The Union Budget 2025 introduces several digital trade reforms and export promotion measures aimed at enhancing India’s competitiveness in global markets. The government has focused on simplifying trade documentation, easing business compliance, and strengthening export incentives to drive economic growth.
Key Announcements
1. Bharat Trade Net (BTN) – A Unified Digital Trade Platform
- Bharat Trade Net (BTN) will be launched as a digital public infrastructure for international trade.
- It will serve as a unified platformfor:
- Trade documentation management
- Seamless financing solutions
- Faster customs clearance
- BTN will complement the Unified Logistics Interface Platform (ULIP) and align with global best practices.
2. Export Promotion Mission
- A dedicated Export Promotion Mission will be set up with sectoral and ministerial targets.
- The initiative aims to:
- Boost India’s manufactured goods and services exports.
- Facilitate trade agreements and market access expansion.
- Provide financial and logistical support to exporters.
3. Extending the Export Timeline for Handicrafts
- The export timeline for handicrafts has been extended from six months to one year, providing flexibility to artisans and exporters.
- A further three-month extension is allowed if needed.
- Nine new items have been added to the duty-free input list for handicrafts production.
4. Leather Sector Reforms
- To boost domestic leather manufacturing and exports, the government announced:
- Full exemption of Basic Customs Duty (BCD) on wet blue leather for imports.
- Removal of the 20% export duty on crust leather, benefiting small tanneries.
5. Marine Industry Support
- To enhance India’s seafood industry competitiveness, the following tariff reductions were introduced:
- Reduction of BCD from 30% to 5% on frozen fish surimi, used in fish processing and exports.
- Reduction of BCD from 15% to 5% on fish hydrolysates, benefiting the fish and shrimp feed industry.
6. Investment Incentives for Sovereign and Pension Funds
- The deadline for sovereign wealth funds and pension funds to invest in infrastructure has been extended by five years, up to March 31, 2030.
- This move will ensure continued capital inflow for trade infrastructure development.
Impact of These Measures
1. Digital Transformation of Trade
- Bharat Trade Net will streamline documentation and customs processes, reducing trade delays and costs.
- Easier financing solutions will ensure better capital access for exporters.
2. Boosting Exports and Manufacturing
- Handicrafts, leather, and marine product exports will expand with duty exemptions and timeline extensions.
- Financial support for exporters will help Indian businesses enter new global markets.
3. Strengthening India’s Position in Global Supply Chains
- Infrastructure investments by sovereign wealth and pension funds will enhance port logistics and export hubs.
- Lower tariffs on raw materials for key industries will make Indian exports more competitive globally.
4. Job Creation and Economic Growth
- Export growth will drive job creation in the manufacturing, logistics, and agriculture sectors.
- Digital infrastructure improvements will foster greater participation from MSMEs in global trade.
