As we stand midway through 2025, India’s ambition to become a global manufacturing and export powerhouse is more critical than ever. In a world shaped by shifting geopolitical alliances and volatile supply chains, the nation’s roadmap is its Foreign Trade Policy (FTP). This isn’t just a regulatory document; it’s a strategic blueprint designed to steer India towards an audacious goal: achieving 2 trillion in exports by 2030.
The current framework, the Foreign Trade Policy 2023, remains the cornerstone of this effort. It marked a significant philosophical shift, moving from temporary incentives to a more stable, long-term, and WTO-compliant ecosystem. For any business operating in India, understanding the pillars of this policy is key to unlocking immense growth potential.
The Core Philosophy: A Long-Term Vision
Unlike its predecessors, which had a five-year sunset clause, FTP 2023 is a dynamic, open-ended policy. This provides a stable and predictable environment for businesses, encouraging long-term investment in manufacturing and export infrastructure without the worry of sudden policy changes. The policy’s key objective is to transition India from a mindset of receiving incentives to one built on remission and entitlement, ensuring that taxes are not exported.
Key Pillars Driving Growth in 2025
The FTP is built on several foundational pillars that continue to shape India’s trade landscape today:
1. Digitization and Ease of Doing Business: The push for automation is relentless. Processes for approvals, renewals, and compliance have largely moved online, drastically reducing transaction times and costs for exporters. This “paperless” approach has been a game-changer, particularly for small and medium-sized enterprises (SMEs) looking to compete on the global stage.
2. Empowering Exports from the Grassroots: A standout feature of the FTP is the Districts as Export Hubs (DEH) initiative. The government, in collaboration with states, is actively identifying products with export potential in each of India’s 700+ districts. From Rajasthan’s blue pottery to Uttar Pradesh’s chikankari embroidery, the goal is to diversify India’s export basket by empowering local artisans and producers, connecting them directly to global markets.
3. A Boost for E-Commerce Exports: Recognizing the power of global e-commerce platforms, the FTP has significantly streamlined regulations for online exports. The export cap for items sent via courier has been doubled to ₹10 lakh per consignment, making it easier for small businesses and D2C brands to sell their products directly to international consumers.
4. Streamlining Dual-Use Technology Exports (SCOMET): The policy simplifies the export of SCOMET items (Special Chemicals, Organisms, Materials, Equipment, and Technologies), which have both civilian and military applications. By streamlining the licensing process, India aims to become a more reliable player in the global high-technology value chain, building trust with its international partners.
The 2025 Landscape: Opportunities and Headwinds
While the FTP provides a robust framework, its success is being tested by the global environment of 2025.
- Opportunities: Recent Free Trade Agreements (FTAs) with the UAE and Australia are bearing fruit, opening new markets and reducing tariffs. Ongoing negotiations with the UK and EU, if concluded, could provide another massive boost. Furthermore, the Production Linked Incentive (PLI) schemes in sectors like electronics, pharmaceuticals, and automobiles are beginning to create deep manufacturing capabilities, directly feeding into export growth.
- Headwinds: Global economic headwinds and moderated demand in key markets like the US and Europe remain a concern. Persistent geopolitical tensions continue to create supply chain uncertainties. Domestically, ensuring uniform implementation of the DEH initiative across all states and addressing infrastructure bottlenecks are ongoing challenges.
The Road Ahead
India’s Foreign Trade Policy is an ambitious declaration of intent. It is a forward-looking plan that prioritizes stability, technology, and grassroots empowerment. As we look towards 2030, the ability of Indian businesses to leverage this framework, combined with the government’s agility in navigating global challenges, will determine whether the 2 trillion export dream becomes a reality.