The Union Budget 2025 is set to introduce a range of trade-friendly policies aimed at revitalizing India’s export sector. The government is focusing on measures such as financial incentives, tax benefits, and sector-specific support to boost competitiveness in global markets. This article highlights the key initiatives, their implications, and the advantages they offer to exporters.

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Key Trade Policy Measures and Their Benefits

Policy Initiative	Description	Advantages
Revival of Export Schemes	Reintroduction of the Interest Equalisation Scheme (IES) to provide interest benefits on export loans.	Lower borrowing costs for exporters, boosting competitiveness.
Focus on MSMEs	Modified IES tailored for MSMEs after the previous scheme expired.	Encourages small businesses to expand globally.
Flexible Financial Support	Introduction of collateral-free loans to help exporters manage global uncertainties.	Reduces financial risk, ensuring stable growth.
Income Tax Exemptions for IT/ITeS	SEZ-based IT/ITeS firms may get tax exemptions if they reinvest profits into workforce expansion.	Encourages job creation and skill development.
Enhanced R&D Tax Deductions	Proposal for 200-250% tax deduction on research and development (R&D) expenses.	Promotes innovation and competitiveness in exports.
Tax Rate Extensions for Garment Units	Extension of 15% concessional tax rate for new garment manufacturing units.	Enhances cost-efficiency and global pricing competitiveness.
Market Promotion Funding	Additional financial support for trade promotion, targeting key export markets like the US.	Increases visibility and demand for Indian products.
Sector-Specific Discussions	Support for green technology, labor reforms, and demand-driven policies in automotive and apparel sectors.	Aligns industries with global sustainability and market needs.

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Impact on India’s Trade and Export Landscape

1. Revitalizing Export Finance

With the revival of export incentive schemes, Indian businesses will find it easier to secure low-cost financing. MSMEs, which make up a significant portion of India’s export sector, will particularly benefit from these measures.

2. Strengthening IT & Technology-Driven Exports

Tax incentives for IT/ITeS firms will encourage reinvestment into workforce development, further solidifying India’s position as a global technology hub. R&D tax benefits will accelerate innovation, making Indian products more competitive in international markets.

3. Boosting Manufacturing and Apparel Exports

Lower tax rates for garment manufacturers and sector-specific incentives for industries like automobiles will improve cost efficiencies and encourage expansion. These policies will help Indian exports penetrate deeper into high-demand global markets.

4. Enhancing Global Market Reach

Increased funding for market promotion will ensure Indian exporters have greater visibility and support in key regions like the US. This will drive demand and create a stronger foothold for Indian goods abroad.

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Conclusion

The Union Budget 2025 reflects a strategic shift towards fostering export growth by supporting MSMEs, providing financial relief, and encouraging innovation. These measures will help India strengthen its global trade position, making exports more competitive and resilient against economic uncertainties. For businesses and exporters, this presents a timely opportunity to leverage policy-driven advantages and expand their global footprint.