Lok Sabha Question No. 4111 (UNSTARRED), answered on 2026-03-17
Subject: Improving Market Access
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri Navaskani K

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

## UNSTARRED QUESTION NO. 4111. TO BE ANSWERED ON TUESDAY, THE 17 TH  MARCH, 2026.

## IMPROVING MARKET ACCESS

## 4111.  SHRI NAVASKANI K:

Will the Minister of COMMERCE AND INDUSTRY वाणिज्य एवं उद्योग मंत्री

be pleased to state:

- (a) whether the Government has taken measures to develop the country's large domestic market to its optimum potential and to expand the reach of Indian products and services across global markets;
- (b) whether any strategy  has been formulated to strengthen domestic demand, improve market access, logistics, quality standards and export competitiveness;
- (c) whether the Government is aware that Tamil Nadu, with its strong manufacturing base, MSMEs, agri-processing and export-oriented industries, has  significant  potential  to  contribute  to  both  domestic  and  international markets;
- (d) if so, the details thereof;
- (e) the  steps  taken  to  support  enterprises  in  Tamil  Nadu  through  infrastructure development, cluster-based support, export facilitation and access to finance;
- (f) whether any sector-specific initiatives have been undertaken in the State to integrate local producers with national and global value chains, if so, the details thereof; and
- (g) the measures being taken to enhance market outreach, branding and trade promotion for products originating from Tamil Nadu?

## ANSWER

## वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री ( श्री णिणिन प्रसाद ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI JITIN PRASADA)

- (a) & (b): The Government has taken various initiatives to develop the country's large domestic market, supporting retail demand, improving market access, stimulating  overall  economic  growth,  improving  ease  of  doing  business, strengthening India's export competitiveness, enabling an ecosystem for skill development  and  job creation and  promoting infrastructure and urban development. Some of the initiatives are given below:
- i. Department for Promotion of Industry and Internal Trade (DPIIT) implements schemes for overall development of industrial sector such as Make in India, Start-up India, PM  GatiShakti, National Industrial Corridor Programme, Production Linked Incentive (PLI) Schemes, promoting  Ease  of Doing  Business  (EoDB)  and  reducing  compliance

burden,  Business  Reform Action  Plan  (BRAP),  National  Single  Window System  (NSWS),  India  Industrial Land  Bank,  Project  Monitoring  Group (PMG), liberalization of FDI policy, Indian Footwear and Leather Development  Programme  (IFLDP)  Schemes  and  Initiative  of Promotion of Geographical Indication etc. Additionally, skilling programs and regulatory reforms created a flexible and efficient workforce, enhancing India's overall competitiveness in the international arena.

