India is planning a fresh push to triple its exports by 2035 by focusing on deep structural reforms in manufacturing rather than large subsidy-led spending, according to government officials, as reported
by Reuters.
The strategy marks the third major attempt under Prime Minister Narendra Modi to raise the share of manufacturing in the economy and strengthen India’s export base.
Focus on 15 Key Manufacturing Sectors
Under the proposed plan, India will prioritise manufacturing in 15 sectors, including semiconductors, metals, energy storage and labour-intensive industries such as leather. According to Reuters report, the goal is to boost annual goods exports to around $1.3 trillion over the next decade.
Earlier efforts — including the 2014 Make in India campaign and a $23 billion production-linked incentive (PLI) scheme launched in 2020 — failed to raise manufacturing’s share to the targeted 25% of GDP, as reported by Reuters.
A government official involved in drafting the policy said as reported by Reuters previous initiatives delivered only limited gains, highlighting the need for a more focused and coordinated approach to drive large-scale change.
Modest Funding, Structural Reforms at Core
Unlike earlier programmes, funding under the new plan will be limited. The government plans to spend about Rs 100 billion to develop infrastructure for around 30 manufacturing hubs. Additional grants of roughly $218 million will be allocated to advanced areas such as chips and battery storage.
Officials said the emphasis this time is on easing regulatory and compliance hurdles — widely seen as the biggest bottleneck for Indian manufacturing — rather than offering blanket subsidies.
National Manufacturing Mission Panel
A new framework, the National Manufacturing Mission, will oversee the initiative. A minister-led panel of senior bureaucrats will handle faster approvals, land clearances and access to cheaper financing.
The panel will also work with states to harmonise labour and business rules, address power supply issues and reduce red tape that raises costs for companies operating across multiple states.
