Manufacturers in Gujarat, particularly in the ceramic, chemical, and garment sectors, are facing severe stress due to the rigid rules of the Export Promotion Capital Goods (EPCG) scheme. While the scheme allows duty-free import of capital machinery, companies are struggling to maintain their Average Export Obligation (AEO) baselines amidst global recessions, high freight costs, and import disruptions. Exporters argue that enforcing historical average export requirements during economic downturns penalizes past success and locks up vital working capital due to delays in receiving Discharge Certificates (EODCs). On the international front, the US has officially set the clock ticking on its new law, giving the USTR 30 days to identify target countries and recommend tariff rates up to 100%. Trade experts from GTRI warn that Washington may use the threat of maximum tariffs as leverage to force India into accepting uneven bilateral trade terms or significantly scaling down its Russian energy reliance. In response, the Indian government re-emphasized its firm commitment to national energy security for its 1.4 billion citizens.