- ii. Free Trade Agreements (FTAs) entered into with concerned trading partner countries have a primary aim of increasing bilateral trade through enlarging the scope of market access, securing duty reductions and to build on the trade  complementarities  for  increasing  trade  and  investment,  thereby providing enhanced export potential and overall economic growth benefit to all the stakeholders. The Government  recently concluded  FTA negotiations with New  Zealand  and  the European  Union on 22 nd December, 2025 and 27 th  January, 2026 respectively. Also, India and the United States of America have announced on 7 th  February 2026 that the USA  and  India  have  reached  a  framework  for  an  Interim  Agreement regarding reciprocal and mutually beneficial trade (Interim Agreement).  Brief features of recent FTAs are provided in Annexure-I . For certain  selected  products,  to  meet  domestic  industry  and  consumer demand,  limited  market  access  has  been  provided  and  imports  are regulated through restricted and monitored Tariff Rate Quotas (TRQs) and other safeguard mechanisms, including Minimum Import Price, Seasonal windows  and  linked  Agricultural  Productivity  partnerships  for  assisting farmers  boost  agricultural  productivity.   This  approach  ensures  national interest while simultaneously boosting India's participation in global value chains.
- iii. A Scheme for Export Promotion Mission (EPM) has been approved with the objective of strengthening India's export competitiveness and providing targeted support to exporters, with particular focus on Micro, Small and Medium  Enterprises (MSMEs). The Mission operates through two integrated sub-schemes:
3.  NIRYAT PROTSAHAN, focused on improving access to trade finance through  instruments  such  as  interest  subvention,  export  factoring, collateral guarantees for export credit, credit for  e-commerce exporters, and credit enhancement support; and
4.  NIRYAT  DISHA,  focused  on  other  trade  enablers  such  as  export quality and compliance support, international branding and packaging, market access initiatives, export logistics & warehousing, and trade intelligence.
- iv. Bureau of Indian Standards (BIS), the erstwhile Indian Standards Institution (ISI), was declared the National Standards Body of the country by BIS Act, 2016.  The  Standardization  activity  is  undertaken  through  17  Division Councils, and more than 400 Sectional Committees comprising more than 17,000  domain  area  experts  covering diversified sectors like Civil, Mechanical, Electrotechnical, Chemical, Food, Electronics and IT etc. To formulate  the  quality  standards,  BIS  prepares  an  Annual  Programme of Standardization (APS) at the beginning of each financial year, based on multiple  rounds  of  consultations  with  Ministries/Departments,  industries, industry  associations,  BIS  licensees,  and  other  stakeholders  and  inputs from Standards National Action Plan (SNAP). The APS outlines both new subjects to be undertaken for standardization during the year and existing standards to be reviewed.
6. (c) to (g): Industry  is  a  state  subject.  However,  Central  Government  comes  out  with several initiatives and policies from time to time to promote industrialisation in various  parts  of  the  Country,  including  the  State  of  Tamil  Nadu. The  Union Government supplements the efforts of the State Governments through various schemes  launched  by  it  with  a  view  to  promote  industries.  Some  of  the measures are as under:
- i. "One District One Product (ODOP) is an initiative by the Department for Promotion of Industry and Internal Trade (DPIIT) with the aim to select, brand, and promote at least one product from each district of the country for enabling holistic growth across all regions. The selection of ODOP products  is  undertaken  by  the  respective  State/Union  Territory  (UT) Governments. The State Government of Tamil Nadu has identified 55 ODOP products (38 Primary, 15 Secondary, 02 tertiary products) from 38 districts of Tamil Nadu. Several steps have been undertaken to promote and enhance the visibility of products identified under the ODOP initiative. These steps include; facilitating participation in domestic and international exhibitions, capacity building initiatives in collaboration with various  agencies;  e-commerce  on-boarding  drives  for  Government  eMarketplace (GeM)- ODOP Bazaar which showcases and stocks India's best  ODOP  products.  For  promoting  ODOP  at  international  level, engagement with Indian Missions abroad, virtual buyer sellers meet and participation in international exhibitions have been undertaken.

The States/UTs are encouraged to establish PM Ekta Mall (Unity Mall) for the promotion and sale of ODOP products, Geographical Indication (GI) products, and other handicrafts from across the country. Department of Expenditure (DoE) has approved Detailed Project Reports' (DPRs) of 27 States including Tamil Nadu. For Tamil Nadu, DoE has allocated a budget of ₹ 223 crores for construction and operation of PM Ekta Mall at Chennai under the 'Scheme for Special Assistance to States for Capital Investment 2023-24 (SASCI) Part- VI (Unity Mall). The Government of Tamil Nadu has informed that it has included ODOP under its FaMe TN (Facilitating  Micro,  Small  and  Medium  Enterprises  (MSMEs)  of  Tamil Nadu)  scheme.  The  policy  supports  ODOP  producers,  artisans,  and MSMEs  through  financial  assistance,  skill  development,  infrastructure support, and market access initiatives to promote  district-specific products.  Assistance  includes  packaging  development,  barcoding,  QR codes,  EPC/RFID,  branding,  and  marketing  under  PM-FME.  Financial support is provided through subsidies for SME Exchange fund raising, participation  in  international  trade  fairs,  and  marketing  assistance  to MSME associations.

