The Government is working towards increasing the exports of agricultural and allied commodities and increasing its share in the global trade. The overall exports of these products in 2024-25 were US$ 51.9 Billion.
The export policy of the Indian Government is a key driver of economic growth, foreign exchange earnings, and global integration. Implemented primarily through the Foreign Trade Policy (FTP) and supported by sector-specific institutions, the policy seeks to enhance export competitiveness, diversify markets, and shift India’s export basket toward value-added products.
Policy Objectives and Strategic Shift India’s export policy aims to increase its share in global trade, generate employment, and promote structural transformation. In recent years, the focus has shifted from merely expanding export volumes to enhancing value addition and quality. This is evident in the growing emphasis on processed foods, pharmaceuticals, engineering goods, and services rather than raw or low-value exports.
Data on Export Performance India’s overall merchandise and services exports have crossed US$ 750 billion in recent years, reflecting improved global integration. Specifically, agricultural and allied product exports reached US$ 51.9 billion in 2024–25, highlighting the rising importance of Agri-exports in India’s trade strategy. Products such as basmati rice, marine products, spices, and processed foods account for a significant share of this growth.
Institutional Mechanisms and Policy Instruments The Government supports exporters through institutions like APEDA, which plays a crucial role in promoting agricultural and processed food exports. Under APEDA’s Financial Assistance Scheme (FAS), exporters receive support for:
- Development of export-oriented infrastructure such as pack houses and cold chains
- Quality development through certifications like GLOBALGAP and HACCP
- Market development via participation in international trade fairs
For example, APEDA-supported integrated pack houses have enabled grape exporters from Maharashtra to access European markets by meeting stringent quality and traceability standards.
Sector-Specific Examples Agriculture and Food Processing: India has emerged as the world’s largest exporter of rice, supported by infrastructure development and quality certification programs.
Pharmaceuticals: India supplies affordable generic medicines to over 200 countries, contributing significantly to export earnings.
Engineering Goods: Engineering exports form a major share of India’s merchandise exports, driven by policy support and global demand diversification.
Challenges and Structural Constraints Despite progress, India faces persistent challenges such as high logistics costs (estimated at 13–14% of GDP), fragmented supply chains, and inconsistent quality standards. Dependence on a limited number of export markets and sensitivity to global economic slowdowns also constrain export growth. Conclusion The export policy of the Indian Government has evolved toward a more competitiveness-driven and value-oriented framework, supported by data-backed institutional mechanisms and sectoral initiatives. While export performance—particularly in agriculture and value-added sectors—shows encouraging trends, addressing structural bottlenecks and improving productivity will be crucial for sustaining long-term export growth and increasing India’s share in global trade.
