In the Union Budget 2025, Finance Minister Nirmala Sitharaman unveiled a comprehensive strategy to position exports as the fourth engine driving India’s goal of ‘Viksit Bharat’ (Developed India). This initiative includes the establishment of an export promotion mission, the creation of the Bharat Trade Net digital infrastructure, and the formulation of a national framework to promote Global Capability Centres (GCCs) in emerging tier-2 cities.
Export Promotion Mission
The government plans to launch an export promotion mission, collaboratively driven by the Ministries of Commerce, Micro, Small, and Medium Enterprises (MSMEs), and Finance. This mission aims to facilitate easier access to credit for exporters and assist MSMEs in navigating non-tariff barriers, thereby enhancing their competitiveness in the global market. The initiative underscores the critical role of MSMEs, which currently account for 45% of India’s exports, in achieving the nation’s export objectives.
Bharat Trade Net: Digital Public Infrastructure for International Trade
To streamline trade processes, the government will establish the Bharat Trade Net, a digital public infrastructure designed for international trade. This platform will focus on trade documentation and financial solutions, aiming to simplify procedures, reduce transaction costs, and improve efficiency for exporters. By leveraging technology, Bharat Trade Net seeks to create a seamless and transparent trading environment, facilitating smoother interactions between exporters, financial institutions, and regulatory bodies.
Promoting Global Capability Centres in Tier-2 Cities
Recognizing the potential of tier-2 cities, the government will formulate a national framework to guide states in promoting Global Capability Centres (GCCs) in these emerging urban areas. GCCs, which are offshore units that handle various business processes and IT services for multinational corporations, have traditionally been concentrated in major metropolitan areas. By encouraging their establishment in tier-2 cities, the government aims to diversify economic development, create employment opportunities, and leverage the untapped potential of these regions.
Context and Implications
These initiatives are part of a broader strategy to enhance India’s export performance and integrate the economy more deeply into global value chains. The export promotion mission is expected to provide targeted support to MSMEs, enabling them to scale operations and access new markets. The Bharat Trade Net will likely reduce administrative burdens and foster a more conducive environment for international trade. Additionally, promoting GCCs in tier-2 cities aligns with the government’s vision of balanced regional development and could lead to the emergence of new economic hubs across the country.
By implementing these measures, the Union Budget 2025 aims to strengthen the export sector, drive economic growth, and move closer to the goal of a ‘Viksit Bharat’.