India's Strategic Ascension in Global Trade Competitiveness

India's meteoric rise in global trade competitiveness is a testament to its transformative journey from an agrarian economy to a diversified powerhouse. With dynamic policy shifts, technological advancements, and global partnerships, the country is not only expanding its economic footprint but also redefining its role as a leader in sustainable and inclusive trade.

India's journey toward becoming a global economic powerhouse is marked by remarkable achievements in its export landscape. India’s exports trajectory including merchandise and services has expanded significantly during the last 10 years period. India's overall exports increased from USD 466 billion in 2013-14 to USD 778 billion in 2023-24. India aims to increase its exports to the level of USED 3 trillion by 2023. This robust growth in exports signifies India’s conducive policy environment for the manufacturing processes and facilitation to the services providers. The improvement in Ease of Doing Business has significantly boosted the sentiments of producers and exporters in the country.

India has made remarkable strides across various sectors, including petroleum oils, agrochemicals, semiconductors, and precious stones. This progress showcases the country's ability to harness cutting-edge technology, adopt innovative practices, and enhance its competitive manufacturing capabilities to meet the demands of the global market.

Backed by strong government initiatives, the country is not only broadening its export portfolio but also reinforcing its status as a dependable global supplier. India's export performance across several key product categories has been notably successful, with the country improving its position among the top 10 global suppliers with export values surpassing USD 1 billion in 2023.

In the agrochemical sector, India has achieved notable success, particularly in insecticides, rodenticides, and fungicides. By 2023, exports reached USD 4.3 billion, marking a global market share of around 11%, up from 6% in 2014. Investments in research and development, coupled with compliance with international agricultural standards, have positioned India as the third-largest exporter globally.

India’s sugar exports have witnessed exceptional growth; sugar export values reached USD 3.72 billion in 2023. India’s share in the global market for cane or beet sugar has increased from 4% in 2014 to 12% in 2023, strengthening India’s position as the second-largest sugar exporter. Strong production bases and favorable agricultural policies have enabled India to cater to growing World demand, particularly in Southeast Asia and Africa.

Make in India bolsters competitiveness--Great breakthrough in the trade competitiveness has been achieved by the facilitative business environment and meaningful reforms in the country. Make in India has been one of the most ambitious and transformative initiatives introduced by the Indian government, aiming to position India as a global manufacturing powerhouse. Launched in September 2014 by Prime Minister Narendra Modi with a goal to turn India into a hub for manufacturing, innovation, and design, attracting investments and boosting the country's economic growth. Over the past decade, Make in India has not only inspired confidence among domestic and global investors but has also propelled India to take significant strides in its industrial capabilities.

Strategic policies and trade reforms

India’s trade competitiveness is driven by forward-looking policies aimed at enhancing production capacities, fostering innovation, and strengthening global partnerships. The Foreign Trade Policy (FTP) launched in April 2023 is a cornerstone of India’s trade framework. Built on four pillars—remission incentives, export promotion, ease of doing business, and a focus on emerging sectors—the policy provides the blueprint for aligning domestic production with global demands through strengthened global value chains.

The effective schemes such as the Interest Equalization Scheme on pre- and post-shipment rupee export credit schemes and the schemes like the Trade Infrastructure for Export Scheme (TIES) and the Market Access Initiative (MAI), a Common Digital Platform for the Certificate of Origin to boost Free Trade Agreements have significantly boosted India’s exports growth trajectory. The initiatives such as districts as Export Hubs identifies export-potential products in each district and addresses bottlenecks while supporting local exporters and manufacturers to generate employment.

To attract domestic and foreign investments, the Government has introduced reforms such as the Goods and Services Tax (GST), corporate tax reduction, FDI policy changes, measures to reduce compliance burdens, and initiatives to boost domestic manufacturing through public procurement orders, the Phased Manufacturing Programme (PMP), and Quality Control Orders (QCOs). The Production-Linked Incentive (PLI) Schemes for 14 key sectors aim to enhance manufacturing capabilities and exports.

The Government has prioritized simplifying, rationalizing, digitizing, and decriminalizing its interface with businesses and citizens across all States and UTs. Over 42,000 compliances have been reduced so far, and more than 3,800 provisions have been decriminalized. The National Single Window System (NSWS) allows businesses to apply for 277 Central approvals, with information on 661 approvals available through the Know Your Approvals (KYA) module. The Jan Vishwas (Amendment of Provisions) Act, 2023, promotes trust-based governance, decriminalizing 183 provisions under 42 Acts managed by 19 ministries and departments.

India’s roadmap for Viksit Bharat@2047 emphasizes global competitiveness, innovation, and integration into global supply chains. Policy reforms have improved India’s rank in the World Bank’s Doing Business Report from 142nd in 2014 to 63rd in 2019. Also, India’s rank in the Global Innovation Index (GII) amongst 132 economies has improved from 81st in 2015 to 40th in 2023. The Startup India initiative, launched to foster innovation and entrepreneurship, has created a strong ecosystem, with 1.33 lakh DPIIT-recognized startups. Its action plan spans simplification, funding support, and industry-academia partnerships.

PM GatiShakti National Master Plan to support infrastructure and social sector planning through the PM GatiShakti. The implementation of PMGS promotes multimodal connectivity, improves last-mile connectivity, and contributes to both Ease of Doing Business and Ease of Living. To complement the PM GatiShakti NMP, the National Logistics Policy (NLP) has been introduced with the objective of reducing logistics costs and enhancing logistics efficiency across the country. These policies are driving innovation and enabling greater integration with global supply chains.

The E-Commerce Export Hub (ECEH) initiative aims to revolutionize India’s cross-border e-commerce, potentially reaching USD 100 billion in exports by 2030. These hubs connect SMEs, artisans, and One District One Product (ODOP) producers to global markets, boosting logistics efficiency and economic inclusion in Tier 2 and Tier 3 cities.

India’s path to global leadership

India’s ambitious roadmap envisions the nation as one of a significant economies by 2047. India’s role in international forums like the G20, BRICS, and WTO highlights its leadership in advocating for equitable trade practices. By addressing the concerns of developing nations and championing sustainable trade, India is reshaping global economic norms.

India has an opportunity to position itself as a leader in sustainable manufacturing practices. By integrating environmentally friendly practices into production processes, Indian manufacturers can appeal to conscious consumers worldwide while adhering to international standards. India is emphasizing on green manufacturing and renewable energy that aligns with global climate goals. Its leadership in the International Solar Alliance and commitment to achieving net-zero emissions by 2070 exemplify its focus on sustainable growth.

Global partnerships and regional growth

India’s Act East Policy and deeper engagement with Africa, the GCC, and CIS regions open new trade avenues. Initiatives like Bharat Mart in Dubai and the African Continental Free Trade Area showcase India’s proactive policy environment. India's engagement in regional trade agreements will bolster its competitiveness by providing preferential access to markets. Recent agreements with countries like Australia and the UAE exemplify India's commitment to enhancing trade ties globally. By pursuing more such partnerships, India can expand its export markets and strengthen its position within global value chains.

In conclusions, India's ascent in global trade competitiveness is a multifaceted journey characterized by resilience, innovation, strategic vision—and most importantly—a commitment towards sustainable development. From traditional strengths like agriculture & craftsmanship through cutting-edge sectors such as semiconductors & green technologies; India's trade landscape reflects dynamic synergy between growth & inclusivity while ensuring equitable opportunities across regions. With robust policy frameworks coupled with ambitious targets set forth; it stands poised today more than ever before—to lead this narrative towards achieving true economic leadership come year 2047!