YOJANA April 2025

YOJANA April 2025: 

Chapter 1: Enhancing Skills for India’s Exports

Introduction

Exports constitute a fundamental driver of economic growth, employment generation, and foreign exchange accumulation. For India to realize its vision of becoming a USD 20 trillion economy, export-led growth remains strategically imperative. India possesses advantageous demographics, expanding manufacturing capabilities, and advancing digital infrastructure that position it to emerge as a global export powerhouse, particularly in high-tech sectors including semiconductors, electric mobility, and digital services.

Current Trends in India’s Exports

Sectoral Growth Dynamics

India’s export performance demonstrates resilience across multiple sectors:

• Non-petroleum exports expanded at 7% growth in FY23, anchored by pharmaceuticals, chemicals, electronics, and engineering goods

• Electronics exports registered remarkable growth, escalating from $11 billion (FY21) to $26 billion (FY24)—a 136% increase driven largely by the Production Linked Incentive (PLI) scheme

• Textiles sector rebounded with 7.6% growth after previous stagnation

• Renewable energy and electric vehicles (EVs) are emerging as new growth catalysts for India’s export profile

Global Context

Despite a global trade slowdown of 2% in 2023, India maintained export momentum through a diversified export base and incentivized policy frameworks. Strategic trade agreements like the India-UAE Comprehensive Economic Partnership Agreement (CEPA) and India-Australia Economic Cooperation Trade Agreement (ECTA) are opening new market access opportunities.

Significance of Export-Led Growth

Employment Generation and Regional Equity

Export-oriented industries can generate 200+ million jobs, addressing chronic unemployment. Industrial hubs in Tamil Nadu, Karnataka, and Uttar Pradesh contribute to balanced regional development by distributing manufacturing activities beyond traditional centers.

Technological Upgradation

Integration into Global Value Chains (GVCs) enhances competitiveness, innovation, and access to cutting-edge technology. This positioning in international supply networks facilitates knowledge transfer and skill development across sectors.

Strategic and Economic Diplomacy

Robust export growth strengthens India’s bargaining power in international negotiations and deepens strategic partnerships through bilateral and multilateral trade pacts.

Challenges to Export Growth

Infrastructure and Logistics Bottlenecks

India’s logistics costs constitute 14-16% of GDP, significantly higher than developed nations (8-10%). Critical gaps include port congestion, last-mile connectivity deficiencies, and slow customs processing.

Structural and Sectoral Constraints

Excessive reliance on traditional sectors (IT, petroleum products, gems/jewellery) limits diversification. Low value-addition in textiles and agriculture constrains profitability and global competitiveness.

Regulatory and Market Access Issues

Non-tariff barriers (NTBs) from EU/US substantially hamper exports. For instance, 3,925 Indian food shipments were rejected by USFDA over five years. Lack of globally accredited testing infrastructure creates compliance challenges for exporters.

Financial and Geopolitical Constraints

MSMEs face high credit costs and limited awareness of export schemes. Global protectionism, carbon border taxes, and geopolitical conflicts disrupt supply chains unpredictably.

Government Initiatives

Policy and Financial Support Framework

Digital Infrastructure Advancement

BharatTradeNet streams trade documentation similar to Singapore’s TradeNet model, while the Unified Logistics Interface Platform (ULIP) provides real-time supply chain visibility.

Skill Development Initiatives

Skill India Mission 2.0 aligns workforce development with AI, green technology, digital trade, and advanced manufacturing—preparing future-ready workforce for evolving sectors.

Strategies for Enhancing Export Competitiveness

Infrastructure Modernization

• Develop export hubs near ports and implement AI-driven customs systems

• Strengthen Sagarmala and Bharatmala projects for connectivity

• Integrate dry ports and logistics parks for seamless cargo movement

Diversification and Value Addition

• Focus on green hydrogen, semiconductors, aerospace, and precision tools

• Promote processed agri-products, technical textiles, and organic food for niche global markets

MSME Empowerment

• Scale up RAMP and TIES schemes for productivity enhancement

• Enable MSME participation in global public procurement through GeM platform

Quality and Compliance

• Build globally accredited testing laboratories

• Negotiate Mutual Recognition Agreements (MRAs)

• Promote ISO, Codex, and HACCP standards adoption

Digital Trade Leveraging

• Expand cross-border e-commerce through ONDC

• Establish robust digital payment infrastructure

• Facilitate digital onboarding and product traceability

Brand Building and R&D

• Launch “Brand India” campaign emphasizing innovation and sustainability

• Increase public-private R&D investment in AI, biotech, semiconductors, and pharmaceuticals

Chapter 2: India’s Turf: A Global Investor Haven

Introduction

India’s economic trajectory over the past decade reflects transformation from a policy-constrained economy to a global investment magnet. The Viksit Bharat @2047 initiative represents India’s comprehensive vision for inclusive development and global competitiveness. The PwC Global CEO Survey 2024 positions India among the top 5 global investment destinations, signaling international endorsement of India’s reform trajectory.

