Introduction

Today, India has been one of the fastest growing economies in the world with demonstrated flexibility and adaptability. During the past few decades India has firmed up its position in the global economy by boosting the entrepreneurship culture and technological growth leveraging its demographic benefits. With this, the country has successfully transitioned from being an agriculture-driven economy to an industrial and service-oriented one, displaying growth in several key sectors.

During the period, India has experienced a healthy annual Gross Domestic Product (GDP) growth rate driven by:

1. Robust domestic demand;
2. Expanding middle-class population, and;
3. A dynamic Service sector.

The COVID-19 pandemic however presented challenges resulting in contraction in 2020. However, prompt government actions and implementation of policies to reduce the impact of the pandemic led to a steady recovery, pushing the economy to greater heights. In this transition of the Indian economy, exports have played a crucial role with massive contribution to its GDP.

According to the World Bank, India’s exports of goods and services as a percentage of GDP stood at 21.18 % in 2024 as compared to 13% in 2000 leading to:

1. The enhancement of the export sector;
2. Improvement in the foreign exchange reserves;
3. Stabilisation of the national currency, and;
4. Aiding the financial health of the country.

Growing exports have also led to:

1. Increased employment opportunities;
2. Promotion of industrial development, and;
3. Technological advancements.

Strategies to achieve US$ 2 trillion export target BY 2030

Achieving a target of US$ 2 trillion in exports holds great significance for India in terms of the social and economic aspects. The objective of this goal is not just about achieving the US$ 2 trillion worth exports, but also about overall growth of the country in becoming a global force, dominating exports worldwide.

Strategy to achieve this target by 2030 revolves around adopting an approach that involves:

1. Government policy initiatives;
2. Enhancement of infrastructure, and;
3. A focus on the key sectors driving exports.

To achieve this ambitious target, the government has taken various steps providing initiatives to enhance exports and reduce import dependence.

Some of these initiatives include:

1. Make in India Programme

The Make in India programme was launched in 2014 with the aim of transforming India into a globally recognised manufacturing hub. The introduction of this policy increased the domestic and foreign investment in the manufacturing sector.

As per reports, the manufacturing sector contributed 16-17% to GDP in the pre-pandemic period and was forecast to reach 25% in 2025.

In 2014, the manufacturing sector employed over 27.3 million professionals with the help of the Make in India initiative and was anticipated to create 100 million jobs by 2022.

Make in India initiative has key components such as:

1. Sector-specific targets;
2. Simplification of regulatory norms, and;
3. Promotion of investment in India.
4. Goods and Services Tax (GST)

The Government of India launched the Goods and Services Tax (GST) in 2017 as part of easing the regulatory norms. By clubbing various taxes for suppliers and manufacturers into one, this initiative has helped to simplify the tax structure, reducing thereby:

1. The tax complications, and;
2. Enhancing transparency in the system.

The government has adopted a Sector-specific approach towards sectors that contribute largely to exports as part of this initiative with:

1. The automotive sector with a target to achieve production of 30 million units by 2026.
2. The electronics sector with the target to reach production of US$ 190 billion worth of mobile phones and components by 2025.

By aiding the expansion of production leading to higher exports from the country, the Make in India initiative has boosted investment in India.

3. Atmanirbhar Bharat (Self-Reliant India)

The Atmanirbhar Bharat programme was launched by the Government in 2020 with the primary aim to make India a Self-sufficient economy by boosting local manufacturing and increasing exports, while reducing dependence on imports.

The key components of this programme included:

1. The Production Linked Incentive (PLI) schemes;
2. Strengthening of the Micro, Small, Medium Enterprises (MSME) sector, and;
3. Introduction of policy reforms by the government.

As part of the PLI schemes, the government allocated approximately US$ 27 billion across 13 key sectors between 2020 and 2025. The key sectors covered included:

Electronics – The target for production in this sector was set at US$ 153 billion, generating employment to approximately 1 million professionals.

Pharmaceuticals – The focus was laid on production of high-value drugs and Active Pharmaceutical Ingredients (APIs).

Automobiles – The goal for this sector was promoting the manufacturing of Electric Vehicles (EVs) and various other components of the automotive sector.

Another Key Components of this programme included:

1. To strengthen the MSME through the launch of the Emergency Credit Line Guarantee Scheme (ECLGS) with a budget of US$ 40 billion to support companies that were majorly affected by the COVID-19 Pandemic.
2. Policy reforms such as the implementation of National Infrastructure Pipeline (NIP) with a projected investment of approximately US$ 1.4 trillion between 2020 and 2025 to develop critical infrastructure, aiding exports.
3. Production Linked Incentive scheme (PLI Scheme)

The Scheme aims:

1. To enhance manufacturing capabilities;
2. Increase export competitiveness, and;
3. Attract more global investments in the country.

Of the 13 sectors shortlisted, three sectors, Electronics and IT hardware, Pharmaceuticals, and Automobiles and Auto components with significant outlays and production plans are expected to:

Electronics sector: Expected to generate incremental production of approximately US$ 153 billion and exports worth approximately US$ 100 billion by 2025.

Pharmaceuticals: Expected to focus on production of high-value drugs and APIs with an outlay of approximately US$ 2 billion.

Automobiles and auto components: Manufacture of EVs and their components providing an outlay of approximately US$ 7.6 billion expected to enhance the production and export capacity of India.

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