- ii. Department  of  Commerce  under  its  Market  Access  Initiative  (MAI) scheme  has  been  providing financial support to various Export Promotion Councils (EPCs) and Trade Bodies engaged for organizing and participating in Trade fairs, Exhibitions, Buyer Seller Meets etc.
- iii. The Department of Commerce is also implementing a scheme namely 'Trade  Infrastructure  for  Export  Scheme  (TIES)',  a  Central  Sector Scheme w.e.f. F.Y. 2017-18, with the objective of assisting Central and State Government agencies in the creation of appropriate infrastructure for growth of exports. Under the scheme, financial assistance in the form of grant-in-aid is provided to Central/State Government owned agencies for setting up or up-grading export infrastructure. The Scheme is for the period of 2021-22 to 2025-26 with a total outlay of Rs. 360 crore. Details of completed/ongoing projects in Tamil Nadu approved under the TIES are placed at Annexure-II .
- iv. The  Government  of  India  has  approved  the  Central  Sector  Scheme 'Indian Footwear and Leather Development Programme (IFLDP) with an allocation of Rs.1700 crore for the period 2021-26, concluding on 31st March, 2026. The scheme aims to lead to development of infrastructure for  the  leather  and  footwear  sector,  address  environment  concerns specific to the leather and footwear sector, facilitate additional investments, employment generation and increase in production. The projects approved under 6 sub-scheme of IFLDP for the state of Tamil Nadu is placed at Annexure-III .
- v. The Ministry of MSME is implementing the International Cooperation (IC) Scheme, under which financial assistance is provided on a reimbursement basis to eligible Central/State Government organizations and  industry  associations.  This  support  facilitates  the  participation  of MSMEs in international exhibitions, fairs, and buyer-seller meets abroad, and in organizing international conferences and seminars in India.
- iv. The  Districts  as  Export  Hubs  (DEH)  initiative  identifies  products  with export potential in each district, addresses supply-side constraints, and supports capacity building of local producers/exporters.
- vi. The  Trade  Connect  ePlatform  is  being  improved  upon  regularly  to provide comprehensive digital interface that connects Indian exporters with  Indian  Missions  abroad,  as  well  as  domestic  trade  promotion bodies, to offer support services and address trade-related queries.

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## ANNEXURE REFERRED TO IN REPLY TO PARTS (a) & (b) OF THE LOK SABHA UNSTARRED QUESTION NO. 4111 FOR ANSWER ON 17.03.2026.

Brief features of recent FTAs :

-  India-European Union (EU) FTA: Preferential Market Access on 96.8% of tariff lines which covers 99.5% of India's exports. 90.7% of exports (by trade value) to the EU to become duty-free on entry into force of the Agreement.
-  India-United States trade framework (announced 7 February 2026) with United States: India and the US have reached a framework for an interim agreement regarding  reciprocal  and  mutually  beneficial  trade.  The  U.S.  will  provide preferential  market  access  to  Indian  goods,  including  textile  and  apparel, leather  and  footwear,  plastic  and  rubber,  organic  chemicals,  home  décor, artisanal  products,  certain  machinery,  etc.    Subject  to  the  conclusion  of  the Interim Agreement, the U.S. will reduce additional tariff on India to 0% on a wide range  of  products,  such  as  gems  and  diamonds,  aircraft  parts,  generic pharmaceuticals, certain machinery and parts, vegetable saps, certain instruments and apparatus, certain plastic and rubber, certain auto parts, etc
-  India-Oman Comprehensive Economic Partnership Agreement (CEPA): India has secured 100% duty-free market access for its exports, covering 98.08% of Oman's tariff lines, representing 99.38% of India's export value. Prior to the FTA, Oman's tariff in the agriculture sector averaged 9%.
-  India - UK Comprehensive Economic and Trade Agreement (CETA) provides an unprecedented duty-free access to almost 99 per cent of India's exports to the UK, covering nearly 100% of the trade value.  All zero-duty concessions come  into  effect  with  entry  into  force.  India's  major  exports-from  laborintensive sectors like textiles, gems & jewellery, leather and footwear, organic chemical, artisanal products, and ceramics to high-value goods like auto parts, machinery, pharmaceuticals, and processed foods have gain with  zero-duty access to the UK.
-  India-New  Zealand  FTA:  New  Zealand  will  provide  100%  duty-free  market access on all tariff lines, including agri-processed products, marine products, dairy  products  and  other  rural  livelihood-based  products  from  the  entry  into force of the agreement. Before this, Indian Exports faced duties upto 10% in labour-intensive sectors.
-  India-EFTA Trade and Economic Partnership Agreement (TEPA): India has secured a binding commitment from EFTA covering 92.2% of tariff lines (99.6% of  India's  exports),  including  100%  of  non-agricultural  products  and  tariff concessions on Processed Agricultural Products Prior to FTA, duties on certain agricultural  products  were  as  high  as  249%.  Key  agricultural  concessions include zero duty on coffee, rice, cashews, shrimps, coconuts, pineapples, fruit juice, honey and malt.
-  India-Australia Economic Cooperation and Trade Agreement:  In the FTA all exports of India including food, agricultural and marine products are eligible for zero-duty market access from 1 January 2026. Earlier, the import duty on key agricultural and marine products was up to 5%.
-  India and United Arab Emirates (UAE) Comprehensive Economic Partnership Agreement (CEPA): India has secured duty-free and preferential market access on 97% of UAE tariff lines covering 99% of India's exports, with immediate duty elimination on over 80% of tariff lines, creating a transformational opportunity for Indian farmers, MSMES and other businesses.

