Government rolls out wide-ranging initiatives to boost exports and strengthen domestic manufacturing

K N Mishra

    20/Aug/2025

What’s Covered Under the Article:

  • Government boosts exports through FTAs, export incentives, trade promotion and digital regulatory platforms, with special focus on MSMEs and new global markets.

  • Domestic manufacturing strengthened via Production Linked Incentive (PLI) schemes in 14 strategic sectors, generating jobs, reducing import dependence and expanding global supply chain participation.

  • Logistics and infrastructure initiatives such as PM Gati Shakti, National Logistics Policy and National Industrial Corridors reduce costs and improve connectivity, complemented by DEH and E-Commerce Export Hubs to support small businesses.

The Government of India has undertaken a robust and comprehensive set of measures aimed at expanding the country’s export base and strengthening domestic manufacturing capability, with particular emphasis on supporting Micro, Small and Medium Enterprises (MSMEs) so that they can actively participate in global value chains and become leading contributors to the country’s economic development.

Export Promotion and Expansion of Market Access

Recognising that export growth remains one of the key drivers of sustained economic progress, the government has implemented a series of targeted policy interventions:

  • Export Incentive Schemes such as RoDTEP (Remission of Duties and Taxes on Exported Products) and RoSCTL (Rebate of State and Central Taxes and Levies) are being actively used to improve price-competitiveness of Indian products in overseas markets.

  • Trade Promotion Events and International Trade Fairs are organised in collaboration with export councils and industry associations to help MSMEs showcase their products and network with global buyers.

  • Digital Facilitation Platforms including improved DGFT portals and electronic customs systems are helping to streamline regulatory compliance, reduce paperwork and speed up export clearances.

Free Trade Agreements and Global Integration

Expanding export markets through Free Trade Agreements (FTAs) is also a key policy priority. A significant milestone in this regard has been the signing of the Comprehensive Economic and Trade Agreement (CETA) with the United Kingdom on 24 July 2025. This agreement is expected to provide Indian exporters preferential access to the U.K. in sectors such as textiles, pharmaceuticals, automobiles and services.
Negotiations are also currently underway with the European Union for a comprehensive FTA, which the Government expects to conclude by the end of 2025. This will further expand access to high-value markets and deepen India’s integration with global supply chains.

PLI Schemes: Boosting Domestic Manufacturing

On the domestic front, the Government has rolled out Production Linked Incentive (PLI) Schemes, covering 14 high-impact sectors, including:

  • Electronics and Semiconductor Manufacturing

  • Pharmaceuticals and Bulk Drugs

  • Solar PV Modules

  • Automobiles and Auto Components

  • Advanced Chemistry Cells (ACC)

  • Telecom Equipment

These schemes offer performance-based incentives to companies that manufacture in India, which has resulted in large-scale investments, increased capacity creation and employment generation. One of the most visible success stories under the PLI has been in the electronics sectormobile phone exports have surged from ₹1,500 crore in FY 2014–15 to over ₹2,00,000 crore in FY 2024–25, making India the world’s second-largest mobile phone manufacturer.
Similarly, the pharmaceutical PLI scheme has helped the country reduce its dependence on imports and emerge as a net exporter of bulk drugs and medical devices.

Logistics and Infrastructure Reforms

In parallel, the Government has launched major initiatives to reduce logistics costs and improve supply chain efficiency, including:

Initiative Key Focus
PM Gati Shakti Multimodal connectivity, infrastructure coordination
National Logistics Policy (NLP) Cost reduction, digital logistics platforms, ease of movement
National Industrial Corridor Development Programme (NICDP) Setting up integrated, globally competitive industrial and logistics hubs

These initiatives are designed to remove bottlenecks, integrate smart technology solutions into logistics, and connect industries to ports, highways, and dedicated freight corridors, enabling faster turnaround times and improving export competitiveness.

Grassroots Export Ecosystem: Empowering MSMEs and Start-ups

To ensure inclusive export growth, the Government has also implemented Districts as Export Hubs (DEH) and E-Commerce Export Hubs (ECEHs). These initiatives:

  • Identify and nurture unique products and niche industries at the district level;

  • Provide capacity-building and market intelligence to local manufacturers and artisans;

  • Enable small businesses and start-ups to export via digital marketplaces and e-commerce platforms, bypassing traditional export barriers.

Conclusion

Together, these interconnected measures reflect a comprehensive and forward-looking strategy focused on:

  • Strengthening domestic manufacturing capacity

  • Creating high-quality employment opportunities

  • Integrating India into global markets through FTAs

  • Reducing logistics costs and improving infrastructure

  • Enabling MSMEs, start-ups and district-based exporters to access global opportunities

By coupling global market access with domestic capacity creation, the Government is building a resilient, export-driven economy and steadily bolstering India’s position as a major player in global supply chains.


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