India's 2025 Trade Mission: Boosting Exports and MSME Integration
India’s Export Push: Commerce Department Outlines 2025 Mission to Modernise Trade and Integrate MSMEs
The Department of Commerce, Government of India, has released its 2025 Year-End Review, laying out a comprehensive roadmap to strengthen India’s external trade architecture. At the core of this review is a new mission aimed at boosting merchandise and services exports, modernising trade infrastructure, and deepening the integration of micro, small and medium enterprises (MSMEs) into global value chains. The strategy reflects a shift from short-term trade targets to a long-term, structural transformation of India’s trade ecosystem.
The review, prepared in coordination with the Ministry of Commerce & Industry, highlights that India’s merchandise exports reached USD 219.88 billion during April–September 2025, reflecting a year-on-year growth of 2.90 per cent. While this growth is positive, the Department notes that sustaining and accelerating export momentum requires a more robust and resilient trade infrastructure, greater participation of domestic enterprises in global supply networks, and a more agile policy framework that responds to evolving global demand patterns.
Export Growth Strategy: Beyond Traditional Markets
The 2025 review identifies a multi-pronged approach to expand India’s export footprint. The Department of Commerce is focusing on diversifying export destinations, moving beyond traditional markets in the United States and Europe to deepen engagement with Africa, Latin America, the Middle East, and the Indo-Pacific region. This is being supported by an intensified trade diplomacy agenda, including high-level bilateral dialogues and participation in regional economic forums.
A key element of the export strategy is the expansion of the existing network of Free Trade Agreements (FTAs) and Preferential Trade Agreements (PTAs). The Department is working closely with partner ministries to finalise ongoing negotiations and to initiate new trade pacts that provide Indian exporters with preferential access to emerging markets. The review notes that the government is also undertaking a systematic assessment of existing FTAs to ensure that Indian industries are fully leveraging the benefits and that any implementation gaps are addressed.
On the product side, the Department is prioritising high-growth sectors such as engineering goods, pharmaceuticals, chemicals, textiles, electronics, and agricultural and processed food products. Special attention is being given to services exports, particularly in information technology, business process management, healthcare, education, and tourism-related services. The review underscores that services exports are now a critical component of India’s overall trade balance and are being supported through targeted policy interventions and digital trade facilitation measures.
Modernising Trade Infrastructure
A major thrust of the 2025 mission is the modernisation of India’s trade infrastructure. The Department of Commerce recognises that outdated port facilities, inefficient customs procedures, and fragmented logistics networks have historically constrained export competitiveness. To address this, the government is pursuing a coordinated upgrade of physical and digital trade infrastructure across the country.
At the port and logistics level, the review highlights ongoing investments in major ports, inland container depots (ICDs), and multi-modal logistics parks. These projects are being implemented under the Sagarmala Programme and other infrastructure schemes, with a focus on reducing cargo dwell time, improving turnaround efficiency, and lowering logistics costs. The Department is also working with state governments and private stakeholders to develop dedicated export corridors and freight corridors that connect production clusters directly to ports and airports.
On the digital front, the government is expanding the National Single Window System for trade, which integrates multiple regulatory agencies and allows exporters to file documents, obtain clearances, and track shipments through a single digital platform. The 2025 review notes that the system is being rolled out in phases, with increasing participation from customs, DGFT, food safety, plant and animal quarantine, and other agencies. The goal is to reduce the time and cost of compliance, making India a more attractive destination for export-oriented investment.
The Department is also strengthening the institutional framework for trade facilitation. This includes capacity building for customs and trade officials, standardisation of procedures across ports and airports, and the adoption of risk-based inspection mechanisms to minimise delays for low-risk consignments. The review notes that these measures are expected to improve India’s ranking in global trade facilitation indices and enhance the ease of doing business for exporters.
MSME Integration into Global Value Chains
One of the most significant aspects of the 2025 mission is the explicit focus on integrating MSMEs into global value chains. The Department of Commerce acknowledges that while large enterprises have been relatively successful in accessing international markets, MSMEs continue to face structural barriers such as limited access to finance, technology, market intelligence, and quality certification.
