India Steps Up Export Push As Trump’s Tariffs Loom Over Trade Prospects

With US tariffs under President Donald Trump threatening to weigh on India’s outbound trade, the government has listed down measures it has been taking to strengthen exports and domestic manufacturing.

Minister of State for Commerce and Industry Jitin Prasada in a written reply told the Lok Sabha that a combination of production-linked incentives (PLIs), logistics reforms, and market-expansion strategies are being deployed to safeguard India’s global competitiveness.

New trade architecture remains central to this push. India signed the Comprehensive Economic and Trade Agreement (CETA) with the United Kingdom in July 2025, while negotiations with the European Union are expected to conclude by year-end.

Officials see these agreements as critical to cushioning the impact of any American protectionist policies by widening market access elsewhere.

Domestically, PLIs covering 14 key sectors from electronics and IT hardware to pharmaceuticals, automobiles, and solar modules are driving manufacturing expansion.

The schemes have already delivered tangible results, turning India into the world’s second-largest mobile producer, with handset exports jumping from Rs 1,500 crore in 2014–15 to over Rs 2 lakh crore in 2024–25.

In pharmaceuticals, exports touched Rs 1.7 lakh crore in the first three years of the scheme, alongside India shifting from net importer to net exporter of bulk drugs.

Parallel reforms under the National Logistics Policy and PM Gati Shakti aim to slash transport costs by integrating multi-modal infrastructure, while the National Industrial Corridor Development Programme is nurturing globally competitive manufacturing hubs.

Grassroots schemes such as Districts as Export Hubs and new E-Commerce Export Hubs are designed to bring small businesses and artisans into global supply chains.

“It is the constant endeavour of the Government to boost India’s exports including promoting of MSME participation in global trade,” Prasada said.

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