Progressive Trends and Strategic Initiatives

Domestic Production and Self-Reliance

Make in India targets strategic sectors—electronics, defense, pharmaceuticals—reducing import dependency. India’s mobile phone manufacturing capacity expanded 20-fold in less than a decade, demonstrating policy effectiveness.

PLI Schemes allocate ₹1.97 lakh crore across 14 sectors to boost domestic manufacturing and catalyze employment. The IPR ecosystem accelerates patent approvals and encourages innovation.

Digital Infrastructure forms the backbone for digital entrepreneurship through Aadhaar stack, DigiLocker, and ONDC platforms.

Structural and Policy Reforms

Global Recognition

India ranks as the 5th most attractive investment destination (up from 9th in 2023). The World Bank Logistics Performance Index shows improvement from 44th to 38th position, while the Global Innovation Index places India at 40th (up from 81st in 2015).

FDI Liberalization and Ease of Doing Business

FDI Trends

Cumulative FDI (2014-24) exceeded $650 billion (119% growth vs. previous decade). Manufacturing FDI increased from $98 billion to $165 billion, while digital and fintech sectors attracted over $70 billion in the last five years.

Business Environment Outcomes

Over 1 lakh DPIIT-recognized startups operate, with 110+ unicorns created. H1 FY25 IPOs raised 2x more funds than FY24, with robust SIP inflows (~₹19,000 crore monthly).

Financial Integration

Inclusion in JP Morgan’s GBI-EM index (2024) validates macroeconomic stability, with expected Bloomberg index inclusion attracting $30-40 billion in passive flows.

Ripple Effects on the Economy

Employment and MSME Growth

PM Gati Shakti and industrial corridors have catalyzed local entrepreneurship and supply chain resilience.

Skill Development and Financial Inclusion

Skill India Mission trained over 1.5 crore youth across 500+ trades. MUDRA Yojana disbursed ₹24 lakh crore with ~70% beneficiaries as women. JAM Trinity achieved financial inclusion through 50+ crore bank accounts.

Infrastructure and Industrial Capabilities

Semiconductor Mission allocates ₹76,000 crore with TATA Group and Micron establishing fabrication plants.

Mega Infra Push includes PM Gati Shakti, National Infrastructure Pipeline (₹111 lakh crore), high-speed rail, and green energy corridors.

Renewable Energy: India ranks 4th largest globally, targeting 500 GW by 2030.

Challenges and Way Forward

Geopolitical Volatility disrupts supply chains, while structural reforms (land acquisition, labor code implementation) face state-level resistance. Judicial delays in contract enforcement and skill gaps in AI and green hydrogen persist.

Future Strategy:

• Scale R&D spending from 0.7% to 2% of GDP

• Align education with future-ready skills

• Accelerate green finance and ESG compliance

• Finalize FTAs with EU and UK

• Ensure institutional stability

Conclusion

India’s transformation into a global investment haven stems from deliberate policy calibration and visionary leadership. Sustained reform momentum and strategic positioning position India to realize the Viksit Bharat @2047 vision and become a decisive force in global economic governance.

Chapter 3: Transforming India’s Financial Landscape

Introduction

India’s aspiration toward ‘Viksit Bharat by 2047’ is fundamentally intertwined with transformative financial reforms promoting inclusive growth and technological innovation. Reforms including FDI liberalization in insurance, rural banking expansion, and infrastructure financing align with Sustainable Development Goals for poverty reduction and financial inclusion.

Key Reforms and Their Implications

1. Liberalization of FDI in Insurance

Policy Change: FDI cap increased from 74% to 100%, facilitating global player entry.

Financial Impact: $6.5 billion in FDI inflows with expectations for acceleration. Insurance penetration remains 3.7% in India versus 7% globally—significant growth potential.

Expected Outcomes: 3 million job creation by 2030 in insurance sector. Enhanced market reach in rural and semi-urban areas.

Safeguards: Regulatory oversight ensures rural service obligations compliance and prevents market monopolization.

