India's Commerce Ministry Focuses on District-Level Export Promotion
Commerce Ministry’s Year-End Review Highlights District-Level Export Planning
The Government of India’s latest year-end review for the Department of Commerce places renewed emphasis on district export promotion planning and targeted assistance to smaller firms, as part of a broader strategy to diversify the country’s export base and deepen its integration with global value chains.[7]
According to the review, district-focused initiatives and support schemes for micro, small and medium enterprises (MSMEs) are being aligned to identify local export strengths, streamline institutional support, and extend market access interventions beyond traditional export hubs.[7]
Policy Context: Diversifying India’s Export Base
The year-end review underlines that export performance in recent years has increasingly depended on a combination of sectoral schemes and spatially targeted interventions, particularly at the district level.[7] It notes that while sectors such as electronics, engineering goods, pharmaceuticals and marine products have driven export growth in the first half of 2025–26, there is a parallel focus on widening the range of districts and firms participating in export activity.[7]
Production Linked Incentive (PLI) schemes across 14 key sectors have already contributed over ₹7.5 lakh crore in exports, especially from electronics, pharmaceuticals, telecom and related industries.[4] These outcomes, the review suggests, provide a benchmark for designing more granular, district-anchored strategies aimed at smaller producers and emerging clusters.[4][7]
The Department of Commerce has thus framed district export promotion planning and firm-level facilitation as complementary instruments to national-level industrial and trade policies, with a view to creating a more geographically and sectorally diversified export ecosystem.[7]
District as Export Hub and District Export Promotion Planning
District export promotion planning in 2025 is being shaped largely through the ongoing District as Export Hub (DEH) initiative, implemented by the Directorate General of Foreign Trade (DGFT).[1][2] Under DEH, each district is expected to identify products and services with export potential, prepare a district export action plan, and coordinate local interventions through dedicated institutional mechanisms.[1][2]
The initiative operates on the principle that district administrations, state governments and export promotion agencies are best placed to assess local strengths, address logistical issues and connect smaller producers to national and global markets.[1][2] The year-end review records DEH as a key pillar of the Department of Commerce’s efforts to spread export activity beyond a limited set of coastal and metropolitan centres.[7]
Institutional Mechanisms in States and Districts
To operationalise district export promotion, States and Union Territories have established State Export Promotion Committees (SEPC) and District Export Promotion Committees (DEPC).[1][2] These bodies bring together representatives from state departments, DGFT, industry associations, export promotion councils, banks and logistics agencies to review constraints and monitor implementation at regular intervals.[1][2]
The year-end review notes that this multi-stakeholder architecture is intended to improve coordination between trade policy, industrial promotion, infrastructure planning and skilling initiatives at the sub-national level.[7] Through these committees, districts are encouraged to integrate export considerations into broader development planning, including in areas such as warehousing, cold chains, testing facilities and last-mile connectivity.[1][2]
Identification of Exportable Products and Services
Under the DEH framework, districts prepare detailed profiles of products and services with export potential, with inputs from local industry, cooperatives, farmer producer organisations (FPOs) and service providers.[1][2] This process is closely linked to the One District One Product (ODOP) initiative, which has identified 1,243 unique products from 775 districts, spanning textiles, agriculture, food processing, handicrafts and other sectors.[1][2]
The year-end review references ODOP and DEH as mutually reinforcing efforts, in which ODOP selections inform export planning and DEH mechanisms provide an institutional platform for promoting identified products in domestic and international markets.[7][1] The ODOP product list, last updated in August 2025, is being used by state and district authorities to prioritise capacity building, branding and market-linkage activities.[1][2]
Targeted Assistance to Smaller Firms
A major theme in the year-end review is the provision of targeted support to smaller firms, including MSMEs, artisans and small producers, to enable their integration into export value chains.[7] The Department of Commerce highlights that, without such assistance, many smaller entities remain excluded from export markets due to limited scale, information gaps and compliance challenges.[7]
Capacity Building and Compliance Support
District export promotion plans increasingly incorporate structured capacity-building activities, including training in product standards, packaging, documentation, and digital marketing.[1][2][7] These initiatives are often conducted in collaboration with export promotion councils, industry bodies, sector-specific institutes and government agencies.
