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India's Port Pile-Up
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Good Morning. At Chennai port, a $23,000 shipment of body massagers sits idle. If the owner of the company that imported these massagers is to be believed, it’s another casualty of India’s tangled import regime. While ministries change their rules often, customs officers spend time making sense of them. The result is delayed shipments and rising costs for India’s traders. Execution of government rules is a pain point for traders.
India’s benchmark indices fell on Monday, after rising for two consecutive sessions. This was because after US president Donald Trump threatened more tariffs on China. The BSE Sensex closed at 82,327.05, falling 173.77 points or 0.21%. The NSE Nifty50 closed at 25,227.35, falling 58 points or 0.23%.
In other news, India’s retail inflation was at an eight-year low in September. Meanwhile, Satish Dondapati, fund manager, ETF at Kotak Asset Management Company, tells us why you shouldn’t invest in silver because of FOMO.
DECODE THE NEWS
When Every Clearance Needs a Clearance: Inside India’s Broken Import System
What?
When a 40-foot container of battery-powered body massagers reached Chennai port on August 12, the importer expected it to be out in two days. Instead, the shipment worth about $23,000 is still sitting there.
By October, Wintrack Inc. had had enough. The company announced on X (formerly Twitter) that it was shutting down its import and export business in India altogether, alleging harassment by customs officials and a 45-day clearance delay.
“We’ve been importing body massagers from China since January, but this is the first time a shipment has been stuck this long,” said Prawin Ganesha, Wintrack’s founder. “Officers even asked for bribes to release our goods.”
What changed? Not the product. The paperwork.
Customs suddenly demanded an Extended Producer Responsibility (EPR) certificate — a relatively new environmental compliance meant to make producers and importers responsible for the waste their products create.
Wintrack applied to the Central Pollution Control Board (CPCB), but until the certificate arrives, all new shipments are on hold. “We can’t afford to have more containers locked up at the port,” Prawin said.
Why?
On paper, India’s customs process is sleek and digital. Bills of entry are filed via the Indian Customs Electronic Data Gateway (ICEGATE), India's national electronic portal for all customs-related services, routed through the Risk Management System (RMS) or faceless assessment.
In theory, clearance takes a day or two.
In reality, “faceless” can mean endless. Importers often don’t know which officer is handling their file, what stage it’s in, or when they’ll hear back.
For Wintrack, the system didn’t fail because of wrong classification codes or missing invoices. It failed because a rule that was never enforced before suddenly became non-negotiable. “There aren’t separate clearance rules for battery or non-battery products,” Prawin explained. “Only additional compliances, if needed.”
That “if needed” is where interpretation — and discretion.
How did a well-meaning green rule become India’s next big trade bottleneck?
CONNECT THE DOTS
Silver Rush: Festival Demand Messing With AMCs & Investors
What?
As gold prices rose to astronomical heights, silver seems to have become the new safe haven asset that most investors are chasing. It has triggered a silver rush so intense that Kotak Mutual Fund temporarily suspended lump sum and switch-in subscriptions in its silver ETF Fund of Fund (FoF) as on October 9. Axis Mutual Fund and Tata Silver also did the same with their ETF FoFs on October 13. They are unusual moves as funds rarely cancel inflows.
Last month, silver ETF demand zoomed to as much as Rs 6,416 crore, which is thrice the inflow seen in August at Rs 2,180 crore, as per data from the Association of Mutual Funds in India (AMFI).
Why?
Explaining the phenomenon, Satish Dondapati, fund manager ETF at Kotak Asset Management Company (AMC), said that the demand is so huge that they’re unable to bring in the physical silver that’s needed for these exchange traded funds (ETFs).
Silver ETFs are backed by physical silver. Ideally, the AMC which issues ETFs has to provide physical silver on the very same day to the exchange, or store it in the vault. This delivery is necessary for the silver units to be created on the demat account of the buyer.
What Next?
While it has given spectacular returns as of now, silver has been named as the ‘devil’s metal’ due to extreme volatility in prices. Investors must be aware of the dangers, warned experts. For example, the current premiums seen in the market might not last.
“In a hurry, most of the investors normally see that if a silver price goes up as a FOMO (Fear Of Missing Out) thing, people get invested, they will not see what the price is,” said Dondapati.
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CORE NUMBER
Rs 15,000 crore
That’s how much Foxconn, the Taiwanese electronics giant, will be investing in Tamil Nadu, creating 14,000 jobs, according to a post on X by State Industries Minister TRB Rajaa. This investment will focus on AI-led advanced tech operations, value-added manufacturing, and R&D integration.
