The Union Budget 2026-27 places exports and international trade at the centre of India’s growth strategy, outlining a broad set of reforms and investments aimed at boosting employment, scaling manufacturing and strengthening India’s integration with global value chains.
Anchored in fiscal discipline, macroeconomic stability and sustained public capital expenditure, the Budget advances a comprehensive agenda to position India as a competitive and resilient global trading partner, aligned with the vision of a Viksit Bharat.
Recognising exports as a key driver of jobs, industrial upgrading and foreign exchange earnings, the Budget announces measures spanning manufacturing, services, Special Economic Zones (SEZs), infrastructure, logistics and ease of doing business.
Manufacturing Push Across Strategic and Labour-Intensive Sectors
A major focus of the Budget is on scaling domestic manufacturing in both strategic and labour-intensive sectors to enhance export competitiveness and reduce critical import dependence. Key initiatives include Biopharma SHAKTI, the launch of India Semiconductor Mission 2.0, expansion of the Electronics Components Manufacturing Scheme, development of Rare Earth Corridors, establishment of Chemical Parks and targeted support for capital goods and container manufacturing.
Labour-intensive sectors such as textiles, footwear, sports goods, handicrafts and handlooms receive renewed support through integrated industrial parks, modernisation programmes, skilling initiatives and sustainability-linked interventions. The revival of 200 legacy industrial clusters through infrastructure and technology upgrades is expected to lower costs, improve productivity and strengthen traditional export hubs.
Trade Facilitation for Key Export Sectors
The gems and jewellery sector, one of India’s largest foreign exchange earners, is set to benefit from measures aimed at easing trade and logistics bottlenecks. The removal of the ₹10 lakh value cap on courier exports is expected to support small exporters and e-commerce-led shipments, while streamlined handling of returned consignments will reduce friction in cross-border B2C trade.
Extensions of concessional customs duty regimes for gold and silver dore bars and lab-grown diamond inputs are also expected to support domestic refining and value addition.
Services and Digital Exports Get Policy Thrust
The services sector receives a strong policy push, with the Budget proposing a High-Powered Education-to-Empowerment and Enterprise Standing Committee to guide coordinated reforms. The government has set an aspirational target of achieving a 10 per cent share in global services exports by 2047.
Tax and regulatory reforms for IT and IT-enabled services—including a unified classification of IT services, higher safe-harbour thresholds, automated approvals and faster Advance Pricing Agreements—are expected to enhance India’s attractiveness for Global Capability Centres and international service providers.
The Budget also proposes tax holidays up to 2047 for foreign companies providing global cloud services through India-based data centres, along with safe-harbour norms for related-party services, to accelerate investment in digital infrastructure.
SEZ Reforms and Infrastructure Push
Reforms in Special Economic Zones aim to improve capacity utilisation and economies of scale while preserving export orientation. Measures include one-time facilitation for limited Domestic Tariff Area sales at concessional duties and extended tax incentives for cloud and data-centre operations within SEZs.
A strong infrastructure push underpins the export strategy, with increased public capital expenditure, expansion of Dedicated Freight Corridors, new National Waterways, promotion of coastal shipping, logistics parks and high-speed rail corridors. These initiatives are expected to reduce logistics costs, improve supply-chain efficiency and enhance export competitiveness, particularly for tier-2 and tier-3 cities.
Ease of Doing Business and MSME Support
The Budget advances a technology-driven, trust-based approach to trade facilitation, with proposals including electronic sealing of export cargo, automated customs processes, expansion of non-intrusive scanning, longer validity of advance rulings and removal of value caps for courier exports.
Micro, small and medium enterprises (MSMEs), which form the backbone of India’s exports, receive focused support through a ₹10,000 crore SME Growth Fund, enhanced credit guarantee mechanisms, mandatory use of TReDS by CPSEs and integration of GeM with TReDS to improve access to timely finance.
Laying the Groundwork for Sustained Export Growth
Sector-specific initiatives in agriculture, marine products, pharmaceuticals, tourism, AVGC and allied health services further broaden India’s export base.
Overall, the Union Budget 2026–27 presents a coherent and forward-looking export strategy, combining manufacturing scale-up, services excellence, logistics modernisation and regulatory simplification. The measures are aimed at driving sustained export growth, creating jobs and strengthening India’s role as a reliable global trading partner over the long term.
The post Union Budget 2026-27 puts exports at core of growth strategy appeared first on DD India.
