare supply chains.
  • Electronics – Emerging as an important export-oriented manufacturing segment.
  • Chemicals – Supporting industrial and downstream manufacturing supply chains.
  • Textiles – Maintaining India's presence in international apparel and textile markets.
  • Gems and jewellery – Continuing to contribute to India's merchandise exports.

SEZs Are Becoming More Important to India’s Manufacturing Strategy

The latest export performance is significant because SEZs are increasingly being positioned as integrated hubs for manufacturing, services, logistics and international trade.
Investment in operational SEZs has crossed â‚ą7.5 lakh crore, while direct employment generated by these zones has exceeded 3 million.
This combination of investment, employment and export activity creates a broader economic impact by connecting manufacturers and service providers with ports, airports, logistics operators, customs facilities and international markets.

Policy Reforms Could Shape the Next Phase

The government has continued to focus on improving the SEZ ecosystem through measures aimed at simplifying regulations, improving infrastructure and making it easier for businesses to operate.
Potential modernization of the SEZ framework could further improve India’s ability to attract:
  • Export-oriented manufacturing
  • Foreign direct investment
  • Global supply-chain operations
  • Electronics and semiconductor production
  • Renewable-energy equipment manufacturing
  • Advanced engineering and industrial production
  • Global business and technology services

SEZ Export Growth: Impact Chain

What This Means for Logistics

The expansion of SEZ exports could generate additional demand across India’s logistics ecosystem.
Higher production and international shipments can translate into increased requirements for freight forwarding, customs clearance, warehousing, container transportation, port handling and cargo visibility.
For logistics companies, the growth of export-oriented industrial clusters also creates opportunities to provide integrated services connecting SEZ manufacturers with ports, airports and overseas markets.

Outlook

India’s 11.8% SEZ export growth in FY2025-26 points to continued momentum in the country’s export-oriented industrial ecosystem.
As India expands FTAs, promotes domestic manufacturing and seeks a larger role in global value chains, SEZs could become increasingly important hubs for international trade, manufacturing and logistics.
The next phase of SEZ development will depend on how effectively policy reforms, infrastructure investment, technology adoption and global trade opportunities are combined to create a more competitive export ecosystem.

Frequently Asked Questions

How much did India’s SEZ exports grow in FY2025-26?
India’s SEZ exports increased by 11.8% year-on-year in FY2025-26.
SEZ exports reached approximately â‚ą16.89 lakh crore during FY2025-26.
Major sectors include IT/ITeS, engineering goods, pharmaceuticals, electronics, chemicals, textiles, and gems and jewellery.
Cumulative investment in operational SEZs has crossed â‚ą7.5 lakh crore.
Growing SEZ production and exports can increase demand for freight forwarding, customs clearance, warehousing, container transport, port services and multimodal logistics.
Posted on

India-Oman CEPA: Import Quota Window Opens for 30 Products in FY 2026-27

India has opened the application window for tariff-rate quotas (TRQs) covering 30 products under the India-Oman Comprehensive Economic Partnership Agreement (CEPA) for the financial year 2026-27.
The move gives eligible Indian importers an opportunity to access specified Omani products at preferential customs duty rates, including reduced or zero-duty treatment depending on the applicable product category and quota allocation.
The development is particularly relevant for businesses sourcing metals, petrochemicals, agricultural products and industrial raw materials from Oman.

Key Highlights

  • 30 products are covered under the latest import quota allocation.
  • The quotas apply under the India-Oman CEPA for FY 2026-27.
  • Eligible importers can apply for allocation of tariff-rate quotas (TRQs).
  • Products covered include dates, marble, copper weld wire, aluminium products and selected petrochemicals.
  • Preferential tariffs can help reduce the landed cost of eligible imports.
  • The measure is expected to support Indian manufacturers dependent on imported raw materials.
  • Better utilisation of CEPA preferences could strengthen India-Oman trade and regional supply chains.

Which Products Are Covered?

The quota-based concessions cover products from several sectors, including agriculture, metals and petrochemicals.

