India’s economic growth depends heavily on trade, industries, exports, innovation, and investment. The Commerce Ministry highlights many important reforms introduced by the Ministry of Commerce and Industry to improve the country’s business environment. These initiatives focused on making India an attractive destination for investment, increasing exports, encouraging innovation, supporting industries, and creating employment opportunities.

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Many of these reforms have continued to influence India’s economy even after 2019. Several policies have been expanded or improved between 2020 and 2025, helping India become one of the fastest-growing major economies in the world.

What is the Ministry of Commerce and Industry?

The Ministry of Commerce and Industry is responsible for:

Promoting domestic and international trade
Increasing exports
Attracting foreign investment
Supporting industries and startups
Protecting intellectual property rights
Improving ease of doing business
Developing industrial infrastructure
Encouraging innovation and entrepreneurship

Its policies directly affect businesses, farmers, manufacturers, exporters, startups, and consumers.

Ease of Doing Business in India

One of the biggest achievements in 2019 was India’s remarkable improvement in the World Bank’s Ease of Doing Business rankings.

India moved to 63rd position among 190 countries, improving from 77th rank the previous year. It was also recognized as one of the world’s top-performing economies in improving the business environment.

The improvement came mainly because of reforms in:

1. Starting a Business

The government simplified company registration by combining several application forms into one online process.

Benefits included:

Faster company registration
Less paperwork
Reduced processing time
Better digital services

2. Construction Permits

Obtaining building approvals became easier and less expensive.

This encouraged industries to build factories, warehouses, and commercial buildings more quickly.

3. Trading Across Borders

India improved customs procedures by introducing electronic documentation and better port infrastructure.

This reduced:

Export delays
Import costs
Paperwork
Time required for customs clearance

4. Insolvency Resolution

The Insolvency and Bankruptcy Code (IBC) significantly improved recovery rates.

Earlier, resolving insolvency cases took more than four years. By 2019, the average time had reduced considerably, making India more attractive to investors.

Although the World Bank later discontinued the Ease of Doing Business Report, many of these reforms continue under India’s business reform initiatives.

Global Innovation Index

Innovation is an important factor for economic development.

India improved its ranking from 81st in 2015 to 52nd in the Global Innovation Index 2019.

India also remained the most innovative economy in Central and Southern Asia.

The country’s strengths included:

Information Technology
Engineering graduates
Scientific research
Creative industries
ICT service exports
Startup ecosystem

Cities such as Bengaluru, Mumbai, and New Delhi were recognized among the world’s leading science and technology clusters.

Between 2020 and 2025, India further strengthened its startup ecosystem through initiatives like Startup India, Digital India, semiconductor manufacturing support, and AI innovation programs.

Export Promotion Measures

Exports play a major role in earning foreign exchange and creating employment.

The Ministry introduced several schemes to support exporters.

NIRVIK Scheme

The NIRVIK Scheme was introduced by the Export Credit Guarantee Corporation (ECGC).

Its objectives were:

Increase insurance coverage for exporters
Reduce lending risk for banks
Improve export financing
Support small exporters

This encouraged banks to provide easier loans to export businesses.

Export Credit Guarantee Corporation (ECGC)

ECGC is a government-owned company.

Its main functions include:

Export credit insurance
Risk protection
Export finance support
Encouraging international trade

It protects exporters against payment risks from foreign buyers.

Transport and Marketing Assistance (TMA)

Transportation costs are often high for agricultural exports.

The TMA Scheme provides financial assistance for transporting agricultural products to selected international markets.

Benefits include:

Lower export cost
Better market access
Higher income for farmers
Increased agricultural exports

Origin Management System

India signed several Free Trade Agreements (FTAs) with different countries.

The Origin Management System simplified the issuance of Certificates of Origin.

Major advantages include:

Paperless processing
Faster approvals
Real-time tracking
Greater transparency

This reduced transaction costs for exporters.

RoDTEP Scheme

The Remission of Duties and Taxes on Export Products (RoDTEP) Scheme replaced the earlier Merchandise Exports from India Scheme (MEIS).

Its objectives are:

Refund hidden taxes
Improve export competitiveness
Make exports WTO compliant
Support MSMEs

Today, RoDTEP continues to be one of India’s major export promotion schemes.

National Logistics Policy

Efficient logistics reduce transportation costs and improve exports.

The National Logistics Policy aims to:

Improve transport infrastructure
Reduce logistics costs
Increase supply chain efficiency
Promote multimodal transport
Make India a global logistics hub

From 2022 onward, initiatives like PM Gati Shakti have further strengthened logistics planning across the country.

Multi-Modal Transportation

Goods often travel through:

Roads
Railways
Waterways
Air transport

Using multiple transport modes helps reduce costs and improve delivery speed.

The Multi-Modal Transportation of Goods Bill aims to improve accountability and simplify transportation across different modes.

Skill Development for Logistics

The government introduced Qualification Packs (QPs) for logistics workers.

These provide standard skill training in areas like:

Warehousing
Transportation
Supply chain management
Cargo handling

This helps improve workforce quality.

Agriculture Export Policy

Agriculture exports provide better income opportunities for farmers.

The Agriculture Export Policy aims to:

Increase agricultural exports
Connect Farmer Producer Organizations (FPOs) with exporters
Improve product quality
Expand overseas markets

The Agricultural and Processed Food Products Export Development Authority (APEDA) also launched digital platforms to help farmers register and participate in export markets.

APEDA

APEDA promotes exports of agricultural and processed food products.

Its major functions include:

Quality certification
Export promotion
Farmer registration
Market development
Capacity building

The Farmer Connect mobile application also helps farmers access export-related services.