2. GST Rationalization for Insurance

Current 18% GST on insurance premiums restricts affordability. Lowering the rate could significantly boost insurance penetration among low-income groups, with long-term benefits offsetting short-term revenue loss.

3. Technology-Driven Insurance Innovation

Government allocation of Rs 500 crore for AI Centers of Excellence enhances underwriting, fraud detection, and policy personalization.

Implementation Challenges: Urban-rural digital divide, data privacy concerns, and skill shortages need addressing.

4. India Post Payment Bank (IPPB) Expansion

IPPB leverages 2 lakh postmen across 1.36 lakh post offices for financial service delivery.

Impact: Financial Inclusion Index improved from 53.9 (2021) to 64.2 (2024). Enhanced rural access to savings, insurance, and pensions, though last-mile connectivity and digital literacy challenges persist.

5. NaBFID’s Credit Enhancement Facility

NaBFID facilitates infrastructure financing through Partial Credit Enhancement (PCE) for corporate bonds.

6. Grameen Credit Score (GCS) for SHGs

Grameen Credit Score provides data-driven credit assessment for rural borrowers—Self-Help Groups, farmers, and micro-entrepreneurs—reducing informal lender dependence.

Risk Management: Data accuracy, over-indebtedness prevention, and financial literacy programs require ongoing attention.

Challenges and Way Forward

Key Priorities:

• Find regulatory balance between competition and rural coverage obligations

• Develop skill capacity in AI and cybersecurity for financial services

• Establish transparent risk-assessment frameworks for NaBFID

• Combine GST reductions with targeted subsidies for inclusivity

Conclusion

Financial sector reforms form essential foundations for a $10 trillion economy by 2047. By systematically increasing FDI, leveraging technology, and extending financial inclusion, these policies address critical gaps in insurance penetration, rural credit access, and infrastructure financing, fulfilling the vision of ‘Sabka Saath, Sabka Vikas’.

Chapter 4: Enhancing India’s Manufacturing and Trade

Introduction

The Union Budget 2025-26 articulates a comprehensive framework to strengthen India’s manufacturing sector, reduce trade deficits, and achieve self-reliance through the Atmanirbhar Bharat initiative. The budget prioritizes policy reforms, fiscal incentives, and infrastructure development to drive growth in key sectors.

1. National Manufacturing Mission (NMM)

Strategic Goal: Increase manufacturing GDP share from 16-17% to 25% by 2030.

Comparative Context:

• China: 28% of GDP

• South Korea: 25% of GDP

• Current India: 16-17% of GDP

Focus Areas: Ease of doing business, skills development, MSME support, technology access, and product quality.

Sustainability Integration: Promotes clean technologies (solar PV, EVs, batteries) and circular economy practices.

Trade Deficit Target: Aims to reduce the $250 billion trade deficit through increased domestic production of semiconductors and solar panels.

2. Fiscal and Policy Reforms

Customs Duty Exemptions:

• Critical minerals (lithium, cobalt): Support EV battery production

• Shipbuilding inputs: Develop maritime sector

• Smartphone components: Position as global electronics hub

Simplified Tax Structure: Unified cess/surcharge system enhances tax predictability.

3. Production-Linked Incentive (PLI) Scheme Expansion

Sectoral Coverage: 14 key sectors (electronics, automobiles, textiles, pharmaceuticals).

Budget Allocations:

• Electronics/IT: ₹8,885 crore

• Automobiles: ₹2,819 crore (EV components)

Impact: Positioned India as 2nd-largest mobile phone producer globally, driving substantial manufacturing output growth.

4. MSME Support and Empowerment

Contribution: MSMEs account for 35% of manufacturing output, 30% of GVA, and employ 25.18 crore people.

Credit Enhancement:

5. Labor-Intensive Sectors Development

Leather and Footwear: Target 22 lakh jobs with BCD exemptions on crust and wet blue leather.

Textiles:

• Cotton Productivity Mission for high-quality staple varieties

• 57.7% budget increase (₹5,272 crore)

Toys: Focus on reducing China’s 64% share of toy imports through domestic manufacturing hubs.

6. Export Promotion and Digital Infrastructure

Export Promotion Mission: ₹2,250 crore for credit access, non-tariff barrier mitigation, and cross-border factoring.

Bharat TradeNet (BTN): Unified digital platform for streamlined trade documentation and non-tariff barrier reduction.