Sector

Examples of Products Covered

Potential Importer Benefit

Agriculture

Dates

Preferential tariff access

Minerals & Construction

Marble

Lower import costs

Copper

Copper weld wire

Reduced input costs

Aluminium

Ingots, billets and wires

Support for manufacturing

Petrochemicals

Ethylene glycol

Lower raw-material costs

Petrochemicals

Linear alkylbenzenes

Preferential sourcing

Plastics & Polymers

LDPE

Potential reduction in landed cost

The applicable concession depends on the product, quota allocation and conditions prescribed under the CEPA/TRQ framework.

Why the Import Quota Matters for Indian Businesses

Tariff concessions can have a direct impact on the landed cost of imported raw materials.
For manufacturers, processors and distributors, lower customs duties can improve sourcing economics and potentially strengthen margins. The impact could be particularly relevant for industries that depend on aluminium, petrochemical feedstocks, polymers and other industrial inputs.
For importers, however, simply having a preferential tariff available does not guarantee the benefit. Businesses need to meet the applicable eligibility, quota allocation, documentation and customs requirements.

India-Oman CEPA and the Logistics Opportunity

The India-Oman CEPA came into force on June 1, 2026, creating a new framework for expanding bilateral trade.
For the logistics sector, increased utilisation of the agreement could generate additional demand across several parts of the supply chain:
As trade volumes increase, logistics providers may see opportunities in ocean freight, customs brokerage, port handling, warehousing, inland transportation and supply-chain management.

What Importers Should Check

Businesses planning to source eligible products from Oman should pay particular attention to:

  • Product classification – Confirm the correct HS code and whether the product is covered by the relevant quota.
  • TRQ eligibility – Verify whether the importer meets the applicable allocation requirements.
  • Quota availability – Check the quantity allocated and the validity period.
  • Rules of origin – Ensure the goods meet the applicable CEPA origin requirements.
  • Customs documentation – Prepare the required certificates and import documents.
  • Duty calculation – Confirm the preferential rate applicable to the specific product.
  • Shipment planning – Align procurement and logistics schedules with the quota validity period.

What This Means for the Logistics Industry

What This Means for the Logistics Industry The implementation of tariff concessions can influence logistics decisions well beyond customs duty savings.
Lower import costs may encourage companies to reassess their sourcing strategies and increase procurement from Oman where commercially viable. This could affect shipping volumes, port operations, inventory planning and warehouse requirements.
For freight forwarders and customs specialists, CEPA-linked imports could also create opportunities to help customers manage origin documentation, tariff classification, quota utilisation and customs compliance.

India-Oman Trade: A Strategic Supply-Chain Link

Oman occupies an important position in India’s wider Gulf and Indian Ocean trade network. Greater use of the CEPA framework could strengthen commercial connections between the two markets while supporting diversification of sourcing channels.
For Indian manufacturers, the agreement could provide another route for securing key industrial inputs. For Omani exporters, preferential access can improve their competitiveness in the Indian market.
The result could be deeper cooperation across manufacturing, metals, petrochemicals, agriculture, logistics and related services.

Bottom Line

The opening of the India-Oman CEPA import quota window for 30 products is an important step in putting the bilateral trade agreement into practical use.
For Indian importers, the immediate priority is to understand quota eligibility, product classification, origin requirements, documentation and applicable preferential duties.
For the logistics industry, greater utilisation of the agreement could translate into new opportunities across freight forwarding, customs clearance, port handling, warehousing and inland transportation as India-Oman trade flows expand.
For businesses importing from Oman, the key question is no longer simply whether CEPA offers a tariff advantage — it is whether the available quota and compliance requirements can be effectively incorporated into their sourcing and logistics strategy.

Frequently Asked Questions

What is the India-Oman CEPA?
The India-Oman CEPA is a bilateral trade agreement designed to improve market access and strengthen economic relations between India and Oman through preferential trade arrangements.
The latest quota exercise covers 30 products for FY 2026-27.
A tariff-rate quota, or TRQ, allows a specified quantity of a product to enter a country at a preferential tariff rate, subject to the conditions of the applicable trade agreement and quota allocation.
The listed products include dates, marble, copper weld wire, aluminium ingots, billets and wires, along with selected petrochemical products such as ethylene glycol, linear alkylbenzenes and LDPE.
No. Importers must meet the prescribed eligibility requirements and obtain the relevant quota allocation. The applicable conditions should be verified before shipment and customs clearance.
Preferential tariffs can potentially reduce the landed cost of eligible imported raw materials and improve sourcing efficiency for industries dependent on Omani products.
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