India Targets $1.3 Trillion Exports by 2035 With Manufacturing Reboot

By Admin

24 Jan, 2026

Introduction
India is setting an ambitious goal to triple its exports to $1.3 trillion by 2035, signalling a major shift in how the country approaches manufacturing growth. Moving away from heavy subsidy-led models, the government is now focusing on deep structural reforms to make Indian manufacturing globally competitive, efficient, and investment-friendly.

A New Manufacturing Push for a New Decade
Under the third major manufacturing initiative led by Prime Minister Narendra Modi, the government plans to prioritise 15 key sectors. These include high-value industries such as semiconductors and metals, alongside labour-intensive sectors like leather. The objective is not only to boost exports but also to accelerate overall economic growth and strengthen India’s position in global supply chains.

Learning From Past Initiatives
Earlier programmes such as the 2014 Make in India campaign and the $23 billion production-linked incentive scheme launched in 2020 aimed to raise manufacturing’s contribution to 25% of GDP. However, officials involved in drafting the new policy have acknowledged that these efforts delivered only incremental progress. Manufacturing growth improved, but not at the scale required to transform India into a global manufacturing powerhouse.

As one official noted, past initiatives lacked the bold, cohesive strategy needed to drive transformative change across sectors and states.

Modest Funding With a Structural Focus
Unlike previous schemes, the new approach will rely on limited but targeted funding. The government plans to invest around ₹100 billion (approximately $1 billion) to develop infrastructure for nearly 30 manufacturing hubs across the selected sectors. An additional $218 million in grants will support advanced areas such as semiconductor fabrication and energy storage.

Rather than pre-announced incentive packages, financial support will now be decided on a case-by-case basis. A newly formed government panel will evaluate proposals and recommend support based on strategic importance and long-term impact, ensuring funds are used more effectively.

The National Manufacturing Mission
This reform-led strategy is being implemented under the National Manufacturing Mission, which was announced in last year’s budget without detailed disclosures. Officials have indicated that more clarity and announcements may follow in the upcoming Union Budget on February 1.

The mission represents a clear departure from subsidy-driven industrial policy, placing greater emphasis on regulatory efficiency, infrastructure readiness, and coordinated policymaking.

Faster Clearances and Policy Coordination
A central feature of the new framework is the creation of a high-level panel chaired by a minister and comprising senior bureaucrats, including the cabinet secretary. The panel’s role will be to speed up regulatory approvals, facilitate land acquisition, and enable access to cheaper financing for large manufacturing projects.

It will also work closely with state governments to ensure reliable and affordable power supply for manufacturing hubs, a long-standing concern for industrial investors.

Strategic Manufacturing Hubs and Regulatory Harmony
Manufacturing locations have been selected based on existing infrastructure, geographic advantages, and proximity to ports. The mission also aims to harmonise regulations across states by addressing inconsistent labour laws and multiple permit requirements that have historically increased operational costs for businesses operating nationwide.

Additionally, efforts will be made to reduce red tape by cutting overlaps in quality and standards checks and aligning tariffs with industry needs and national priorities.

Conclusion
India’s plan to reach $1.3 trillion in exports by 2035 marks a decisive shift toward reform-led industrial growth. By focusing on structural changes, faster clearances, regulatory harmonisation, and targeted investments, the government aims to create a manufacturing ecosystem that is competitive, scalable, and resilient. If executed effectively, this manufacturing reboot could redefine India’s role in global trade over the next decade.