In response to evolving global economic challenges, India’s Ministry of Commerce & Industry has rolled out a suite of initiatives aimed at bolstering international trade, supporting MSMEs, and fostering innovation within the country’s vibrant startup ecosystem. This multi-pronged approach includes new trade agreements, digital platforms, financial schemes, and deep-tech funding mechanisms.
1. Trade Deals to Unlock Growth
- India’s Free Trade Agreement with the UK is expected to be signed on July 24, 2025, during Prime Minister Modi’s London visit, paving the way for tariff-free export of Indian EVs, textiles, and agricultural products to the UK market.
- The India-EFTA (European Free Trade Association) trade pact will take effect from October 1, potentially attracting $100 billion in investments and generating 1 million jobs via expanded exports and bilateral cooperation.
2. Platforms & Policy Tools for Exporters and Small Businesses
- The launch of Trade Connect, branded as “ChatGPT for traders,” provides a single-window trade platform connecting MSMEs with key government agencies, export councils, embassies, and support resources. Over 600 officials from export promo councils and diplomats are onboarded.
- The Trade Infrastructure for Export Scheme (TIES), RoDTEP and RoSCTL schemes remain vital for improving export competitiveness through duty remissions and interest subvention.
3. Deep Tech & Funding Boost for Startups
- The ministry plans to introduce additional funding following the Startup India Seed Fund Scheme’s expected sunset in 2025. Proposed expansions include new support mechanisms targeting deep-tech companies focused on AI, semiconductors, robotics, and clean energy technologies.
- Schemes such as Startup India Seed Fund Scheme (SISFS), Fund of Funds for Startups (FFS), Credit Guarantee Scheme for Startups (CGSS), and platforms like BHASKAR and MAARG continue to empower startups with financing, mentorship, and market access.
4. Export Growth & Digital Commerce Gains
- Government e-Marketplace (GeM) procurement crossed ₹4 lakh crore (April–January), keeping momentum high in public sourcing and enabling over 21,800 DPIIT‑recognized startups to generate ₹18,500 crore in sales.
- Open Network for Digital Commerce (ONDC) launched tools like the DigiReady certification for SMEs and an e-commerce hackathon supporting innovations via Google Cloud credits and seed equity grants.
5. Infrastructure & Logistics: Supporting Trade Efficiency
- Sagarmala Programme and Multi-Modal Logistics Parks (MMLPs) are aimed at slashing logistics costs and improving export competitiveness through port-linked rail/road corridors.
- The introduction of the National Single Window System (NSWS) further streamlines business approvals across central and state systems.
Expert Takeaways
- Trade diversification via new FTAs—particularly with the UK and EFTA—signals India’s strategic intent to expand export markets beyond traditional spheres.
- E-platforms like Trade Connect and ONDC democratize access to global markets, especially for MSMEs and startups.
- Financing schemes and mentoring platforms aim to nurture innovations in deep tech, enhancing startup competitiveness.
- Logistics infrastructure reforms under Sagarmala and MMLP reduce freight bottlenecks, essential for “Make in India” to thrive globally.
- Continued challenges remain—from U.S. tariff threats over agriculture and gems to dependency on Chinese inputs—highlighting the need for coordinated policy and innovation.
Where India Goes Next
- Finalizing FTAs with the UK, EFTA, and strategic dialogues with Chile, Peru, and the U.S. on critical minerals and market access.
- The upcoming 2025–26 Budget is expected to include expanded seed-fund allocations and a new deep tech push, reinforcing the Commerce Ministry’s startup strategy.
✅ Final Word
India’s Commerce Ministry is steering an integrated strategy—aligning trade deals, digital commerce infrastructure, logistics reform, and startup financing—to secure both export-led growth and innovation-led transformation. As FTAs and tech-first startups take center stage, the ministry aims to position India as a global trade and innovation powerhouse.
