India’s Trade Secretary has emphasized that the government is focused on protecting domestic supplies to improve local manufacturing, while exports take a backseat in the current policy framework.
This approach reflects India’s changing economic strategy amid global uncertainties, such as trade disruptions, geopolitical tensions, and shifting supply chains. In recent statements and policy guidelines, officials have stressed the importance of securing raw materials, critical components, and essential goods for Indian industries. This strategy aims to reduce dependence on imports, especially from major sources like China, and to strengthen self-reliance through the broader Aatmanirbhar Bharat (Self-Reliant India) initiative.
The Union Budget for 2026-27 and related measures highlight this focus. Reducing tariffs on capital goods, raw materials, and inputs for sectors like energy transition, electronics, and pharmaceuticals is designed to lower production costs and build strong domestic capacities. For example, incentives are aimed at key areas such as semiconductors, active pharmaceutical ingredients (APIs), and defense equipment, where at least 65% of needs are now met locally. These steps ensure that essential supplies stay available for Indian manufacturers, supporting job creation, industrial growth, and long-term economic stability.
While exports remain important, India is targeting ambitious goals, such as tripling goods exports to $1.3 trillion by 2035 through deregulation, manufacturing hubs, and free trade agreements. However, the clear message is that domestic priorities come first. Recent trade deals, including those with the EU and interim arrangements with the US, have balanced export gains—such as better access for textiles, leather, and marine products—with protections for sensitive sectors like agriculture and dairy. Officials have repeatedly emphasized the need to protect domestic interests, despite challenges in global markets from tariffs and conflicts.