In a significant move to bolster India's export capabilities, the Department of Commerce informed the Standing Committee of Parliament on Commerce that it is developing an umbrella scheme with various components under the Export Promotion Mission (EPM). This initiative aims to enhance the competitiveness of Indian exports by addressing the pressing issues of finance and logistics costs that currently hinder India's export growth compared to global competitors.
The committee stated that the cost of finance and logistics in India remains relatively high. The Interest Equalisation Scheme, which compensates for the high cost of export credit, has offered some relief to exporters. However, the committee expressed concern about the withdrawal of this scheme and its merger with the EPM, which is not yet operational. The committee stated, "The Committee recommends that this Scheme should be extended till the operationalisation of the Mission. If a new scheme is being envisaged, the component of Interest Equalisation must be duly incorporated with adequate allocation of funds." This recommendation highlights the urgency of providing adequate support to Indian exporters, ensuring they remain competitive on the global stage.
Additionally, the committee noted that among the countries with which India has signed Free Trade Agreements (FTAs), significant trade imbalances exist. Countries including Australia, Indonesia, Japan, Korea, Malaysia, Philippines, Singapore, and Vietnam tend to export far more to India than they import, further stressing the need for strategic measures to bridge this gap. The Department of Commerce has been urged to target these countries with specific products and services.
Reflecting on the urgency of improving India's export performance, Uttar Pradesh Chief Minister Yogi Adityanath, speaking at an investor meet for a textile park proposed under the PM MITRA scheme, questioned why a country with 140 crore people was lagging behind Bangladesh, which exports a significant volume of readymade garments despite having a population of only 16 crore. He stated, "If Bangladesh can excel in readymade garment exports, why can't India achieve similar success?"
Adityanath underscored the opportunity for India to establish a globally recognized textile brand, citing the immense potential within the readymade garment sector. The Chief Minister emphasized the necessity of providing direction and opportunities to India's extensive workforce, particularly with Uttar Pradesh being a major consumer market. He mentioned the state’s significant population, noting that it serves not just its residents but also neighboring regions such as Nepal, Bhutan, Bihar, Jharkhand, Madhya Pradesh, Rajasthan, and Uttarakhand.
Moreover, Adityanath highlighted the importance of ensuring that the PM MITRA Park includes comprehensive facilities like sewing, dyeing, printing, packaging, and designing to effectively cater to market demands. Such investment in the local textile industry is seen as pivotal in transforming Uttar Pradesh into a hub for garment manufacturing.
On the agricultural front, India received a boost in its export initiatives when a consignment of 30 metric tonnes of GI-tagged jaggery from western Uttar Pradesh was sent for export to Bangladesh. This export is part of a broader strategy involving Farmer Producer Organizations (FPOs) that aims to enhance the direct export opportunities for farmers. The flag-off ceremony for this landmark initiative was held on January 30, 2025, organized by the Basmati Export Development Foundation (BEDF) under the aegis of the Agricultural and Processed Food Products Export Development Authority (APEDA).
Prasanna Chaudhary, Shamli MLA, praised the superior quality of jaggery produced in Muzaffarnagar and Shamli, emphasizing its high demand in international markets. He expressed gratitude for the support received from APEDA in facilitating these exports and underscored the critical role of the state government in maintaining international quality standards for agricultural products.
This recent success marks the beginning of direct agricultural exports from Uttar Pradesh, facilitated through FPOs and Farmer Producer Companies (FPCs). The Brijnandan Agro Farmer Producer Company, which was formed in 2023 and comprises 545 members, is noteworthy as it is the only FPO in Uttar Pradesh to receive financial assistance of Rs 4 lakh under the state's Agri Export Policy. The initiative illustrates a significant step forward in expanding agricultural export opportunities for the state and empowering farmers.
With training and technical support from BEDF, members of the Brijnandan Agro FPC are now well-equipped to meet international production and export standards. In addition to jaggery, the FPO is also involved in exporting sugarcane products, Basmati rice, and pulses, offering further avenues for agricultural growth.
“With APEDA’s support, this marks the third success story of an FPO from western Uttar Pradesh in agricultural exports,” noted the ministry, referring to previous successful exports of Basmati rice to Lebanon and Oman. Such initiatives underline the government's commitment to not only empowering farmers but also ensuring a sustainable and profitable future for India's agriculture sector.
This multifaceted approach reveals a comprehensive strategy to enhance India’s export potential across key industries, from textiles to agriculture. With concerted efforts from the government, stakeholders, and industry players, there is hope that India will soon be able to dramatically improve its standing in global trade.
