India targets $1.3 trillion goods exports by 2035 with deregulation-led manufacturing push

India aims to triple annual goods exports to $1.3 trillion by 2035 as it prepares a new manufacturing strategy centered on deregulation and structural reforms, rather than relying primarily on large fiscal subsidy programmes, government sources said. 

The plan — the National Manufacturing Mission (NMM) — is being positioned as a fresh attempt by Prime Minister Narendra Modi’s government to lift India’s manufacturing competitiveness and increase its share in economic output.

National Manufacturing Mission: 15 focus sectors

The mission will target 15 key manufacturing sectors, including advanced areas such as semiconductors and specialty metals, along with labour-intensive industries like leather, Reuters reported, citing sources. 

The push marks an evolution from earlier initiatives like the 2014 Make in India programme and subsequent incentive plans, which have had mixed outcomes in shifting India into a global manufacturing hub. 

Shift from subsidies to reform-driven execution

Unlike previous rounds that leaned heavily on fiscal incentives, the new plan is expected to combine modest funding with major compliance reforms.

According to Reuters, the government is planning around:

• ~$1 billion for infrastructure to build 30 specialised manufacturing hubs
• $218 million in grants for “sunrise” sectors such as chipmaking and energy storage 

Officials described the strategy as focused on reducing long-standing frictions that slow manufacturing investment, including approval delays and overlapping compliance rules.

New governance model to coordinate centre-state clearances

Sources told Reuters the NMM will include a new high-level government panel chaired by a Union Minister and comprising senior bureaucrats.

The panel is expected to work with state governments to ensure “plug-and-play” industrial facilities — including smoother processes for land access, environmental clearances and power connectivity — key requirements for large manufacturing projects.

The government also plans to pursue greater coordination across states on labour and compliance frameworks, and improve quality checks and tariff alignment, Reuters reported. 

Budget 2026 announcement expected on February 1

Details of the regulatory framework and the final list of targeted sectors are expected to be presented as part of India’s Union Budget on February 1, 2026, according to the sources. 

Why This Matters

India’s export and manufacturing strategy is entering a new phase: policy execution and compliance reform are being positioned as the primary levers of competitiveness.

If implemented effectively, the NMM could help India attract global supply chain relocation in electronics, cleantech and industrial manufacturing — areas where speed of approvals, cost of compliance, and infrastructure readiness matter as much as fiscal incentives.

Summary

• India is targeting $1.3 trillion in annual goods exports by 2035, sources said. 
• The National Manufacturing Mission will target 15 manufacturing sectors, including semiconductors and leather. 
• The plan emphasizes deregulation and structural reforms, not large subsidy programmes. 
• The government is planning ~$1 billion for 30 manufacturing hubs and $218 million for sunrise sectors like chipmaking and energy storage. 
• The final roadmap is expected to be detailed in Budget 2026 on Feb 1. 

FAQs

Q1: What is India’s export target under the new plan?

India is aiming to raise annual goods exports to $1.3 trillion by 2035, Reuters reported citing government sources. 

Q2: What is the National Manufacturing Mission (NMM)?

The NMM is a manufacturing strategy focused on reform-led execution and deregulation, designed to lift competitiveness across targeted sectors. 

Q3: Which sectors are expected to be prioritised?

Reuters reported that the mission targets 15 sectors, including semiconductors, metals and labour-intensive industries such as leather. 

Q4: How much funding is planned?

The plan includes around $1 billion for infrastructure across 30 manufacturing hubs, plus $218 million in grants for chipmaking and energy storage. 

Q5: When will the plan be officially announced?

Sources said key details are expected in India’s Union Budget on February 1, 2026.