The Role of FTWZs in India's Export Growth Strategy

In an interaction with Thiruamuthan, Correspondent at Industry Outlook, Chandrashekhar Pitre, Vice President of Nhava Sheva Economic Zones at DP World Subcontinent, discusses how Free Trade Warehousing Zones (FTWZs) are emerging as critical enablers of India’s export growth by supporting value-added services, improving supply chain resilience, and aligning with national policies to strengthen competitiveness in global trade. Chandrashekhar Pitre, a seasoned business leader with over 30 years of experience, specializes in logistics, supply chain, and financial services, with expertise in P&L leadership, business transformation, multimodal strategy, stakeholder engagement, and cross-sector commercial growth.

With global trade patterns shifting and India’s export focus intensifying, how are FTWZs evolving in their role as critical hubs for value-added exports and re-exports?

With India’s exports crossing $824.9 billion in FY2024–25, Free Trade Warehousing Zones (FTWZ) can be a critical enabler of growth. By linking global trade flows with India’s manufacturing and processing strengths, FTWZs support value-added exports and re-exports.

In this evolving landscape, Free Trade Warehousing Zones (FTWZs) provide flexibility through duty-deferment, different storage solutions for a wide array of cargo, among other regulatory benefits, helping businesses manage working capital more effectively. They also enable value-added services such as labeling, kitting, assembly, and quality checks to tailor goods in line with customs guidelines and customer requirements. These services not only enhance product readiness and ensure compliance with market-specific regulations but also give cargo owners greater control to make business decisions based on external conditions. Sectors such as electronics, pharmaceuticals, FMCG, consumer products, chemicals, and automotive—highly exposed to geopolitical shifts and compliance demands—stand to benefit significantly. When leveraged effectively, FTWZs can strengthen sectoral capabilities and, in turn, build more resilient supply chains.

DP World’s FTWZs located at Nhava Sheva, Chennai, and Cochin are strategically integrated into its multimodal logistics network, offering over 1.7 million sq. ft. of specialized warehousing space. Their proximity to major ports and seamless access to road, rail, and maritime corridors enable smoother cargo movement and faster turnaround.

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As re-export efficiency is a key advantage of FTWZs, how well are Indian zones competing with established hubs in Southeast Asia in capturing transshipment-led trade?

Re-export through FTWZs gives India a unique advantage by linking global trade flows with its manufacturing and consumption base. While hubs like Singapore and Malaysia have historically dominated transshipment-led trade, Indian FTWZs are gaining traction thanks to proximity to large domestic markets, competitive operating costs, and strong port connectivity. DP World’s three FTWZs in India complement this effort by offering strategic hubs to consolidate, store, and re-export cargo—positioning India as a complementary trade hub that can efficiently serve South Asia, the Middle East, and Africa.

Considering global shifts in value chains and India’s PLI-led export strategy, what structural or policy innovations are needed to make FTWZs more future-ready and globally competitive?

India’s PLI-led export strategy, along with policy initiatives like the NLP and PM Gati Shakti, is accelerating manufacturing and export growth, making the country’s industrial base more globally competitive. The incentives under the PLI scheme are to drive higher production and enable faster market access.

The revamped Foreign Trade Policy (FTP) of 2023, with its digital-first approach through Bharat Trade Net, simplifies processes and enhances the ease of doing business for exporters. Together, these structural shifts position FTWZs not merely as infrastructure, but as enablers of scale and speed—allowing Indian industries to integrate seamlessly into global trade flows. At DP World, we have already invested in future-ready assets like our network of FTWZs in India, designed to complement these national efforts and help businesses connect manufacturing strength with global opportunities. By creating an ecosystem where facilitation meets competitiveness, India is building a platform that is not only future-ready but also capable of setting new benchmarks for world trade.