7. Infrastructure and R&D

R&D Fund: ₹20,000 crore for AI, semiconductors, renewable energy, and Industry 4.0.

SEZ Reforms: New DESH legislation enables faster customs clearances and state partnerships.

8. Sustainable Growth

Emphasis on green manufacturing, EV infrastructure, solar technology, and resource efficiency.

Conclusion

The Union Budget 2025-26 strategically strengthens India’s manufacturing foundation, amplifies exports, and aligns industrial development with sustainability imperatives. India aspires to position itself as a leading global manufacturing hub and $5 trillion economy by 2030.

Chapter 5: Policy Updates

Incentive Scheme for Low-Value BHIM-UPI (P2M) Transactions

Scheme Details:

• Outlay: Rs 1,500 crore (FY 2024-25)

• Transaction Limit: Up to ₹2,000

• Incentive Rate: 0.15% per transaction

• Target Volume: ₹20,000 crore

Disbursement: 80% unconditional; 20% contingent on technical decline <0.75% and system uptime >99.5%.

Promotional Products: UPI 123PAY (USSD-based), UPI Lite (low-data variant) for rural penetration.

Payment Infrastructure:

• MDR for debit cards: 0.90%

• MDR for UPI P2M: 0.30%

• Waived MDR for RuPay Debit Cards and BHIM-UPI (since January 2020)

Revised National Programme for Dairy Development (NPDD)

Period: 2021-2026

Achieved Outcomes:

• Farmers Benefited: 18.74 lakh

• Jobs Created: 30,000

• Milk Procurement Increase: 100.95 lakh liters/day

• Testing Labs Upgraded: 51,777

• Bulk Milk Coolers: 5,123 installed

Expected Results:

• 10,000 new dairy cooperatives

• 3.2 lakh additional jobs

• Enhanced rural livelihoods supporting White Revolution 2.0

Revised Rashtriya Gokul Mission (RGM)

Allocation: Rs 3,400 crore (2021-2026)

Key Enhancements:

• Heifer Rearing Centers: 30 facilities; 15,000 heifers; 35% capital assistance

• Interest Subvention: 3% on HGM IVF heifer loans

• Genetic Preservation: Indigenous bovine breeds through genomic chips and IVF

Performance Metrics:

• Milk production increased 63.55% over decade

• Per capita availability: 307 grams/day (2013-14) to 471 grams/day (2023-24)

• Nationwide AI Programme: Covered 8.39 crore animals; benefitted 5.21 crore farmers

Chapter 6: News Digest

India’s First Indigenous Semiconductor Chip by 2025

Manufacturing hub development in Madhya Pradesh with 85 active electronics companies and two new clusters in Bhopal and Jabalpur. Training 85,000 engineers with 20,000 in Madhya Pradesh.

Electronics exports valued at Rs 5 lakh crore, ranking among top three categories.

AIKosha: IndiaAI Datasets Platform

Secured repository offering 300+ datasets and 80+ AI models with integrated development environment.

Key Datasets: 2011 Census data, satellite imagery, open governance data, health data, meteorological and pollution data.

Jaipur 3R and Circular Economy Declaration (2025-2035)

3R Principles: Reduce, Reuse, Recycle

India’s Initiatives:

• Cities Coalition for Circularity (C-3): Inter-city collaboration on circular practices

• CITIIS 2.0 MoU: Circular projects in urban areas

• Focus: Triple planetary crisis, resource efficiency, local industry employment

Maritime Reforms 2025

One Nation-One Port Process (ONOP): Standardize operations across major ports.

Bharat Global Ports Consortium: Enhance global trade resilience; support “Make in India” exports.

MAITRI Platform: AI and blockchain-based Virtual Trade Corridor.

India Maritime Week 2025: Mumbai, October 27-31; expecting 1,00,000 delegates from 100 countries.

India’s First Semiconductor Fabrication Unit

Location: Dholera, Gujarat
Partner: Tata Electronics (backed by Taiwan’s PSMC)
Investment: Rs 91,000 crore (50% government fiscal support)
Sectors: Automotive, computing, AI, communication semiconductors
Employment: 20,000+ skilled jobs
Significance: Leap toward technological self-reliance and supply chain resilience

Khelo India Para Games 2025

Details: 2nd edition in New Delhi (March 20-27, 2025); 1,230 para-athletes across six disciplines.

Notable Participants: Harvinder Singh (Archery), Dharambir (Club Throw), Praveen Kumar (High Jump)—Paris 2024 Paralympics and Asian Para Games medalists.

Yojana Summary

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