YOJANA April 2025

Current Trends in India’s Exports

Significance of Export-Led Growth

Challenges to Export Growth

Government Initiatives

1. Policy and Financial Support

• PLI Schemes across 14 sectors including electronics, EVs, and pharma.
• Export Promotion Mission with ₹2,250 crore to address NTBs and enhance export financing.
• PM Gati Shakti for integrated multimodal logistics infrastructure.

Strategies for Enhancing Export Competitiveness

Conclusion

To unlock its export potential, India must adopt a multi-dimensional strategy: modernising infrastructure, diversifying products and markets, empowering MSMEs, and aligning with Industry 4.0. By addressing supply-side bottlenecks, ensuring regulatory convergence, and leveraging its young workforce, India can emulate the success of nations like South Korea and Vietnam. Policy coherence, global adaptability, and sustainable practices will be crucial in making India a reliable and resilient export engine for the world.

Progressive Trends & Strategic Initiatives

FDI Liberalization & Ease of Doing Business

Ripple Effects on the Economy

Infrastructure & Industrial Capabilities

• Semiconductor Mission: ₹76,000 crore outlay; TATA Group & Micron setting up fabrication plants.
• Mega Infra Push:
• PM Gati Shakti, NIP (₹111 lakh crore), High-Speed Rail, Expressways, Green Energy Corridors.
• RE Sector: India is the 4th largest in RE capacity globally, targeting 500 GW by 2030.

Challenges

• Geopolitical Volatility: Supply chains disrupted by wars and decoupling.
• Structural Reforms Pending:
• Land acquisition and labor code implementation face state-level resistance.
• Judicial delays in contract enforcement.
• Skill Gaps: In AI, green hydrogen, semiconductors.

Way Forward for Viksit Bharat @2047

1. Boost R&D Spending: From 0.7% to at least 2% of GDP
2. Integrated Skill Mapping: Align education with future-ready skills (AI, climate tech, robotics).
3. Sustainable Growth Models: Accelerate green finance, carbon credit trading, ESG compliance.
4. Deepen Global Trade: Finalize FTAs with EU, UK; strengthen G20 and IPEF leadership.
5. Institutional Stability: Predictable policy, contract enforcement, and transparency.

Conclusion

India’s transformation into a global investment haven is not merely a result of favorable demography, but of deliberate policy calibration, visionary leadership, and stakeholder synergy. If India sustains its reform momentum, invests in human capital, and leverages its geopolitical centrality, the Viksit Bharat 2047 vision is well within reach. It could very well mark India’s arrival not just as an economic giant, but as a decisive force in shaping global economic governance.

Key Reforms and Their Implications

4. India Post Payment Bank (IPPB) Expansion

IPPB plays a pivotal role in financial inclusion by leveraging 2 lakh postmen/Gramin Dak Sevaks to offer banking services in over 1.36 lakh post offices.

As a result, India’s Financial Inclusion Index (FI-Index) has improved from 53.9 in 2021 to 64.2 in 2024. This initiative has significantly enhanced rural access to savings, insurance, and pensions, but challenges remain in improving last-mile connectivity and digital literacy.

Challenges and the Way Forward

Key challenges include finding a regulatory balance that ensures foreign insurers fulfill rural coverage obligations while maintaining competition.

• There is also a need for skill development to match the growing demand for AI-related roles, especially in cybersecurity for the insurance sector.
• Transparent risk-assessment frameworks must be implemented by NaBFID for infrastructure financing.
• Additionally, inclusive policies such as combining GST reductions with targeted subsidies will help mitigate the potential revenue losses from lower taxes.

Conclusion

India’s financial reforms are essential for achieving a $10 trillion economy by 2047. By focusing on increasing FDI, leveraging technology, and enhancing financial inclusion, these policies aim to close significant gaps in insurance penetration, rural credit access, and infrastructure financing. The success of these reforms depends on their effective implementation, collaboration across stakeholders, and adaptive regulation. These measures will not only accelerate India’s economic growth but also ensure equitable, resilient, and sustainable development, fulfilling the vision of ‘Sabka Saath, Sabka Vikas.’

