India Boosts Value-Added Exports with Sector-Specific Schemes

India Boosts Value-Added Exports with Sector-Specific Schemes

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Department of Commerce Advances Sector-Specific Schemes to Boost Value-Added Exports

The Government of India’s Department of Commerce has proactively outlined a series of sector-specific schemes and market promotion activities aimed at enhancing value-added exports from priority industries. These initiatives form part of a broader strategy to strengthen India’s export profile by focusing on products and services with higher value addition potential, ensuring sustainable economic growth and improved global competitiveness.

Background and Implementation Framework

This export promotion framework has been detailed under the Union Commerce Ministry's ongoing efforts to expand and diversify India's export basket. The department has tied these schemes closely with existing government programmes, such as the One District One Product (ODOP) initiative and the District as Export Hub (DEH) scheme. Both focus on identifying distinct product strengths at the district level and building region-specific export ecosystems to maximize product visibility and market access.

The Commerce Department’s strategy involves close coordination with various stakeholders at the state and district levels through the institutionalization of State Export Promotion Committees (SEPCs) and District Export Promotion Committees (DEPCs). These bodies facilitate targeted interventions ranging from capacity building, participation in exhibitions, and international promotion to creating favorable digital marketing environments through Government e-Marketplace (GeM) platforms.

Key Sectoral Schemes and Market Promotion Activities

The department has designed its schemes to support a variety of sectors and product types particularly capable of generating higher value addition. Some of the defining elements of these schemes include:

  • Facilitation of domestic and international participation in exhibitions, trade fairs, and buyer-seller meets to enhance global market linkages.
  • Capacity building and skill enhancement programmes targeted at manufacturers and exporters to improve product quality and compliance with international standards.
  • Onboarding of products and entrepreneurs onto digital platforms such as GeM, particularly for priority products under the ODOP banner, thus integrating them with modern supply chain and procurement mechanisms.
  • International promotional events, including active engagement of Indian Missions abroad, virtual marketing events, and gifting of ODOP products during diplomatic forums such as G-20 summits, aimed at raising awareness and demand for Indian value-added exports.

One District One Product Initiative

The ODOP initiative plays a central role in advancing value-added exports. It involves the identification of a unique priority product for each district in India with significant export potential. Through ODOP, districts are empowered to specialize and build production and value chain capabilities around these distinctive products. Regular updates and listings of identified products are maintained and shared by the government to assist exporters and stakeholders in market targeting and policy alignment.

Promotion of ODOP products is supported by dedicated capacity-building efforts, domestic market integration through e-commerce, and external market outreach including participation in international exhibitions and engagement with buyer communities worldwide. This integrated approach is designed to increase the share of value-added products in India's export portfolio.

District as Export Hub Scheme

Complementing ODOP is the District as Export Hub (DEH) initiative led by the Directorate General of Foreign Trade (DGFT). This scheme focuses on boosting exports by identifying products and services with high export potential at the district level and forging a collaborative institutional mechanism. It involves:

  • Collaboration with State and Union Territory governments to identify competitive advantages and exportable items uniquely positioned in each district.
  • Formation of SEPCs and DEPCs to institutionalize export promotion at both state and district levels, thereby facilitating coordinated policy implementation and stakeholder engagement.
  • Linkages with financial institutions, logistics providers, and quality certification agencies to address bottlenecks and support exporters in scaling operations.

Financial Outlay and Digital Integration

The government has allocated a substantial outlay of Rs. 25,060 crore for the financial year 2025–26 to support export promotion activities under these comprehensive schemes. This funding underpins infrastructure development, trade facilitation, capacity enhancement, and digital integration efforts designed to make Indian exports more competitive globally.

Digitally-driven tactics form a significant pillar of this strategy. For example, the Government e-Marketplace (GeM) has been leveraged to establish dedicated portals like “ODOP Bazaar” to showcase and sell exclusive district products nationally and internationally. Such digital promotion not only widens market reach but also improves price discovery, reduces intermediaries, and standardizes the quality perception among buyers.

Integration with Other National Programmes

These export promotion schemes are complemented by several other government initiatives such as:

  • Production Linked Incentive (PLI) schemes supporting key manufacturing sectors by incentivizing domestic production with export potential.
  • Trade facilitation efforts under the National Logistics Policy and PM Gatishakti which optimize transport and supply chain efficiencies critical to export competitiveness.
  • STARTUP India and other innovation-driven programmes helping new-age exporters with technology adoption and product differentiation for global markets.

Potential Impact on Administration and Public

The Commerce Department’s sector-specific schemes and market promotion activities are expected to positively affect India's export economy in multiple dimensions. These include:

  1. Economic growth and diversification: By focusing on value-added product exports, the schemes aim to reduce dependency on raw materials and low-margin commodities, enabling India to shape a resilient export landscape.
  2. Employment generation: Encouraging high-value manufacturing and export-oriented production clusters will create extensive job opportunities, especially in semi-urban and rural districts where identified products emerge.
  3. Regional development: The district-specific export approach helps bridge regional disparities by empowering local industries and enhancing infrastructure in traditionally underutilized districts.
  4. Exports competitiveness: Enhanced quality, digitization, and market access lead to improved international acceptance of Indian products, supporting stable and augmented foreign exchange earnings.
  5. Stakeholder engagement: The institutional structures at state and district levels facilitate constant feedback loops, stakeholder participation, and better policy calibration, enhancing administrative efficiency.

Government Statements and Endorsements

"The Mission will provide a comprehensive, flexible, and digitally driven framework for export promotion, with a total outlay of Rs. 25,060 crore for FY 2025–26. This effort will harness district-level strengths and promote value-added exports of priority sectors through strategic market engagement and institutional collaboration," stated a senior Commerce Ministry official.

Conclusion

The Department of Commerce’s sector-specific schemes and market promotion activities represent a focused and strategic approach to elevate India's export capabilities. By leveraging district-level specialization, embedding digital solutions, and fostering collaboration among government entities, industry participants, and export stakeholders, the government aims to significantly advance India’s position in the global export marketplace, support sustainable economic growth, and improve the livelihoods of millions involved in export-centric production.

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