Steel Import Monitoring System (SIMS)

India imports large quantities of steel.

The Steel Import Monitoring System helps the government monitor imports in advance.

It provides:

Better policy planning
Market information
Protection for domestic industries

Importers register online before importing specified steel products.

Trade Facilitation Measures

The Ministry introduced several initiatives to simplify international trade.

India-Mauritius CECPA

India signed the Comprehensive Economic Cooperation and Partnership Agreement with Mauritius.

The agreement promotes:

Bilateral trade
Investment
Economic cooperation

Border Haats

Border Haats are local markets located near international borders.

These markets:

Promote local trade
Improve livelihoods
Strengthen relations with neighboring countries
Help border communities

India expanded Border Haats along the Bangladesh border.

Special Economic Zones (SEZs)

Special Economic Zones encourage exports by offering various business incentives.

The SEZ Amendment Act allowed trusts and other entities to establish units in SEZs.

Additional facilities such as:

Cafeterias
Crèches
Gymnasiums

were also permitted for employees working inside SEZs.

Foreign Direct Investment (FDI) Reforms

The government introduced several FDI reforms.

Important changes included:

100% FDI in coal mining
100% FDI in contract manufacturing
Easier rules for single-brand retail
More flexibility for online retail

These reforms increased investor confidence and promoted manufacturing.

Between 2020 and 2025, India continued liberalizing FDI rules in various sectors.

National Institute of Design Expansion

The government granted Institution of National Importance status to four new National Institutes of Design located in:

This strengthened India’s design education system.

National Traders’ Welfare Board

Small traders form the backbone of India’s economy.

The National Traders’ Welfare Board was established to recommend:

Insurance benefits
Pension schemes
Access to finance
Welfare measures

The Board works to improve the overall business environment for traders.

India’s Position on RCEP

India chose not to join the Regional Comprehensive Economic Partnership (RCEP).

The government believed certain concerns remained unresolved.

Major concerns included:

Protection of farmers
Dairy sector
Small manufacturers
Trade imbalance

Instead, India continued negotiating trade agreements that better protected domestic interests.

Developments After 2019 (2020-2025)

Several important developments took place after the 2019 review.

These include:

Launch of PM Gati Shakti for integrated infrastructure planning.
National Logistics Policy introduced in 2022.
Production Linked Incentive (PLI) Scheme boosted manufacturing across sectors like electronics, pharmaceuticals, telecom, and automobiles.
India signed new trade agreements with countries including the UAE and Australia.
Digital trade systems became more efficient through paperless customs and online export services.
India emerged as one of the world’s fastest-growing startup ecosystems.
Semiconductor manufacturing received major policy support.
Foreign Direct Investment continued to remain strong in several sectors.
Export promotion initiatives increasingly focused on MSMEs and high-value manufacturing.
India strengthened its position in global supply chains through the “Make in India” and “Atmanirbhar Bharat” initiatives.

Challenges Ahead

Despite many achievements, several challenges remain:

Reducing logistics costs further
Increasing manufacturing exports
Supporting MSMEs
Expanding global market access
Improving infrastructure
Simplifying trade regulations
Increasing innovation and research investment

Addressing these challenges will help India become a leading global manufacturing and trading nation.

Conclusion

The Commerce Ministry marked an important phase in India’s economic reforms. Improvements in ease of doing business, export promotion, innovation, logistics, foreign investment, and industrial development laid a strong foundation for future growth.

The reforms introduced during 2019 have continued to evolve between 2020 and 2025. Policies such as the National Logistics Policy, Production Linked Incentive Scheme, digital trade systems, and new free trade agreements have strengthened India’s position in the global economy.

As India moves toward becoming a developed nation, the Ministry of Commerce and Industry will continue to play a vital role in promoting investment, supporting businesses, creating jobs, and expanding India’s global trade presence.

FAQs

1. What is the main role of the Ministry of Commerce and Industry?

The Ministry of Commerce and Industry is responsible for promoting trade, increasing exports, attracting investments, supporting industries and startups, improving the ease of doing business, and creating policies that strengthen India’s economic growth.

2. What was India’s Ease of Doing Business ranking in 2020?

India ranked 63rd among 190 countries in the World Bank’s Ease of Doing Business Report 2020, improving by 14 positions from the previous year.

3. What is the Global Innovation Index (GII)?

The Global Innovation Index measures the innovation performance of countries based on factors like research, technology, education, and business development.

4. What is the NIRVIK Scheme?

The NIRVIK Scheme provides higher export credit insurance coverage to exporters, helping banks lend more confidently and reducing financial risks.

5. What is the RoDTEP Scheme?

RoDTEP (Remission of Duties and Taxes on Export Products) refunds hidden taxes and duties on exported goods to improve India’s export competitiveness.

6. What is the National Logistics Policy?

The National Logistics Policy aims to reduce logistics costs, improve supply chains, and make India a global logistics hub.

7. What is APEDA?

APEDA (Agricultural and Processed Food Products Export Development Authority) promotes the export of agricultural and processed food products from India.

8. Why did India not join RCEP?

India stayed out of the Regional Comprehensive Economic Partnership (RCEP) to protect the interests of farmers, small manufacturers, and the domestic dairy sector.

9. What is a Special Economic Zone (SEZ)?

A Special Economic Zone is a designated area where businesses receive tax and policy benefits to promote exports, investment, and employment.

10. How has the Ministry of Commerce supported India’s economy after 2019?

The Ministry introduced initiatives like the National Logistics Policy, Production Linked Incentive (PLI) Scheme, new Free Trade Agreements, digital trade reforms, and measures to improve manufacturing and exports.