To bridge this gap, the government is enhancing the scope and reach of existing MSME export promotion schemes. This includes the revised Foreign Trade Policy (FTP) 2023, which provides enhanced incentives for MSMEs, simplified procedures for export documentation, and dedicated support for participation in international trade fairs and buyer-seller meets. The Department is also expanding the network of Export Promotion Councils and Commodity Boards to ensure that MSMEs receive sector-specific guidance and market linkages.
A new initiative highlighted in the review is the establishment of MSME Export Hubs in key industrial clusters across the country. These hubs are designed to provide MSMEs with shared infrastructure such as testing laboratories, packaging units, design centres, and common export documentation services. The hubs will also serve as platforms for capacity building, training on international standards, and digital marketing support. The Department is working with state governments and industry associations to identify priority clusters and to ensure that the hubs are demand-driven and sustainable.
The review also notes that the government is promoting the participation of MSMEs in production-linked incentive (PLI) schemes across 14 key sectors. By encouraging MSMEs to become suppliers to larger PLI beneficiaries, the government aims to embed them more deeply into domestic and global supply chains. This is being supported by measures such as vendor development programmes, technology upgradation grants, and credit-linked capital subsidy schemes.
Trade Policy and Regulatory Reforms
The 2025 Year-End Review outlines a series of regulatory and policy reforms aimed at creating a more predictable and transparent trade environment. The Department of Commerce is working to rationalise export and import procedures, reduce the number of documents required for trade, and phase out non-tariff barriers that are not aligned with international norms.
On the import side, the review notes that the government is continuing its focus on import substitution in critical sectors such as electronics, defence, and capital goods, while ensuring that essential raw materials and intermediate goods remain freely available to exporters. The Department is also monitoring global trade developments, including changes in tariffs, standards, and technical regulations, to help Indian exporters adjust their strategies in a timely manner.
The review also highlights efforts to strengthen trade defence mechanisms. The Directorate General of Trade Remedies (DGTR) has been actively investigating cases of dumping, subsidisation, and safeguard measures to protect domestic industries from unfair trade practices. At the same time, the Department is ensuring that India’s trade defence measures are WTO-consistent and do not unduly restrict legitimate trade flows.
Another important reform is the ongoing modernisation of the Foreign Trade Policy. The Department is reviewing the policy framework to make it more responsive to emerging trends such as e-commerce, digital services, and green trade. The review notes that the next iteration of the FTP is expected to place greater emphasis on sustainability, digital trade, and the integration of India’s trade policy with broader economic and industrial strategies.
Support for Services Exports and Digital Trade
The 2025 mission also places strong emphasis on services exports, which have become a major source of foreign exchange earnings and employment. The Department of Commerce is working with sectoral ministries to identify high-potential services such as IT and IT-enabled services, healthcare, education, tourism, and professional services, and to develop targeted export strategies for each.
A key initiative in this area is the promotion of India as a global hub for digital services and technology solutions. The review notes that the government is supporting Indian IT and startup companies to expand their presence in overseas markets through market access support, branding campaigns, and partnerships with foreign governments and industry bodies. The Department is also engaging with international organisations to shape global rules on digital trade, data flows, and cross-border services.
The review also highlights the growing importance of e-commerce exports. The government is working to create a supportive regulatory environment for cross-border e-commerce, including simplified customs procedures for small consignments, secure payment gateways, and mechanisms to resolve consumer disputes. The Department is also promoting the participation of MSMEs and artisans in global e-commerce platforms, enabling them to reach international customers directly.
Regional and State-Level Trade Development
The Department of Commerce’s 2025 mission recognises that trade development must be regionally balanced and inclusive. The review notes that the government is working closely with state governments to promote export-oriented industrialisation in industrially backward and aspirational districts. This includes support for setting up export-oriented industrial parks, common facility centres, and logistics infrastructure in these regions.
