The Centre is implementing a fundamental shift in its export promotion strategy, moving beyond traditional financial incentives to address structural bottlenecks that hinder exporters. According to reports from Business Standard, the government plans to strengthen exports by tackling logistics, certification, branding and market access while involving state governments more closely in export promotion activities. This strategic approach aligns with the broader definition of export promotion as a government strategy that encourages domestic firms to sell goods and services in foreign markets through various tools including tax breaks, export credit, trade missions, or agreements that make exporting easier. The DGFT has proposed greater use of digital platforms such as Trade Connect and BharatTradeNet to simplify documentation, improve dissemination of trade intelligence, facilitate buyer-seller connections, and help exporters access government schemes.
As part of the new strategy, states have been asked to play a more active role in implementing export promotion programmes through district-level action plans, identifying new products with export potential, and strengthening industrial clusters. The commerce ministry's Directorate General of Foreign Trade (DGFT) has proposed periodic reviews of programmes under the Export Promotion Mission through State Export Promotion Committees and District Export Promotion Committees. The plan involves internal scorecards to assess states' export performance and implementation of export action plans, as reported by Business Standard. This framework represents the practical application of export promotion policies that reduce the cost and risk of entering another country's market, especially for smaller firms that do not have the resources to expand alone.
Indonesian businesses are facing significant uncertainty as US tariffs on Indonesian products are set to increase from 10% to 18% following the expiration of temporary measures. According to Kompas, the temporary 10% rate will remain in effect until around July 24, 2026, after which implementation will be carried out gradually under Article 301 of the US Trade Act of 1974. The Indonesian Employers Association (Apindo) warns that the source of uncertainty is not only related to tariff magnitude but also to policy predictability and implementation certainty, which affects production decisions, export contracts, and medium-term investments. Business actors are particularly concerned about the impact on labor-intensive sectors such as textiles, footwear, and furniture, which rely heavily on US market access for employment absorption. The export-oriented manufacturing sector is identified as the most vulnerable industrial group if US tariffs increase, with the five largest product groups to the US in 2025 including machinery and electrical equipment, knitted goods, footwear, non-knitted apparel, and vegetable and animal fats and oils.
The strategic shift comes as the World Trade Organization (WTO) concluded its eighth Trade Policy Review of India last week, urging New Delhi to address structural challenges including high trade costs, regulatory complexity and infrastructure gaps to sustain strong economic growth and achieve the Viksit Bharat vision of becoming a developed economy by 2047. According to Business Standard, the Centre is counting on this strategy to sustain merchandise exports and achieve the target of increasing goods shipments to $1 trillion by 2030. New Delhi has already implemented two free trade agreements with Oman and the United Kingdom in the current year, with the next being India's trade deal with the European Union likely to be signed by December and enforced in the first half of 2027.
The DGFT has proposed greater use of digital platforms such as Trade Connect and BharatTradeNet to simplify documentation, improve dissemination of trade intelligence, facilitate buyer-seller connections, and help exporters access government schemes. As reported by Business Standard, the government believes the biggest constraint to export growth is no longer market access alone but the ability of firms, particularly micro, small and medium enterprises (MSMEs), to utilise trade agreements and compete globally. The Centre had initial conversations with state government officials and industry representatives last month at the Board of Trade meeting to discuss measures for improving utilisation of free trade agreements and strengthening district-level export promotion. Meanwhile, Indonesian businesses are focusing on domestic structural reforms including VAT restitution disbursement, permit simplification, and fiscal incentives to enhance export competitiveness amid global trade uncertainties.