Particular attention is being paid to helping smaller firms understand and meet technical regulations and quality requirements in destination markets, ranging from sanitary and phytosanitary (SPS) measures for agri-food exports to certification and labelling for manufactured goods.[7] According to the review, such interventions are vital for enabling first-time exporters and for reducing the risk of shipment rejections.[7]
Market Access, E-Commerce and Trade Facilitation
The year-end review notes several measures that link smaller producers to domestic and overseas buyers through both physical and digital channels.[7] Under the ODOP framework, producers are supported to participate in domestic exhibitions, buyer–seller meets and trade fairs, where they can connect with wholesalers, retailers and export houses.[1][2]
E-commerce onboarding drives on platforms associated with the Government e-Marketplace (GeM) and ODOP Bazaar have been conducted to showcase district products and enable broader reach.[1][2] Engagements with Indian Missions abroad, virtual buyer–seller meets and participation in international exhibitions are being leveraged to introduce district-specific products to new markets.[1][2]
These efforts, in combination with logistics facilitation and documentation support, are aimed at reducing entry barriers for small exporters and at creating more predictable channels for repeat orders.[7]
Financial and Institutional Support Linkages
District export committees also work with banks, financial institutions and credit guarantee schemes to improve access to working capital, export credit and trade finance for smaller firms.[1][2][7] In parallel, sectoral schemes under the Department of Commerce and other ministries provide support for infrastructure upgrades, common facilities and technology adoption that can enhance export readiness.[7][4]
Cooperative structures such as the National Cooperative Exports Limited (NCEL), which now has 13,848 primary agricultural credit societies (PACS) and cooperatives as members, offer another avenue for aggregating produce from small farmers and producers for export.[5] This cooperative export vehicle aims to improve price realisation and market access for rural and small-scale stakeholders, complementing the district export promotion agenda.[5]
Linkages with Sectoral and Technology Initiatives
The Department of Commerce’s year-end review situates district export promotion within a wider ecosystem of sectoral schemes and technology-focused programmes that collectively influence export diversification.[7]
Production Linked Incentive Schemes
PLI schemes across 14 sectors have been designed to boost domestic manufacturing capacity, efficiency and export competitiveness.[4] The year-end review notes that exports under PLI have exceeded ₹7.5 lakh crore, with strong contributions from electronics, pharmaceuticals, telecom, and related sectors.[4][7]
While PLI primarily targets medium and large firms, its supply-chain effects extend to smaller units that supply components, services or raw materials. District export promotion plans for regions hosting PLI-linked clusters are therefore being aligned with anticipated demand for ancillary products and services, creating potential export avenues for MSMEs and local suppliers.[7][4]
Digital Skills and Software Export Readiness
The FutureSkills Prime initiative has trained more than 15.78 lakh candidates in emerging technologies, with the long-term objective of positioning India as a global hub for software products and services.[6] Although this scheme is anchored in the digital economy, it has clear implications for export diversification, particularly in IT and IT-enabled services (ITeS).
By increasing the pool of digitally skilled workers and entrepreneurs across states, the programme indirectly supports district-level export ambitions in software products, digital services and technology-enabled solutions, especially where local ecosystems are developing around start-ups and service providers.[6][7]
Research, Development and Innovation Support
The Government’s Research, Development and Innovation (RDI) scheme aims to support cutting-edge technology, deep-tech projects and start-ups, with a focus on enhancing competitiveness and enabling more firms to reach scale, including in export markets.[8] The year-end review recognises that technological upgrading and innovation are essential for sustaining export growth as global standards and market conditions evolve.[7]
District export promotion strategies are expected to draw on such schemes when identifying areas where local firms can move up the value chain, develop differentiated products and access higher-value segments of international markets.[7][8]
Implementation: Coordination Across Tiers of Government
Effective implementation of district export promotion planning relies on coordinated action across central ministries, state governments and district administrations.[1][2][7] The year-end review outlines several administrative steps taken to strengthen these linkages.
Integration with State Export Policies
States are being encouraged to embed district export plans within their broader export and industrial policies, ensuring that infrastructure investments, sectoral incentives and capacity-building programmes are aligned with identified district-level priorities.[7]
Through the SEPC and DEPC structures, states can rationalise overlapping schemes, focus resources on high-potential value chains, and avoid duplication of efforts across departments.[1][2][7] This integrated approach is viewed as crucial for achieving measurable improvements in district export performance.
