Lok Sabha Question No. 4243 (UNSTARRED), answered on 2025-08-19
Subject: Boosting Exports
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri Zia Ur Rehman

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE AND INDUSTRY DEPARTMENT OF COMMERCE

## LOK SABHA UNSTARRED QUESTION NO. 4243 ANSWERED ON 19/08/2025

## BOOSTING EXPORTS

## 4243.   SHRI ZIA UR REHMAN

Will the Minister of COMMERCE AND INDUSTRY ( वाणिज्य एवं उद्योग मंत्री ) be pleased to state:

- (a) whether the Government is aware of the current challenges in boosting exports due to global trade disruptions, delays in concluding key FTAs, limited MSME participation in global markets, and rising logistics and compliance costs;
- (b) if  so,  the  steps  being  taken  to  expedite  FTAs  with  the  UK  and  EU,  expand  export capacity  through  PLI  schemes,  improve  infrastructure  under  the  National  Logistics Policy,  promote  e-commerce  exports  and  support  MSMEs  and  startups  through schemes like Districts as Export Hubs; and
- (c) if not, the reasons therefor?

## ANSWER

वाणिज्य एवं उद्योग मंत्रालय में राज्यमंत्री ( श्री णिणिन प्रसाद ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY

## (SHRI JITIN PRASADA)

(a) to (c): 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 all the 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.

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