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## ANNEXURE-II

## ANNEXURE REFERRED TO IN REPLY TO PARTS (c) to (g) OF THE LOK SABHA UNSTARRED QUESTION NO. 4111 FOR ANSWER ON 17.03.2026.

Details  of  completed/ongoing  projects  in  Tamil  Nadu  approved  under  the  TIES  are  as below:

|   S. No. | Implementing Agency                                                              | Project Name                                                                                                                        |   Total Project Cost (Rs. Cr.) |   TIES approved fund (Rs. Cr.) | Status    |
|----------|----------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|--------------------------------|-----------|
|        1 | Tamil Nadu Trade promotion organisation (TNTPO)                                  | Expansion of Chennai Trade Centre Tamil Nadu                                                                                        |                         308.75 |                          20    | Completed |
|        2 | Madras EPZ SEZ                                                                   | Revamping of 1 MLD Sewerage Treatment Plant (STP) at Madras EPZ SEZ, Tamil Nadu                                                     |                           2.15 |                           1.08 | Completed |
|        3 | Council for Leather Exports [CLE]                                                | Upgradation of Ranitec CETP project, Tamil Nadu                                                                                     |                          17.73 |                           4.43 | Completed |
|        4 | ARSTPS-CIPET                                                                     | Common Facilities Centre for Design, Prototype & Tool Room for Automobile, Aerospace and Engineering Clusters', Chennai, Tamil Nadu |                          32    |                          15.13 | Completed |
|        5 | Council for Leather Exports [CLE]                                                | Creation of additional 596 KLD capacity system in Madhavaram CETP                                                                   |                          13.08 |                           1.89 | Completed |
|        6 | Council for Leather Exports [CLE]                                                | Creation of additional 750 KLD of ZLD System capacity in VISHTEC CETP at Melvisharam                                                |                          18.64 |                           7.02 | Ongoing   |
|        7 | Council for Leather Exports [CLE]                                                | Common Facility Centre in Melvisharam, Tamil Nadu                                                                                   |                          19.84 |                           4.84 | Completed |
|        8 | SIPCOT Industrial Complex (State industries promotion corporation of Tamil Nadu) | Establishment of Export Trade Facilitation Centre                                                                                   |                          28.96 |                          13.98 | Completed |
|        9 | SIPCOT Industrial Complex (State industries promotion corporation of Tamil Nadu) | Establishment of Plug & Play Infrastructure in SIPCOT Industrial Growth Centre, Perundurai, Erode District', Tamil Nadu             |                          16.92 |                           4.03 | Completed |
|       10 | Tidel Neo Limited                                                                | Development of Mini Tidel Park in Thiruchitrambalam District Villupuram                                                             |                          30.63 |                          12.34 | Completed |
|       11 | Tidel Neo Limited                                                                | Development of Mini Tidel Park in Meelavitan- II Village, Thoothukudi Taluk                                                         |                          30.63 |                          12.34 | Completed |
|       12 | Tidel Neo Limited                                                                | Development of Mini TIDEL Park in Pillayarpatti Village, Thanjavur                                                                  |                          32.11 |                          12.95 | Completed |
|       13 | Tidel Neo Limited                                                                | Development of Mini Tidel Park in Melmanavur and Abdullapuram Villages, Vellore, Tamil Nadu'                                        |                          32.21 |                           6.72 | Completed |

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## ANNEXURE REFERRED TO IN REPLY TO PARTS (c) to (g) OF THE LOK SABHA UNSTARRED QUESTION NO. 4111 FOR ANSWER ON 17.03.2026.

