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Date: 2025-08-19 Category: Not Applicable State: Union Government Country: India

Government Implements Comprehensive Measures to Boost Exports and Strengthen Domestic Manufacturing

Issued by Ministry of Commerce and Industry · Not Applicable

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Executive Summary & Key Takeaways

**Policy Summary: Comprehensive Measures to Boost Exports and Strengthen Domestic Manufacturing** The Government of India, under the Ministry of Commerce and Industry, is implementing a series of comprehensive measures aimed at transforming India into a global export hub and strengthening domestic manufacturing capabilities. Key initiatives include Production Linked Incentive (PLI) schemes, logistics reforms, and the development of district export hubs. A significant component of this strategy is the expansion of market access through Free Trade Agreements (FTAs). India signed the Comprehensive Economic and Trade Agreement (CETA) with the United Kingdom on July 24, 2025, and negotiations are ongoing for the India-European Union Free Trade Agreement, with the goal of concluding discussions by the end of the year. To bolster domestic manufacturing, Production Linked Incentive (PLI) schemes have been implemented for 14 key sectors, including Electronics, IT hardware, Pharmaceuticals, Bulk Drugs, High-Efficiency Solar PV Modules, Automobiles & Auto Components, White Goods, and Telecom & Networking Products. These schemes have incentivized domestic manufacturing, resulting in increased production, job creation, and export growth, while also attracting significant domestic and foreign investment. For example, under the PLI scheme for medical devices, 21 projects have started manufacturing 54 unique medical devices. Also, the export of mobile phones has increased from Rs. 1,500 crore in 2014-15 to over Rs. 2 lakh crore in 2024-25. Logistics efficiency is being addressed through the National Logistics Policy (NLP) and PM Gati Shakti initiatives, designed to streamline the movement of goods and people by addressing bottlenecks, improving coordination, and leveraging technology. The National Industrial Corridor Development Programme (NICDP) is also underway to establish globally competitive manufacturing hubs with robust connectivity. At the grassroots level, the "Districts as Export Hubs" (DEH) initiative and E-Commerce Export Hubs (ECEHs) are designed to enable SMEs, including startups, to compete globally. District Export Action Plans have been prepared for 590 districts, identifying products and services with export potential and addressing supply chain bottlenecks. The ECEHs initiative aims to facilitate cross-border e-commerce exports by providing integrated services such as customs clearance, quality certification, and off-port warehousing. Five ECEH pilot projects have been proposed for implementation. DGFT issued Trade Notice No. 14/2025 dated 22.08.2024, inviting detailed proposals for these pilots. These initiatives have yielded positive results, including a decline in import dependency and a boost in exports across several sectors. The PLI scheme has contributed to India becoming a net exporter of bulk drugs (Rs. 2280 cr), in contrast to being a net importer (Rs. 1930 cr) in FY 2021-22. In the pharmaceuticals sector, cumulative sales of Rs.2.66 lakh crore which includes exports of Rs.1.70 lakh crore were achieved in the first three years of the scheme. This information was provided by the Minister of State for the Ministry of Commerce and Industry, Shri Jitin Prasada, in a written reply in the Lok Sabha.

