Finance Minister Nirmala Sitharaman recently shared an exciting vision for India’s manufacturing and trade at the Trade Conclave 2025. She highlighted that India’s exports reached a record $825 billion for FY25. That’s a 6% increase from last year, while global export growth was only about 4%. This clearly shows that India is becoming more competitive on the world stage.
A significant factor behind this growth is the Production Linked Incentive (PLI) scheme. Exports linked to this initiative have surged, totaling over ₹5.3 lakh crore (around $62 billion) with strong contributions from sectors like electronics, pharmaceuticals, food processing, and telecom.
Sitharaman emphasized that the nation’s trade success isn’t by chance; it’s the result of deliberate policy efforts. Recent free trade agreements with countries like the UAE, Australia, and the UK have played a crucial role in this. Additionally, ongoing negotiations with the EU and the US are reportedly reaching an advanced stage.
India is also gaining recognition as a top destination for foreign direct investment (FDI). A UN trade report shows that in the last decade, India attracted $668 billion in FDI, which is a staggering 67% of the total inflows over the past 24 years. This positions India well in the global economic landscape.
One notable example is Apple, which is shifting more of its manufacturing to India. This move reflects a broader trend of not just assembling products but adding real value through production.
To further boost trade, the government is streamlining processes. They’ve reduced the number of customs duty rates from 22 to just 8, making the system more straightforward. In the latest Union Budget, seven tariff slabs were eliminated, aiming for greater transparency.
Moreover, the government has extended the duty-free import period from five months to a full year, which will help manufacturers plan better. Changes to the Customs Act are promising faster cargo clearances by setting time limits on provisional assessments.
India’s approach to trade and investment is evolving, and the commitment to support critical sectors is evident. As trade continues to expand, it will be interesting to see how these strategies unfold in the coming years.
For more insights into India’s trade dynamics, you can refer to CNBC TV18.
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