The projects approved under 6 sub-scheme of IFLDP for the state of Tamil Nadu  are detailed below and are under progress:

## I.  Integrated Development of Leather Sector (IDLS)

| S. No. State/UTs   |   Number of units benefited for footwear &footwear components under IDLS |
|--------------------|--------------------------------------------------------------------------|
| 1 Tamil Nadu       |                                                                       89 |

## II. Sustainable Technology and Environmental Promotion (STEP)

(Rs. In crore)

| S.No.   | Project Name   | State      |   Total Approved Project Cost |   Approved GoI share |
|---------|----------------|------------|-------------------------------|----------------------|
| 1       | PERTEC CETP    | Tamil Nadu |                          9.74 |                 6.82 |
| 2       | Thuthipet CETP | Tamil Nadu |                          7.92 |                 5.54 |
| 3       | Ranitec        | Tamil Nadu |                         49.61 |                34.73 |
| 4       | Vanitec        | Tamil Nadu |                         13.59 |                 9.51 |
| 5       | Pallavaram     | Tamil Nadu |                         52.45 |                36.71 |
| 6       | SIDCO I        | Tamil Nadu |                         55.2  |                38.64 |
| 7       | Madhavaram     | Tamil Nadu |                          1.55 |                 1.09 |
| 8       | DINTEC         | Tamil Nadu |                         14.84 |                10.39 |
| Total   | Total          | Total      |                        204.9  |               143.43 |

## III. Mega Leather Footwear and Accessories Cluster Development (MLFACD)

(Rs. In crore)

| Name of Project   | SPV/Implementing Agency   | State      | Total Land Area   |   Approved Project Cost (In Cr) |   GoI Assistance (In Cr) |
|-------------------|---------------------------|------------|-------------------|---------------------------------|--------------------------|
| MLFAC, Panapakkam | SIPCOT                    | Tamil Nadu | 347.69 Acres      |                          271.33 |                      125 |

## IV. Brand Promotion of Indian Brands in Leather and Footwear Sector

(Rs. In crore)

| S.NoNameofthe   | Company                                 | State      |   Total Approved Project Cost Approved GoI |   share |
|-----------------|-----------------------------------------|------------|--------------------------------------------|---------|
| 1               | Sara Leather Industries                 | Tamil Nadu |                                       22.5 |       9 |
| 2               | Walkaroo International Private L imited | Tamil Nadu |                                       18   |       9 |
| Total           | Total                                   | Total      |                                       40.5 |      18 |

- V. Development of Design Studios
- VI. Establishment of Institutional Facilities (EIF)
3. *********

| S.No.Project   | Name                                   | State      |   Total Approved Project cost Approved GoI |   share |
|----------------|----------------------------------------|------------|--------------------------------------------|---------|
| 1              | Walkaroo International Private Limited | Tamil Nadu |                                       2.97 |    1.48 |
| 2              | CSIR-CLRI                              | Tamil Nadu |                                      10.94 |    5.47 |
| 3              | Sara Leather Industries                | Tamil Nadu |                                       7.81 |    3.9  |
| Total          | Total                                  | Total      |                                      21.72 |   10.85 |

| S.No.   | Project Name                                                                                                                     |   Total Approved Project cost with 100% GoI share |
|---------|----------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------|
| 1.      | Department of Non leather Products & Accessories at Five campuses(Noida, Bannur, Chennai, Kolkata and Hyderabad) centers of FDDI |                                             30.93 |
| Total   | Total                                                                                                                            |                                             30.93 |

(Rs. In crore)

(Rs. In crore)