Anamika Mishra
[Sub Editor]
The Union Budget 2025 is set to transform India’s economic landscape by driving innovation, ramping up exports, and strengthening global trade. With a series of strategic initiatives, the government is positioning the country to lead in research and development (R&D), foster private sector collaboration, and streamline international trade processes.
A key highlight of the Union Budget 2025 is the allocation of Rs 20,000 crore to boost innovation and research and development. This significant funding is designed to catalyze private sector-led R&D and innovation projects, positioning India as a global technology leader. By encouraging collaboration between industry and government, the initiative aims to accelerate breakthrough innovations and enhance the country’s competitive edge in global trade and technology markets.
To further strengthen its position in international markets, the Union Budget 2025 introduces an Export Promotion Mission. Spearheaded jointly by the Ministries of Commerce, MSME, and Finance, this mission will target sector-specific growth by improving access to export credit, offering cross-border factoring support, and addressing non-tariff barriers. This strategic move is expected to empower MSMEs and boost exports, thereby deepening India’s integration into the global value chain.
In an effort to decentralize economic development and enhance innovation, the government is launching a national framework to promote Global Capability Centres (GCCs) in emerging Tier-II cities. This initiative focuses on increasing the availability of skilled talent, improving infrastructure, and implementing legal reforms. By fostering closer collaboration between industry and state governments, the plan will drive regional growth and further bolster India’s reputation as a hub for research and development and technology innovation.
The budget also emphasizes the need to boost domestic manufacturing to create a seamless integration with global supply chains. Investments in modern infrastructure, advanced technology, and comprehensive talent development are expected to transform India into a key player in international markets. This renewed focus on domestic production not only strengthens the local economy but also positions the country as a reliable partner in global trade.
A transformative feature of Union Budget 2025 is the launch of BharatTradeNet (BTN) – a unified digital public infrastructure for streamlining international trade. Serving as a one-stop platform for trade documentation and financing solutions, BTN will work in tandem with the existing Unified Logistics Interface Platform. This strategic digital initiative is aimed at simplifying trade processes, enhancing operational efficiency, and aligning India’s trade practices with global best practices.
Lastly, Union Budget 2025 marks a pivotal moment for India’s economic future. With bold investments in innovation and R&D, a focused export promotion mission, support for Global Capability Centres, and a boost to domestic manufacturing, the budget lays a solid foundation for sustainable growth. The introduction of BharatTradeNet further reinforces India’s commitment to revolutionizing international trade. Together, these initiatives underscore the government’s dedication to driving global trade, enhancing technological advancements, and empowering the private sector in a rapidly evolving global marketplace.
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Anamika Mishra
[Sub Editor]
The new firm will be a joint venture between international and state-run entities.
In an effort to reduce its dependency on foreign shipping services and take advantage of growing trade revenue, India plans to create a new shipping firm and increase the size of its fleet by at least 1,000 ships over the course of the next ten years. This programme is a component of Prime Minister Narendra Modi's plan
to make India a developed country by 2047.
The new shipping company, which has not yet been given a name, will be a joint venture between the state-owned Shipping Corporation of India, international partners, and state-run businesses in the oil, gas, and fertiliser sectors. By 2047, this strategic partnership hopes to cut India's freight costs to foreign carriers by one third, according to anonymous government sources.
As we increase our exports and imports by 2047, current projections indicate that freight expenses will grow to $400 billion, a government source with firsthand knowledge of the situation told Reuters. Indian businesses spent $85 billion on goods in the 2019–20 fiscal year, of which $75 billion went towards employing foreign boats.
India's slow growth of its shipping fleet in comparison to its rapid trade, especially in energy imports and refined oil product exports, is the reason for the country's considerable reliance on foreign carriers. Approximately 1,500 large boats, including tankers, LNG carriers, cargo ships, and dry bulk carriers, make up India's fleet at the moment.
The oil and shipping ministries of India came up with a plan to bridge this gap by utilising the Shipping Corporation of India's expertise in tanker ownership, purchase, and operations to enable state-run oil corporations to work with the new shipping company. To create a comprehensive plan for this endeavour, a cooperative working group comprising leaders from the government and industry was formed in January.
The newly formed company would have its headquarters at Gujarat's GIFT IFSC, a financial hub created to compete with centres like Singapore by offering tax breaks and streamlined rules. A maritime development fund worth over 300 billion rupees ($3.6 billion) in collaboration with major port authorities will provide seed money to the company. Furthermore, rather than arranging one-way trips or brief charters, state-run companies are urged to enter into 15-year charter agreements with the new company in order to provide low-cost, long-term loans for shipbuilding. By using this strategy, state-run businesses can also invest in the newly formed shipping and leasing company.
With the help of this strategic strategy, India hopes to become more independent in its maritime trade and drastically cut the amount of goods it sends overseas.
The new firm will be a joint venture between international and state-run entities.
In an effort to reduce its dependency on foreign shipping services and take advantage of growing trade revenue, India plans to create a new shipping firm and increase the size of its fleet by at least 1,000 ships over the course of the next ten years. This programme is a component of Prime Minister Narendra Modi's plan to make India a developed country by 2047.
The new shipping company, which has not yet been given a name, will be a joint venture between the state-owned Shipping Corporation of India, international partners, and state-run businesses in the oil, gas, and fertiliser sectors. By 2047, this strategic partnership hopes to cut India's freight costs to foreign carriers by one third, according to anonymous government sources.
As we increase our exports and imports by 2047, current projections indicate that freight expenses will grow to $400 billion, a government source with firsthand knowledge of the situation told Reuters. Indian businesses spent $85 billion on goods in the 2019–20 fiscal year, of which $75 billion went towards employing foreign boats.
India's slow growth of its shipping fleet in comparison to its rapid trade, especially in energy imports and refined oil product exports, is the reason for the country's considerable reliance on foreign carriers. Approximately 1,500 large boats, including tankers, LNG carriers, cargo ships, and dry bulk carriers, make up India's fleet at the moment.
The oil and shipping ministries of India came up with a plan to bridge this gap by utilising the Shipping Corporation of India's expertise in tanker ownership, purchase, and operations to enable state-run oil corporations to work with the new shipping company. To create a comprehensive plan for this endeavour, a cooperative working group comprising leaders from the government and industry was formed in January.
The newly formed company would have its headquarters at Gujarat's GIFT IFSC, a financial hub created to compete with centres like Singapore by offering tax breaks and streamlined rules. A maritime development fund worth over 300 billion rupees ($3.6 billion) in collaboration with major port authorities will provide seed money to the company. Furthermore, rather than arranging one-way trips or brief charters, state-run companies are urged to enter into 15-year charter agreements with the new company in order to provide low-cost, long-term loans for shipbuilding. By using this strategy, state-run businesses can also invest in the newly formed shipping and leasing company.
With the help of this strategic strategy, India hopes to become more independent in its maritime trade and drastically cut the amount of goods it sends overseas.
Explore the latest edition of Journal of Supply Chain Magazine and be part of the JOSC Daily News Bulletin.
Discover all our upcoming events and secure your tickets today.
Journal of Supply Chain is a Hansi Bakis Media brand.
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