Law Updates

Subject

Summary: The Directorate General of Foreign Trade ( DGFT ), through Notification S.O. 429(E), has amended the import policy under ITC (HS) 2022, Schedule-I, in line with the Foreign Trade Policy (FTP) 2023. The amendment applies to Penicillin G-Potassium (ITC HS 29411010), 6-APA (29411050), and Amoxicillin Trihydrate (29411030) falling under Chapter 29. As per the revised policy, imports of these pharmaceutical intermediates are now classified as “Restricted” if the CIF value falls below prescribed thresholds Rs 2,216/kg for Penicillin G, Rs 3,405/kg for 6-APA, and Rs 2,733/kg for Amoxicillin. The restriction is effective immediately and will remain in force for one year from the date of notification. However, the DGFT has provided specific exemptions. The restriction does not apply to 100% Export Oriented Units (EOUs), SEZ units, or imports under the Advance Authorisation Scheme, subject to the condition that such imported inputs are not diverted to the Domestic Tariff Area (DTA). This move aims to protect domestic API manufacturers, address undervalued imports, and strengthen India’s pharmaceutical supply chain.

Subject

Summary: The Ministry of Heavy Industries issued a new order on 14 January 2026 in New Delhi. This order cancels an earlier notification dated 28 August 2024. The cancelled rule was called the Machinery and Electrical Equipment Safety (Omnibus Technical Regulation) Order, 2024. The Central Government used powers given under Section 16 of the Bureau of Indian Standards Act, 2016. The decision came after reviewing public interest needs. The cancellation takes effect immediately. This change removes mandatory safety rules that applied to machinery and electrical equipment under the 2024 order.  Industries no longer need to follow that specific regulation. However, other BIS standards and safety laws still apply. This update gives relief to manufacturers, importers, and suppliers. It also brings clarity on BIS compliance requirements in India. The notification appeared in the Gazette of India as an official government record. This order marks an important policy shift in machinery and electrical equipment regulation in India.

Subject

Summary: The Ministry of Heavy Industries (MHI) has updated the Production Linked Incentive (PLI) Scheme for Automobile and Auto Components (PLI-Auto) in India, effective from 13th January 2026. The amendment changes the performance criteria for Battery Electric Vehicles (BEVs) to qualify for incentives. Earlier, BEVs had to follow the FAME-II scheme, but now they must meet specific standards mentioned in Table 1A of the notification.  These standards cover different types of BEVs, including two-wheelers, three-wheelers, four-wheelers, e-buses, trucks, and quadricycles, and are based on the PM E-DRIVE and FAME-II schemes. Two-wheelers and three-wheelers must follow Annexure-3 of the PM E-DRIVE Scheme, trucks follow Annexure-3A, and quadricycles must meet minimum requirements for range, speed, acceleration, and energy consumption as per Appendix-1.  All BEVs must be tested by MHI-approved agencies, and every vehicle should have an Electric Regenerative Braking System. Testing follows the Central Motor Vehicles Rules (CMVR) standards to ensure accuracy in energy efficiency, speed, and acceleration. This amendment replaces all previous references to BEV performance criteria in the PLI-Auto scheme. The update encourages high-quality manufacturing, ensures measurable performance standards, and supports India’s goal of promoting electric mobility by offering clear incentives to eligible BEVs.

Subject

Summary: On 5 January 2026, the Ministry of Chemicals and Fertilizers notified three separate amendment orders under the Bureau of Indian Standards Act, 2016. These amendments address quality control requirements for different categories of textile-based plastic woven sacks used in cement packaging and mail movement. The first amendment covers HDPE and Polypropylene woven sacks meant for packaging 50 kg cement. The second amendment applies to Polypropylene woven, laminated, block bottom valve sacks used for 50 kg cement packaging. The third amendment relates to Polypropylene and HDPE laminated woven sacks used for mail sorting, storage, transport, and distribution. The key change across all three orders is the extension of the enforcement date. Earlier, these quality control requirements were scheduled to take effect sooner. The amended orders now clearly state that mandatory compliance will begin on 6 October 2026. This revised timeline applies to HDPE and PP woven sacks for 50 kg cement packaging, PP woven laminated block bottom valve sacks for cement, and PP/HDPE laminated woven sacks used for mail sorting, storage, transport, and distribution. The extension supports manufacturers by providing additional time to align production processes with BIS standards. It also helps avoid supply disruptions in the cement and logistics sectors. These amendments reflect the government’s balanced approach to public interest, quality assurance, and ease of compliance. Once enforced, BIS certification will remain compulsory to ensure product safety, durability, and consistent quality across regulated textile packaging products.

Subject

Summary: The Directorate General of Foreign Trade (DGFT) has issued a key notification permitting the export of organic sugar, subject to a defined annual ceiling. As per the latest amendment, the Government of India has permitted the export of 50,000 Metric Tonnes (MT) of organic sugar per financial year, providing long-awaited relief to exporters. This decision is a partial modification of Notification No. 36/2023 dated October 18, 2023, under which organic sugar exports were placed in the Restricted category. Under the revised policy, organic sugar falling under HS Codes 1701 14 90 and 1701 99 90 is now allowed for export with immediate effect, subject to the prescribed annual cap of 50,000 MT. Exports will be governed by the Foreign Trade Policy (FTP), 2023, ensuring regulatory compliance and transparency. Further, the Agricultural & Processed Food Products Export Development Authority (APEDA) will issue detailed modalities for implementation, including allocation and procedural requirements. This move is expected to promote organic agriculture exports, support certified exporters, and strengthen India’s presence in the global organic sugar market.

Subject

Summary: The Credit Guarantee Scheme for Exporters (CGSE) became operational from 1 December 2025 through the Jan Samarth Portal. The scheme supports Indian exporters during uncertain global conditions by improving access to finance. Exports play a key role in India’s economy and contribute nearly 21% of GDP. Export-related industries also support employment for more than 45 million people, with MSMEs contributing around 45% of total exports.  The CGSE provides a 100% government-backed credit guarantee for additional loan facilities given by banks and financial institutions. The scheme allows collateral-free credit support up to 20,000 crore rupees for direct and indirect exporter MSMEs. This support improves liquidity, ensures smooth business operations, and helps exporters enter new and emerging markets. Within the first month, 1,788 applications worth 8,599 crore rupees were received.  Out of these, 716 applications amounting to 3,141 crore rupees were sanctioned. These figures show strong confidence among exporters and lending institutions. Exporters can receive additional working capital loans of up to 20% of existing export credit limits. The scheme helps improve competitiveness, maintain employment, and strengthen India’s export ecosystem. CGSE remains open until 31 March 2026 or until the full guarantee limit is reached.