Union Budget exports push targets jobs, manufacturing and global value chains
New Delhi: The Union Budget 2026–27 placed exports at the centre of India’s growth strategy, with the government announcing a wide set of measures to boost jobs, manufacturing capacity and global value chain integration.
Officials said the Budget reaffirmed India’s commitment to building a competitive and resilient export ecosystem through macroeconomic stability, fiscal discipline and sustained public investment. The government identified exports as a key driver of employment, industrial upgrading, foreign exchange earnings and long-term economic resilience.
The Budget announced a sharp manufacturing push across strategic and labour-intensive sectors to strengthen export competitiveness and reduce import dependence. Key initiatives included Biopharma SHAKTI, the launch of India Semiconductor Mission 2.0, expansion of the Electronics Components Manufacturing Scheme and development of Rare Earth Corridors. The government also proposed new Chemical Parks and targeted support for capital goods and container manufacturing.
Labour-intensive sectors such as textiles, footwear, sports goods, handicrafts and handlooms received renewed focus through integrated parks, modernisation schemes and skilling initiatives. Officials said the revival of 200 legacy industrial clusters would lower costs, improve productivity and strengthen traditional export hubs.
Union Budget exports focus backed by SEZ, logistics and MSME reforms
The Budget proposed major reforms in Special Economic Zones to improve capacity utilisation while preserving export orientation. Measures included limited Domestic Tariff Area sales at concessional duties and extended tax incentives for cloud and data-centre operations to attract global investors.
To cut export costs, the government announced infrastructure upgrades covering Dedicated Freight Corridors, new National Waterways, coastal shipping promotion, logistics parks and container manufacturing. Officials said these steps would reduce dwell time and improve supply-chain efficiency, especially for tier-2 and tier-3 cities.
The services sector also received a strong export push. The Budget proposed a High-Powered Education-to-Empowerment and Enterprise Standing Committee to guide reforms and target a 10% share in global services exports by 2047. It announced tax and regulatory measures for IT and IT-enabled services, including higher safe-harbour thresholds, automated approvals and faster advance pricing agreements.
To support MSMEs, the Budget unveiled a ₹10,000 crore SME Growth Fund, enhanced credit guarantee mechanisms and mandatory use of TReDS by CPSEs. Officials said these measures would ease credit access and help MSMEs scale exports.
The Budget also announced trade facilitation steps such as removal of the ₹10 lakh cap on courier exports, electronic sealing of cargo and expanded non-intrusive customs scanning. Sector-specific initiatives in agriculture, marine products, pharmaceuticals, tourism and AVGC were also proposed to widen India’s export base.