1. National Manufacturing Mission (NMM)

• Goal: Increase the manufacturing GDP share from 16-17% to 25% by 2030, bringing it in line with global leaders like China (28%) and South Korea (25%).

Focus Areas: The mission emphasizes improving the ease of doing business, enhancing skills development, supporting MSMEs, providing technology access, and ensuring product quality.

• Sustainability Focus: Promotes clean technologies (solar PV, EVs, and batteries) and circular economy practices to reduce environmental impact.
• Trade Deficit Target: Aims to reduce the $250 billion trade deficit by ramping up local production of high-demand goods such as semiconductors and solar panels.

2. Fiscal and Policy Reforms

• Customs Duty Exemptions:
• BCD Waivers on critical minerals like lithium and cobalt, and shipbuilding inputs to reduce production costs and attract foreign investment.
• Smartphone Components: The removal of a 2.5% import duty to position India as a global electronics manufacturing hub.
• Simplified Tax Structure: Introduction of a single cess/surcharge to make the tax system more predictable for investors.

3. Production-Linked Incentive (PLI) Scheme Expansion

• Sectors Covered: Expanded to 14 key sectors, including electronics, automobiles, and textiles.
• Allocations:
• Electronics/IT: ₹8,885 crore.
• Automobiles: ₹2,819 crore for EV component manufacturing.
• Impact: Positioned India as the 2nd-largest mobile phone producer globally, driving significant growth in manufacturing output.

4. MSME Support

• Contribution to Economy: MSMEs account for 35% of manufacturing output, 30% of GVA, and provide employment to 25.18 crore people.
• Credit Support:
• Guarantee limit raised to ₹10 crore for micro and small enterprises (from ₹5 crore).
• ₹1.5 lakh crore additional credit over 5 years.
• Entrepreneurship Focus: ₹2 crore loans for 5 lakh first-time entrepreneurs, with special emphasis on women, SC/ST communities.

5. Labour-Intensive Sectors

• Leather and Footwear: A target to create 22 lakh jobs, with exemptions on BCD for crust and wet blue leather
• Textiles:
• Launch of Cotton Productivity Mission for high-quality staple varieties.
• A 57.7% budget increase (₹5,272 crore) for textiles.
• Toys: Focus on increasing domestic manufacturing hubs to reduce dependency on China, which accounted for 64% of toy imports in FY24.

6. Export Promotion & Digital Infrastructure

• Export Promotion Mission: ₹2,250 crore allocated to enhance credit access, address non-tariff barriers, and promote cross-border factoring.
• Bharat TradeNet (BTN): A unified digital platform for streamlining trade documentation and reducing non-tariff barriers, fostering smoother trade operations.

7. Infrastructure & Research & Development

• Logistics: Investments in upgrading air cargo infrastructure, particularly for perishables.
• R&D Fund: ₹20,000 crore allocated for AI, semiconductors, renewable energy, and Industry 4.0.
• SEZ Reforms: The new DESH legislation will replace existing SEZs, enabling faster customs clearances and facilitating state partnerships.

8. Sustainable Growth

• Emphasis on green manufacturing practices, including investments in electric vehicles (EVs) and solar technologies, while improving resource efficiency across industries.

Conclusion

The Union Budget 2025-26 lays out a strategic framework to strengthen India’s manufacturing base, boost exports, enhance MSME capabilities, and align with global sustainability trends. By prioritizing domestic production, fiscal incentives, and robust infrastructure, India aims to position itself as a leading global manufacturing hub and a $5 trillion economy.

Revised National Programme for Dairy Development (NPDD):

The Union Cabinet approved the Revised National Programme for Dairy Development (NPDD) for the period 2021-2026.

• The scheme focuses on modernizing dairy infrastructure, enhancing milk procurement, processing, and quality control, aimed at improving farmers’ access to markets, better pricing, and supply chain efficiency.
• It consists of two components: Component A enhances dairy infrastructure, especially in remote areas, while Component B fosters dairy cooperatives with the help of Japan’s cooperation.
• The NPDD has already benefitted over 18.74 lakh farmers, creating 30,000 jobs, and increasing milk procurement capacity by 100.95 lakh liters/day.
• It also upgraded 51,777 village-level milk testing labs and installed 5,123 bulk milk coolers. The revised scheme is expected to establish 10,000 new dairy cooperatives, generate 3.2 lakh jobs, and strengthen rural livelihoods, supporting White Revolution 2.0.

