PLI Schemes, Logistics Reforms, and District Export Hubs Driving India’s Transformation into a Global Export Hub

It is the constant endeavour of the Government to boost India’s exports including promoting of MSME participation in global trade though export incentives, trade promotion events, and digital platforms to streamline processes. A major thrust has been placed on expanding market access through Free Trade Agreements (FTAs). Notably, India signed the Comprehensive Economic and Trade Agreement (CETA) with the United Kingdom on 24th July 2025, marking a significant milestone in bilateral trade relations. Meanwhile, negotiations for the India-European Union Free Trade Agreement is ongoing with an aim to conclude by end of the year.

To strengthen domestic manufacturing and export capabilities, the Government has implemented Production Linked Incentive (PLI) schemes for 14 key sectors including Electronics, IT hardware, Pharmaceuticals, Bulk Drugs, High-Efficiency Solar PV Modules, Automobiles & Auto Components, White Goods, Telecom and Networking Products to enhance India's Manufacturing capabilities and Exports. These schemes have incentivized domestic manufacturing, leading to increased production, job creation, and a boost in exports. They have also attracted significant investments from both domestic and foreign players.

To enhance the efficiency of logistics and reduce associated costs across the country, the Government of India has launched landmark initiatives of National Logistics Policy (NLP) and PM Gati Shakti designed to streamline the movement of goods and people by addressing bottlenecks, improving coordination among various stakeholders, and leveraging technology for smarter logistics management. The PM Gati Shakti National Master Plan plays a pivotal role in the integrated development of multimodal infrastructure to ensures seamless connectivity, faster transportation, and optimized resource utilization for boosting economic productivity and exports. Complementing these efforts is the National Industrial Corridor Development Programme (NICDP), a transformative initiative aimed at establishing globally competitive manufacturing hubs with robust connectivity to domestic and international markets. These corridors are envisioned to catalyse industrial growth, attract investments, generate employment, and position India as a key player in global supply chains. Moreover, technology tools like Logistics Data Bank have improved transparency and efficiency. Together, these initiatives represent a strategic vision to modernize India’s logistics ecosystem and industrial base, fostering long-term economic growth and global competitiveness.

Grassroots initiatives such as Districts as Export Hubs (DEH) and E-Commerce Export Hubs (ECEHs) are enabling SMEs including start-ups to compete globally through reduced costs and simplified regulations.

The Government has taken measures to promote exports from the districts under the Districts as Export Hubs Initiative. It includes identification of the products and services with export potential in all the districts of the country in consultation with all stakeholders including the States/UTs. An institutional mechanism has been set up in all States/UTs by forming the State Export Promotion Committee (SEPC) and District Export Promotion Committee (DEPC) at the District level. Under the initiative, District Export Action Plans detailing the existing bottlenecks in the supply chain and identifying possible interventions to mitigate the existing gaps have been prepared for 590 districts and are being prepared for the rest of the districts.

The E-Commerce Export Hubs (ECEHs) initiative, aims to provide dedicated zones for facilitating cross-border e-commerce exports from India. The objective is to support SMEs, artisans, and small businesses by reducing the cost and time associated with logistics, streamlining regulatory processes, and simplifying re-imports for e-commerce returns or rejects. ECEHs shall provide integrated services at a single location, encompassing customs clearance, quality certification, packaging, and off-port warehousing. DGFT has issued Trade Notice No. 14/2025 dated 22.08.2024, inviting detailed proposals for these pilots. Five ECEH pilot projects have been proposed for implementation.

The initiatives taken by the Government have led to decline in dependency on imports and boosting exports in several sectors. For example, under the PLI Scheme for medical devices, 21 projects have started manufacturing of 54 unique medical devices, which include high end devices such as Linear Accelerator (LINAC), MRI, CT-Scan, Heart Valve, Stent, Dialyzer Machine, C-Arm, Cath Lab, Mammograph, MRI Coils, etc. Further, the PLI Scheme for Large Scale Electronics Manufacturing has significantly impacted Mobile manufacturing sector in India particularly in transforming India from a net importer to a net exporter of mobile phones. The export of mobile phones has increased from Rs. 1,500 cr in 2014-15 to more than Rs. 2 lakh cr in 2024-25. Bharat is now the second largest mobile manufacturing country in the world. In addition, the pharmaceuticals sector has witnessed cumulative sales of Rs.2.66 lakh crore which includes exports of Rs.1.70 lakh crore achieved in the first three years of the scheme. The scheme has contributed to India becoming a net exporter of bulk drugs (2280 cr.) from net importer (-1930 cr.) as was the case in FY 2021-22. It has also resulted in significant reduction in gap between the domestic manufacturing capacity and demand of critical drugs.

This information was given by the Minister of State for the Ministry of Commerce & Industry, Shri Jitin Prasada in a written reply in the Lok Sabha today.

Export promotion measures expand manufacturing capacity and reduce import dependence, boosting cross-border trade opportunities for SMEs. The Government deploys a coordinated export-promotion package centered on Production Linked Incentive (PLI) schemes for strategic sectors, complemented by national logistics reforms (National Logistics Policy, PM Gati Shakti, industrial corridors, and technology platforms) to cut trade costs and improve connectivity. At the subnational level, Districts as Export Hubs and E-Commerce Export Hubs (ECEHs) establish institutional mechanisms, district action plans, and integrated single-location services to enable SME participation, streamline cross-border e commerce, and address supply-chain bottlenecks.