Sat Feb 01 23:13:34 IST 2025: **India’s Union Budget 2025 Boosts Exports with Multi-pronged Strategy**

COIMBATORE, February 1, 2025 – The Indian government unveiled a comprehensive export promotion strategy in its Union Budget 2025, aiming to significantly boost the nation’s trade capabilities. A key initiative is the establishment of an Export Promotion Mission, receiving a ₹2,250 crore allocation to streamline access to export credit, provide cross-border factoring support, and assist MSMEs in navigating international non-tariff barriers. This mission will be a joint undertaking by the Ministries of Commerce, MSMEs, and Finance.

Further bolstering export efforts, the budget announced the creation of “BharatTradeNet” (BTN), a digital public infrastructure platform designed to unify trade documentation and financing. This platform will complement the existing Unified Logistics Interface Platform. The government also plans to modernize its Bilateral Investment Treaty (BIT) model to attract sustained foreign investment.

Specific measures target key sectors. A new National Food Technology Institute in Bihar will focus on enhancing value addition in food processing for export and job creation. The export duration for handicrafts made from duty-free inputs will be extended to one year, with a possible three-month extension. Addressing a $50 billion maritime services trade deficit, the budget includes a revamped shipbuilding financial assistance policy and a ₹25,000 crore Maritime Development Fund (49% government contribution) to foster long-term industry growth. Larger ships will be added to the infrastructure harmonized master list (HML).

To integrate with global supply chains, the government will support domestic manufacturing capacity building across strategically selected sectors. This will involve establishing facilitation groups comprising senior officials and industry representatives for key products and supply chains. The government also plans to support the domestic electronics industry, capitalizing on Industry 4.0 opportunities. Infrastructure improvements for air cargo, especially perishable goods, along with streamlined customs protocols, are also planned. Further support is earmarked for tourism and financial services. A national framework will promote Global Capability Centres (GCCs) in tier-two cities, focusing on talent, infrastructure, and regulatory improvements. Finally, a new transfer pricing scheme will align with international best practices.

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