The review also references ongoing efforts to develop the North Eastern region and Himalayan states as export gateways to South Asia, Southeast Asia, and beyond. The government is examining a roadmap for a new industrial policy for these regions, with a focus on leveraging their geographical advantage, natural resources, and cultural products for trade. The Department is also supporting the development of agro-processing, handicrafts, and tourism-related exports from these regions.
In addition, the review highlights the role of state-level export promotion agencies and trade facilitation cells in implementing the national export strategy. The Department is encouraging states to develop their own export action plans, align them with the national strategy, and leverage central schemes for infrastructure, skill development, and market access.
Capacity Building and Skill Development
A critical enabler of the 2025 export mission is the development of human capital and institutional capacity. The Department of Commerce is expanding its training and capacity-building programmes for exporters, trade officials, and MSMEs. This includes courses on international trade rules, export documentation, quality standards, packaging, branding, and digital marketing.
The review notes that the government is also strengthening the institutional capacity of trade-related agencies such as the Directorate General of Foreign Trade (DGFT), customs, and export promotion councils. This includes investments in digital systems, staff training, and process re-engineering to improve service delivery and reduce delays. The Department is also promoting greater coordination between central and state agencies to ensure a seamless trade experience for businesses.
On the MSME front, the government is supporting skill development programmes tailored to the needs of export-oriented industries. This includes training in modern manufacturing techniques, quality management, and compliance with international standards. The review notes that these efforts are being implemented in partnership with industry associations, technical institutions, and international development partners.
Monitoring and Evaluation Framework
The 2025 Year-End Review emphasises that the success of the export mission will depend on a robust monitoring and evaluation framework. The Department of Commerce is establishing a real-time dashboard to track key trade indicators such as export and import volumes, sectoral performance, port and logistics efficiency, and MSME participation in exports.
The review notes that the dashboard will be used to identify bottlenecks, assess the impact of policy interventions, and make timely course corrections. The Department is also setting up a mechanism for regular stakeholder consultations with industry associations, exporters, MSMEs, and state governments to gather feedback and incorporate it into policy design.
The review also highlights the importance of data-driven decision making. The Department is enhancing its data collection and analysis capabilities, including the use of big data and artificial intelligence to understand global demand patterns, identify emerging markets, and forecast trade trends. This information is being shared with exporters and policymakers to support strategic planning and risk management.
International Engagement and Strategic Partnerships
The Department of Commerce’s 2025 mission is closely aligned with India’s broader foreign policy and strategic partnerships. The review notes that trade and investment are central to India’s engagement with key partners such as the United States, European Union, United Kingdom, Japan, Australia, and the Gulf Cooperation Council countries.
Recent high-level dialogues, including the India-US Foreign Office Consultations, have placed trade, investment, defence cooperation, energy, technology, and trusted supply chains on the agenda. The review notes that these discussions are helping to deepen economic ties, resolve trade issues, and create new opportunities for Indian exporters and investors.
The Department is also actively participating in multilateral and plurilateral forums such as the World Trade Organization, G20, BRICS, and the Indo-Pacific Economic Framework. The review notes that India is advocating for a rules-based, inclusive, and equitable global trading system that supports the interests of developing countries and promotes sustainable development.
Conclusion: A Long-Term Vision for India’s Trade Future
The Department of Commerce’s 2025 Year-End Review presents a clear and structured vision for India’s external trade. The new mission to boost exports, modernise trade infrastructure, and integrate MSMEs into global value chains is not a short-term campaign but a long-term transformation of India’s trade ecosystem.
By focusing on infrastructure, policy reforms, MSME empowerment, and international engagement, the government aims to make India a more competitive and resilient player in global trade. The success of this mission will depend on sustained implementation, close coordination between central and state agencies, and active participation from industry and civil society.
As India continues to grow as a major economy, the Department of Commerce’s 2025 strategy provides a roadmap for ensuring that trade remains a key driver of growth, employment, and inclusive development across the country.