Monitoring, Data and Feedback Mechanisms
Monitoring frameworks are being developed to track district-wise export performance, participation of smaller firms, and the impact of specific interventions over time.[7] Data generated through customs, DGFT portals, export promotion councils and state departments is used to assess trends, identify bottlenecks and refine district action plans.
Feedback from exporters, industry bodies and local institutions is expected to inform policy adjustments and operational changes, particularly in areas such as documentation processes, infrastructure gaps and market intelligence needs.[7] This iterative approach aims to make district export promotion planning more responsive and evidence-based.
Administrative and Public Impact
The year-end review’s account of district export promotion planning and targeted assistance to smaller firms points to several potential impacts for administration and the wider public.[7]
Broadening the Geographic Spread of Exports
By identifying exportable products and services in every district, the DEH and ODOP initiatives aim to reduce the concentration of export activity in a limited set of regions.[1][2][7] This could, over time, encourage more balanced regional development, create local employment opportunities, and strengthen rural and semi-urban economies.
District-level planning also ensures that export promotion is anchored in local resource endowments, skills and cultural products, including traditional crafts, processed foods and specialised services.[1][2] This approach may support the preservation and commercial scaling of local specialisations.
Inclusion of Micro and Small Producers
Targeted assistance to smaller firms and producers can help address long-standing challenges related to scale, quality compliance, and limited market access.[7] Through capacity building, financial linkages, and structured exposure to domestic and international markets, micro and small entities may increasingly participate in export value chains.
For citizens, this may translate into diversified livelihood opportunities, particularly in districts where agriculture, handicrafts and light manufacturing dominate the local economy.[1][2][5] Producer groups, cooperatives and MSMEs stand to benefit from improved bargaining power, better price discovery and access to new buyers.
Administrative Strengthening and Coordination
The creation and activation of SEPCs and DEPCs can enhance inter-departmental coordination within state and district administrations, particularly between commerce, industry, agriculture, transport, and skill development departments.[1][2][7] Over time, such coordination may contribute to more efficient use of public resources, faster resolution of procedural issues and greater policy coherence.
At the central level, integration of district feedback into national trade policy deliberations can help refine export promotion schemes to better reflect ground realities, such as infrastructure constraints, sectoral shifts and evolving global demand patterns.[7]
Potential Impact on Export Resilience
Diversification across districts, products and firm sizes is expected to improve the resilience of India’s export sector to external shocks, sector-specific downturns or market disruptions.[7] When a wider base of firms and regions is engaged in exporting, the national export portfolio becomes less vulnerable to fluctuations affecting a single sector or geography.
The focus on smaller firms, cooperative export vehicles, and technology-led upgrading also supports the development of more adaptable and flexible supply chains, which can respond to evolving global standards, demand preferences and sustainability requirements.[5][7][8]
Official Articulation and Public Communication
Official communications on district export promotion and related initiatives have emphasised inclusive growth and the objective of enabling each district to contribute to national export targets.[1][2][7]
“Under the District as Export Hub initiative, identification of the products and services with export potential in all the districts of the country is done in consultation with all stakeholders including the States and Union Territories. Institutional mechanisms have been set up in all States and UTs by forming State Export Promotion Committees and District Export Promotion Committees at the district level.”[1][2]
The year-end review consolidates such initiatives into a single narrative, highlighting that export promotion is no longer limited to a few large sectors or industrial clusters but is being actively pursued as a district-level development strategy.[7]
Outlook
The Department of Commerce’s year-end review suggests that district export promotion planning and targeted assistance to smaller firms will remain central elements of India’s export diversification strategy in the coming years.[7] As implementation progresses, the effectiveness of these measures will depend on sustained coordination across government tiers, timely data and feedback, and continuous adaptation to global trade dynamics.
For administrators, businesses and citizens, the evolution of these initiatives will be closely watched as an indicator of how India’s export growth can be made broader-based, more inclusive and anchored in local strengths, while remaining aligned with global market opportunities.[7][1][2]