Key Entities Referenced

Production Linked Incentive PLI schemes: Government schemes implemented for 14 key sectors to strengthen domestic manufacturing and export capabilities. Comprehensive Economic and Trade Agreement CETA: A trade agreement signed between India and the United Kingdom to boost bilateral trade relations. IndiaEuropean Union Free Trade Agreement: Ongoing negotiations for a free trade agreement between India and the European Union. National Logistics Policy NLP: A landmark initiative designed to streamline the movement of goods and people by addressing bottlenecks, improving coordination among various stakeholders, and leveraging technology for smarter logistics management. PM Gati Shakti: An initiative designed to streamline the movement of goods and people by addressing bottlenecks, improving coordination among various stakeholders, and leveraging technology for smarter logistics management. National Industrial Corridor Development Programme NICDP: A transformative initiative aimed at establishing globally competitive manufacturing hubs with robust connectivity to domestic and international markets. Districts as Export Hubs DEH: A grassroots initiative enabling SMEs, including startups, to compete globally through reduced costs and simplified regulations by promoting exports from districts. ECommerce Export Hubs ECEHs: An initiative that aims to provide dedicated zones for facilitating crossborder ecommerce exports from India.
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Ministry of Commerce & Industry Government Implements Comprehensive Measures to Boost Exports and Strengthen Domestic Manufacturing PLI Schemes, Logistics Reforms, and District Export Hubs Driving India’s Transformation into a Global Export Hub Posted On: 19 AUG 2025 2:55PM by PIB Delhi It is the constant endeavour of the Government to boost India’s exports including promoting of MSME participation in global trade though export incentives, trade promotion events, and digital platforms to streamline processes. A major thrust has been placed on expanding market access through Free Trade Agreements (FTAs). Notably, India signed the Comprehensive Economic and Trade Agreement (CETA) with the United Kingdom on 24th July 2025, marking a significant milestone in bilateral trade relations. Meanwhile, negotiations for the India-European Union Free Trade Agreement is ongoing with an aim to conclude by end of the year. To strengthen domestic manufacturing and export capabilities, the Government has implemented Production Linked Incentive (PLI) schemes for 14 key sectors including Electronics, IT hardware, Pharmaceuticals, Bulk Drugs, High-Efficiency Solar PV Modules, Automobiles & Auto Components, White Goods, Telecom and Networking Products to enhance India's Manufacturing capabilities and Exports. These schemes have incentivized domestic manufacturing, leading to increased production, job creation, and a boost in exports. They have also attracted significant investments from both domestic and foreign players. To enhance the efficiency of logistics and reduce associated costs across the country, the Government of India has launched landmark initiatives of National Logistics Policy (NLP) and PM Gati Shakti designed to streamline the movement of goods and people by addressing bottlenecks, improving coordination among various stakeholders, and leveraging technology for smarter logistics management. The PM Gati Shakti National Master Plan plays a pivotal role in the integrated development of multimodal infrastructure to ensures seamless connectivity, faster transportation, and optimized resource utilization for boosting economic productivity and exports. Complementing these efforts is the National Industrial Corridor Development Programme (NICDP), a transformative initiative aimed at establishing globally competitive manufacturing hubs with robust connectivity to domestic and international markets. These corridors are envisioned to catalyse industrial growth, attract investments, generate employment, and position India as a key player in global supply chains. Moreover, technology tools like Logistics Data Bank have improved transparency and efficiency. Together, these initiatives represent a strategic vision to modernize India’s logistics ecosystem and industrial base, fostering long-term economic growth and global competitiveness. Grassroots initiatives such as Districts as Export Hubs (DEH) and E-Commerce Export Hubs (ECEHs) are enabling SMEs including start-ups to compete globally through reduced costs and simplified regulations. The Government has taken measures to promote exports from the districts under the Districts as Export Hubs Initiative. It includes identification of the products and services with export potential in allthe districts of the country in consultation with all stakeholders including the States/UTs. An institutional mechanism has been set up in all States/UTs by forming the State Export Promotion Committee (SEPC) and District Export Promotion Committee (DEPC) at the District level. Under the initiative, District Export Action Plans detailing the existing bottlenecks in the supply chain and identifying possible interventions to mitigate the existing gaps have been prepared for 590 districts and are being prepared for the rest of the districts. The E-Commerce Export Hubs (ECEHs) initiative, aims to provide dedicated zones for facilitating cross-border e-commerce exports from India. The objective is to support SMEs, artisans, and small businesses by reducing the cost and time associated with logistics, streamlining regulatory processes, and simplifying re-imports for e-commerce returns or rejects. ECEHs shall provide integrated services at a single location, encompassing customs clearance, quality certification, packaging, and off-port warehousing. DGFT has issued Trade Notice No. 14/2025 dated 22.08.2024, inviting detailed proposals for these pilots. Five ECEH pilot projects have been proposed for implementation. The initiatives taken by the Government have led to decline in dependency on imports and boosting exports in several sectors. For example, under the PLI Scheme for medical devices, 21 projects have started manufacturing of 54 unique medical devices, which include high end devices such as Linear Accelerator (LINAC), MRI, CT-Scan, Heart Valve, Stent, Dialyzer Machine, C-Arm, Cath Lab, Mammograph, MRI Coils, etc. Further, the PLI Scheme for Large Scale Electronics Manufacturing has significantly impacted Mobile manufacturing sector in India particularly in transforming India from a net importer to a net exporter of mobile phones. The export of mobile phones has increased from Rs. 1,500 cr in 2014-15 to more than Rs. 2 lakh cr in 2024-25. Bharat is now the second largest mobile manufacturing country in the world. In addition, the pharmaceuticals sector has witnessed cumulative sales of Rs.2.66 lakh crore which includes exports of Rs.1.70 lakh crore achieved in the first three years of the scheme. The scheme has contributed to India becoming a net exporter of bulk drugs (2280 cr.) from net importer (-1930 cr.) as was the case in FY 2021-22. It has also resulted in significant reduction in gap between the domestic manufacturing capacity and demand of critical drugs. This information was given by the Minister of State for the Ministry of Commerce & Industry, Shri Jitin Prasada in a written reply in the Lok Sabha today. *** Abhishek Dayal/ Abhijith Narayanan/ Ishita Biswas (Release ID: 2157870)

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