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India’s foreign trade landscape is gradually changing structurally. The actual impact of this change can be seen in the manner in which goods are stored, treated and released; as opposed to just seeing how many exports have been sent or how many containers came into port. The latest performance report from India’s Jawaharlal Nehru Port Authority’s (JNPA) Special Economic Zone (SEZ) serves as a useful indicator of this development, showing that JNPA’s container traffic increased by approximately 27% (from 2022 to 2025), which demonstrates the significance of the integrated trade infrastructure now being built within India’s borders. While the increase also demonstrates there is a growing belief in JNPA’s ability to provide effective facilitation and distribution capabilities, it also reflects a larger shift in the increasing importance of Free Trade Warehousing Zones (FTWZ) within the architecture of trade in India. As trade volumes continue to increase, global supply chains are becoming more sensitive to time and/or financial pressures; therefore, FTWZ will not be viewed as optional building blocks, but will become critical pieces when developing trade processes in India.
JNPA SEZ Performance Signals Structural Momentum
The JNPA Special Economic Zone increased its number of TEUs to 20,693 in CY25 compared to 16,312 TEUs in CY24. The increase was not only due to a short-term seasonal surge, but has shown an upward trend, indicating continuing trade activity via India’s largest container/gateway. The scale of JNPA, as well as its connection with global shipping routes and reduced distance to major industrial/consumption centers, makes it the preferred location for import/export cargo.
The JNPA SEZ occupies over 277 Hectares of land with a large percentage already leased and operational. The establishment of multiple working units and an operational FTWZ (free trade warehousing zone) within the SEZ shows how the future of modern trade infrastructure is developing: not just port proximity, but in terms of added value to logistic ecosystems. As the number of EXIM TEUs through JNPA continues to increase, so too does the continued visibility of the warehousing, deferred mechanism, and compliance-ready facilities that support those same EXIM TEUs.
Why FTWZs Are Gaining Strategic Importance
To tackle India’s huge challenge of high costs associated with carrying inventories due to upfront customs duties, Free Trade Warehousing Zones (FTWZs) were developed to import goods into the country and keep them in a duty-free manner for long periods of time; companies are now only required to pay customs duties on the imported goods when they are brought into the domestic tariff area. This one feature has significant downstream benefits for all importers and exporters as well as for global traders.
With the increased volume of business being processed through Indian ports, such as JNPA, companies are looking beyond just moving cargo from one location to another. Companies are now more focused on inventory planning and management of risks and financing than ever before. FTWZ directly meets these needs through:
- The ability to defer customs duty payment provides an immediate reduction in cash-flow requirements.
- Extended storage periods allow companies to distribute their inventory according to customer demand.
- The ability to simplify re-exportation and/or transshipment of goods, especially for shipments to other regional markets.
- The ability to perform value-added activities such as labelling and packaging, and consolidation.
The operational FTWZ within the JNPA Special Economic Zone (SEZ) is well-positioned to fit into this overall model and will most certainly add significant depth to the facilitation of trade and in making the port region a key driver of the growth of the Indian economy.
JNPA, FTWZs, and the Shift Toward Inventory-Led Trade
While the focus of traditional trade models has been on a linear movement of goods, (importation, customs clearance, and distribution), the current trade environment has been characterized by changing customer demand, geopolitical uncertainty, and price fluctuations that require far more flexibility in how we move products through our distribution system. Based on the dramatic increase in container volumes at JNPA, we have been moving increasingly more freight, but the way we will be handling that freight after it has arrived will also become equally important.
Free Trade Warehousing Zones (FTWZs) will provide us with inventory-based trade strategies where we can position our goods closer to the markets without creating a large tax liability upon importation. Since JNPA is positioned to be the gateway for the broadest range of products from engineering and electronics to chemicals and consumer goods, the development of an FTWZ within the JNPA SEZ gives us the opportunity to make our storage decisions more aligned with market conditions rather than customs clearance issues.
Enhancing Trade Confidence Through Infrastructure and Facilitation
Recent comments made by JNPA’s leadership appear to demonstrate an increase in the level of trust by the trade and industry elements regarding the infrastructure and facilitation methods provided through the SEZ organization. This trust is enhanced through both the efficiency of the port operations system, along with logistics methods that provide compliant, scalable options.
The FTWZs play a very important, but quiet, role in the manner in which they support the entire complexity of logistics operations. They help ensure that the increasing volumes related to container traffic at JNPA will not lead to congestion, or delays, or high costs.
FTWZs will provide some necessary level of assurance to the trade and industry entities that operate out of JNPA as the volume of containerized cargo continues to increase, and therefore provide necessary working environments for distribution entities that operate out of India. FTWZs provide an excellent opportunity to facilitate distribution for multinational or regional distribution companies who are currently using JNPA as a principal entry and exit point.
Supporting India’s Role in Global and Regional Trade
India aims to expand its trade beyond what’s needed for local consumption. The nation has set out to establish itself as a center of manufacturing and distribution for both regional and global markets. This is also reflected in the recent growth of JNPA (Jawaharlal Nehru Port Authority) and its Special Economic Zones (SEZs). However, simply having ports in place is not enough to create this new trading environment; there needs to be adequate buffering facilities to allow various types of goods to be stored while they await processing or redistribution.
FTWZs (Free Trade Warehousing Zones) are the perfect example of this type of buffering facility. These warehousing zones must be located in close proximity to ports such as JNPA in order to facilitate transshipment activities as well as allow for re-exporting of product and distribution across multiple countries. As such, FTWZs have become an important component of India’s growing international involvement and increased trade with other countries through Free Trade Agreements (FTAs). By incorporating FTWZs within major port-related SEZs, India has strengthened its position as an international trading partner.
OSV FTWZ: Aligning FTWZ Capabilities with Port-Led Trade Growth
With increasing volumes of EXIM across major gateways such as JNPA, the need for professionally managed Free Trade Warehousing Zones is becoming more pronounced. OSV FTWZ operates within this evolving trade environment by enabling importers and exporters to manage cargo through compliant, efficient, and flexible warehousing solutions that align with modern supply chain demands.
OSV FTWZ supports critical trade enablers such as duty deferment, long-term bonded storage, and value-added logistics activities including labelling, packaging, consolidation, and redistribution. These capabilities are specifically designed to help businesses manage higher cargo volumes, tighter delivery timelines, and fluctuating demand patterns without increasing working capital pressure.
By integrating seamlessly with port-led growth models, the FTWZ framework allows trade participants to optimise inventory flow, defer customs liabilities until actual market release, and remain fully aligned with regulatory requirements. In a rapidly expanding port ecosystem like JNPA—where project-led growth and rising container throughput are reshaping trade dynamics—OSV FTWZ provides the infrastructure depth required to sustain momentum, reduce operational friction, and support scalable trade expansion without adding financial or compliance burdens.
Conclusion
The 27% growth in EXIM volumes at JNPA SEZ reflects a broader shift in how trade is being enabled in India. As cargo volumes increase, the emphasis is moving beyond port capacity to efficient inventory management and trade facilitation. Free Trade Warehousing Zones play a critical role in this transition by supporting duty deferment, flexible storage, and smoother distribution. The JNPA experience highlights how integrated FTWZ-led infrastructure is becoming essential to sustaining long-term trade growth.