India plans to triple its exports to $1.3 trillion by 2035 through a bold manufacturing revival, focusing on deregulation over heavy subsidies. Government sources revealed on January 23, 2026, that Prime Minister Narendra Modi’s administration is prioritizing 15 key sectors like semiconductors, metals, and leather to drive this growth.
Past efforts like “Make in India” in 2014 and a $23 billion incentive package in 2020 fell short of raising manufacturing’s GDP share to 25%. Now, the National Manufacturing Mission emphasizes cutting red tape, with a new ministerial panel led by bureaucrats to speed up land approvals, power permits, and financing. This replaces broad fiscal handouts with case-by-case aid.
The government will invest about 100 billion rupees ($1.2 billion) in infrastructure for 30 hubs, selected for port proximity and existing facilities, plus $218 million in grants for chips and energy storage. Coordination with states aims to unify labor laws and reduce overlapping checks, tackling barriers that hike costs for multi-state firms.
This structural shift aligns with Budget 2026-27, due February 1, amid India’s 6.6% GDP growth forecast by IMF—outpacing global peers. Exports currently stand at around $450 billion annually; tripling them could make India a top global supplier, boosting jobs for its 1.4 billion population. Experts see this as key to competing with China, leveraging supply-chain shifts and green tech. With consistent policies, manufacturing could hit 20% of GDP by 2030, fueling sustainable expansion.
FAQs [Frequently Asked Questions]
1. What is India’s export target by 2035?
The government aims to triple exports to $1.3 trillion annually by boosting manufacturing in 15 sectors through deregulation and modest infrastructure spending.
2. How does the new plan differ from past efforts?
Unlike “Make in India” subsidies, it focuses on cutting regulations, faster approvals, and targeted grants via a new panel, avoiding broad fiscal packages.
3. What funding is allocated for manufacturing hubs?
About 100 billion rupees ($1.2 billion) for 30 hubs’ infrastructure, plus $218 million grants for semiconductors and energy storage tech.
4. Which sectors will the initiative prioritize?
15 sectors including high-end semiconductors, metals, leather, and green energy, chosen for growth potential, jobs, and global supply-chain roles.