Export Strategy: India Capitalises on Post-China Manufacturing Shift
- Quit Plastic
- Apr 10
- 4 min read
Updated: Jul 29
Introduction
The global trade landscape is shifting, and India is seizing the opportunity. With U.S. tariffs on Chinese goods reaching as high as 125%, Indian exporters—especially in sustainable sectors like sugarcane bagasse tableware—are seeing new demand from Western buyers. But behind this rising opportunity is a robust ecosystem of government support, pro-export reforms, and trade facilitation initiatives that make India a more attractive, stable, and scalable supply partner.
This blog examines the crucial role of Indian government policies in strengthening the country's position as a leading global manufacturing hub.
1. Trade Agreements and Duty Benefits that Encourage Exports
The Indian government has strategically negotiated trade agreements and tariff relaxations that make Indian goods more affordable for Western buyers:
· FTA negotiations with the UK, EU, and Australia that lower import duties
· India-UAE CEPA allows near-zero duty access to the Gulf—a key re-export zone to the West
· MEIS & Rodtep schemes offer duty credit scrips and tax refunds on exports
· SEZ incentives reduce input costs and offer infrastructure-ready zones for exporters
These benefits enable Indian manufacturers to maintain competitive prices while ensuring quality and adhering to compliance standards.
2. Infrastructure Boost: Ports, Rail, and Logistics Upgrades
Export-friendly policies aren't just on paper. Massive infrastructure investments under:
· Sagarmala Project for modernising ports and reducing turnaround time
· Dedicated Freight Corridors (DFC) for faster rail cargo movements
· PM Gati Shakti National Master Plan for unified logistics and multimodal connectivity
For exporters of eco-friendly tableware, these upgrades mean faster shipping to the U.S. and Europe, reduced container congestion, and smoother inland transport of raw materials. The Sagarmala Project has modernised ports, reducing turnaround time. The Dedicated Freight Corridors (DFC) have facilitated faster rail cargo movements. The PM Gati Shakti National Master Plan has unified logistics and provided multimodal connectivity, further enhancing the efficiency of the supply chain.
3. EODB (Ease of Doing Business) Reforms and Digitalisation
Over the last decade, India has climbed more than 75 places in the World Bank's Ease of Doing Business ranking. Key reforms aiding exporters include:
· Single-window clearance systems
· Online GST refund and export documentation portals
· De-licensing of manufacturing sectors
· Digitisation of customs processes via ICEGATE and SWIFT
These changes streamline processes and reduce export timelines. A bagasse tableware order can now be processed, packed, and cleared for shipment in a fraction of the time it took a few years ago.
4. MSME Support and Export Credit Access
Most eco-product manufacturers in India fall under the Micro, Small, and Medium Enterprises (MSME) category. Recognising their potential, the government offers:
· Interest subvention schemes (3-5% for exporters)
· Credit Guarantee Trust Funds to reduce loan risk for banks
· Export Development Funds for participation in global expos and B2B meetings
· Priority allocation of land and utilities in industrial parks
These financial tools help manufacturers scale, automate, and meet significant international demand without cash-flow strain. The interest subvention schemes, credit guarantee trust funds, export development funds, and priority allocation of land and utilities in industrial parks are all designed to ease the financial burden on MSMEs and encourage their growth in the export market.
5. Quality and Compliance Enablement
To meet stringent U.S. and EU eco-standards, Indian exporters receive help through:
· QCI (Quality Council of India) certification support
· BIS and FSSAI testing labs made more accessible to exporters
· Collaboration with EU/US standardisation bodies
· Workshops on ISO 22000, BRCGS, and FDA registration processes
The government's goal is to ensure that Indian eco-goods not only meet minimum standards but also exceed them.
6. Make in India & Aatmanirbhar Bharat: Strategic Positioning
The Make in India and Aatmanirbhar Bharat campaigns have brought manufacturing to the centre of India's economic strategy. Export-oriented sectors are prioritised with:
· Tax breaks for green product manufacturing
· Support for indigenous R&D in biodegradable materials
· Emphasis on replacing Chinese imports with Indian alternatives
· Start-up India seed funds for sustainable product innovators
This shift enables companies, such as sugarcane bagasse tableware manufacturers, to compete globally without over-reliance on imports.
7. Export Promotion Councils and Global Market Access
Dedicated export bodies like FIEO, CHEMEXCIL, and CAPEXIL offer Indian exporters:
· Direct matchmaking with foreign buyers
· Support for certifications and documentation
· Participation in global trade fairs like Ambiente (Germany), BioFach, and NY NOW
· Sector-specific market intelligence
Councils like EPCH (Export Promotion Council for Handicrafts) have created new categories for sugarcane bagasse products to highlight eco-conscious offerings.
Conclusion: A Government-Backed Growth Engine
India's export growth isn't accidental. It results from a coordinated policy push across infrastructure, finance, compliance, and diplomacy. While post-tariff scenarios have opened new doors, the government's focused support enables Indian exporters to navigate them confidently.
For buyers in the West, selecting Indian suppliers now means partnering with a country that has the capacity and policy ecosystem to deliver reliably, ethically, and sustainably.
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