Government Initiatives for Export Diversification

Summary of Government Initiatives to Enhance Export Markets

1. Free Trade Agreements (FTAs)

• Expansion of FTAs and Comprehensive Economic Partnerships (CEPA/CECA) aimed at increasing export opportunities and market access.
• FTAs facilitate trade by reducing non-tariff barriers and enhancing bilateral trade, benefiting industries and agriculture, and creating employment.
• Recent FTAs signed include:
  • India-Mauritius CECPA (Signed: February 22, 2021; Effective: April 1, 2021)
  • India-UAE CEPA (Signed: February 18, 2022; Effective: May 1, 2022)
  • India-Australia ECTA (Signed: April 2, 2022; Effective: December 29, 2022)
  • Upcoming agreements with the European Free Trade Association and the UK.

2. Export Promotion Mission (EPM)

• Launched with a budget of ₹25,060 crore for FY 2025-26 to FY 2030-31.
• Focuses on improving trade finance access, quality compliance, international branding, and logistics for exporters.

3. District Export Hubs (DEH)

• A decentralized approach to export promotion, identifying and prioritizing 3-5 viable products/services per district.
• Aims to enhance local export capabilities.

4. E-Commerce Export Initiatives

• Development of E-Commerce Export Hubs (ECEH) to streamline logistics and customs clearance.
• Simplification of export regulations, particularly for small value exports (up to ₹10 lakh) through courier modes.

5. RODTEP Scheme

• Aims to refund non-rebatable duties/taxes on exported products, enhancing competitiveness.

6. Support for MSMEs

• Establishment of 65 Export Facilitation Centers (EFCs) to guide MSMEs in export processes.
• International Cooperation Scheme to facilitate MSME participation in international exhibitions and trade shows.

7. Key Policies and Reforms

• Continuous dialogue with trade partners to address non-tariff barriers (NTBs) and enhance market access.
• Special focus on technical barriers related to standards and compliance.

8. Judicial and Regulatory Framework

• Engagement with joint committees and working groups to resolve export issues and address emerging global trade requirements.

9. Economic Impact

• FTAs are expected to significantly boost India’s export capacity, particularly in labor-intensive sectors like textiles and leather, creating substantial employment opportunities.

10. International Engagements

• Ongoing negotiations for additional FTAs with countries including Peru, Chile, Israel, Canada, and Malaysia.
• India and the USA have agreed on a framework for an interim trade agreement as of February 7, 2026.

Conclusion

The Indian government is actively working to diversify export markets through strategic FTAs, targeted export missions, and support for MSMEs, aiming to enhance India’s global trade footprint and economic growth.