Revised Rashtriya Gokul Mission (RGM)

The Union Cabinet approved the Revised Rashtriya Gokul Mission (RGM) with an enhanced allocation of Rs 3,400 crore for the 2021-2026 period.

• Key additions include 35% capital assistance for Heifer Rearing Centres (30 facilities, 15,000 heifers) and 3% interest subvention on loans for purchasing High Genetic Merit (HGM) IVF heifers.
• The scheme strengthens semen stations, artificial insemination, bull production, and breed improvement. Over the past decade, milk production has increased by 63.55%, and milk availability per person has risen from 307 grams/day (2013-14) to 471 grams/day (2023-24).
• The Nationwide AI Programme has covered 8.39 crore animals and benefitted 5.21 crore farmers. The mission also focuses on preserving indigenous bovine breeds through genomic chips and IVF technology, boosting milk productivity and farmers’ incomes.

AIKosha

• AIKosha, also known as the IndiaAI Datasets Platform, is a secured repository designed to foster AI innovation in India. It offers access to over 300 datasets and 80 AI models for a wide range of applications.
• The platform features an AI sandbox with an integrated development environment (IDE), tools, and tutorials to support AI research and development.
• Key datasets available include the 2011 Census data, satellite imagery from Indian satellites, Open Governance Data, health data, and meteorological and pollution data, facilitating diverse AI solutions for various sectors.
• This initiative aims to empower developers, researchers, and organizations by providing reliable data for AI-driven innovation.

Jaipur 3R and Circular Economy Declaration (2025–2035)

At the 12th Regional 3R and Circular Economy Forum in Jaipur, Asia-Pacific nations adopted the Jaipur Declaration (2025–2035), aiming for a circular, low-carbon, and resource-efficient economy.

• The declaration promotes 3R principles—Reduce, Reuse, Recycle, aligns with global frameworks like the SDGs, Paris Agreement, and Kunming-Montreal Biodiversity Framework, and builds on the Hanoi 3R Declaration (2013–2023).
• Key outcomes include India’s proposal for the Cities Coalition for Circularity (C-3) to foster collaboration and knowledge-sharing, a working group for its operational framework, and an MoU under CITIIS 2.0 for circular projects in urban areas. Focus areas include tackling the triple planetary crisis (climate change, biodiversity loss, pollution), boosting resource efficiency, and promoting local industry and employment.

Maritime Reforms 2025

The government has launched major maritime reforms, including the ‘One Nation-One Port Process (ONOP)’, aimed at standardizing operations across all major ports to boost efficiency, reduce logistics costs, and improve ease of doing business.

• The Bharat Global Ports Consortium was announced to enhance global trade resilience and support ‘Make in India’ exports. The MAITRI platform (Master Application for International Trade and Regulatory Interface), leveraging AI and Blockchain, will facilitate a seamless Virtual Trade Corridor.
• Additionally, India Maritime Week 2025 will be held in Mumbai from October 27–31, expecting 1,00,000 delegates from 100 countries, highlighting India’s maritime ambitions.

India's First Semiconductor Fab

India’s first commercial semiconductor fabrication unit will be set up in Dholera, Gujarat, under a Fiscal Support Agreement (FSA) between India Semiconductor Mission (ISM) and Tata Electronics.

• The project, valued at over Rs 91,000 crore, will receive 50% fiscal support from the Indian government. Backed by Taiwan’s PSMC, the fab will manufacture chips for sectors like automotive, computing, AI, and communication, and is expected to generate over 20,000 jobs.
• This initiative marks a major leap in India’s journey toward technological self-reliance and semiconductor supply chain resilience.

Khelo India Para Games 2025

The 2nd edition of Khelo India Para Games (KIPG) will be held in New Delhi from March 20–27, 2025, featuring 1,230 para-athletes across six disciplines.

• The event will see participation from top Indian para-athletes, including Paris 2024 Paralympics and 2022 Asian Para Games medallists like Harvinder Singh (archery), Dharambir (club throw), and Praveen Kumar (high jump).