Origin: This isn’t Foxconn’s first foray into Tamil Nadu. The company’s Sriperumbudur plant has been operational for several years, initially assembling phones for brands like Xiaomi, InFocus, and Nokia (under HMD Global). It currently assembles iPhones for Apple there too. Foxconn is also in talks with the state to set up a display module plant and a battery storage plant.
By the Numbers: In Q2 2025, India overtook China as the top iPhone exporter to the US market. Apple also hit a record $10 billion (Rs 88,730 crore) in iPhone exports from India in H1 2025—a 75% jump from the same period last year.
Critical Moment: Critics note, however, that Foxconn’s operations in India remain largely focused on final assembly. Most components are still imported from China or elsewhere, which limits both the depth of value addition and the scale of job creation.
FROM THE PERIPHERY
Inflation Hits Lows.
India’s retail inflation eased sharply to 1.54% in September from 2.07% in August, marking the lowest Consumer Price Index (CPI) inflation since June 2017, as per Ministry of Statistics & Programme Implementation data. A favourable base effect and falling prices of vegetables, oils, fruits, pulses, cereals, and fuel drove the decline.
By The Numbers: Food inflation remained in the negative at -2.28%, the lowest since December 2018, with rural at -2.17% and urban at -2.47%. Among states, Kerala saw the highest inflation at 9.05%, while Uttar Pradesh recorded deflation at -0.61%.
Flashpoint: In urban areas, housing inflation rose to 3.98%, while education and health eased slightly to 3.44% and 4.34%, respectively. Transport and communication inflation moderated to 1.82%, and fuel and light prices softened to 1.98%, reflecting broad price relief across most categories. “Although food prices remain in check so far, the impact of excess rains in major kharif crop-producing states on agricultural production will bear watching,” said Dharmakirti Joshi, chief economist at Crisil.
Deals Over Duties.
India and the United States will restart trade talks this week in Washington after negotiations were suspended in August, when the US imposed tariffs of up to 50% on Indian goods, according to a Reuters report.
Break: The duties led to a fall in Indian exports, from $8.01 billion in July to $6.86 billion in August, increasing pressure on both sides to return to the table.
Setting: Officials hope to conclude the first phase of a trade deal by next month, with energy expected to be a key focus. India has pledged to boost imports of US oil and LNG to ease concerns over its continued purchases of Russian crude. Washington is seeking greater market access, while New Delhi is open to deeper US participation in its renewable and nuclear sectors.
Steel Demand Slumps.
India’s small steelmakers are cutting output as weak demand, high inventories, and falling prices expose a slowdown in construction activity, Reuters reported. The recent Goods and Services Tax (GST) cuts were meant to boost demand in steel-linked sectors like construction and automobiles, but the impact has yet to materialise.
Fast Facts: The economy grew 7.8% in April–June, but steel demand has dropped since July as heavy monsoon rains stalled construction, which consumes a third of India’s steel. Small producers, who make up 45% of India’s 200 million-ton capacity, say they’ve reduced production by up to 30%.
What’s Next? Hot-rolled coil prices fell to a six-month low of Rs 49,144 per ton in September. Industry players expect weak demand to persist until December, with automakers yet to respond to GST cuts and trade tariffs still hurting consumer-linked industries.
Telco Fate Hangs.
The Supreme Court has postponed hearing Vodafone Idea’s plea on adjusted gross revenue (AGR) dues, with the next session now scheduled for October 27. The telecom operator is seeking relief on interest, penalties, and interest on penalties, arguing that a Rs 5,606 crore demand for FY2016-17 is unjustified because earlier dues were already settled under the court’s 2020 ruling.
The Scoop: Investors reacted negatively to the delay, and the company’s shares fell about 2%.
Critical Moment: Vodafone Idea, already burdened by mounting debt and heavy losses, faces the risk of deeper financial distress if courts force it to pay these dues.
THE CORE QUIZ (Answers)
Question 1: Ultra-luxury / super-premium (Rs 5+ crore)
Question 2: 1997 and December 2025
Question 3: Biometrics like fingerprint or facial recognition
PODCASTS
Are IPO Listings Becoming More Muted?
On Episode 702 of The Core Report, financial journalist Govindraj Ethiraj talks to Nachiket Mor, Former banker and Visiting Scientist at Banyan Academy of Leadership in Mental Health.
Are IPO listings becoming more muted?
Silver sees historic short squeeze in London as gold prices continue to rise
Inflation down to 8 year low of 1.54%
Global airlines are facing an additional $11 billion in costs because of challenges in aerospace supply chains and how that is affecting airlines and thus travel
World Mental Health Day was last week. Why mental health and stress need to be tackled separately
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