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Policy Support for Economic Growth

Story So Far

Over the past few decades, India’s industrial policy playbook has evolved from reactive protectionism to proactive ambition. But ambition without agility, or strategy without execution, risks turning demographic dividends into disillusionment. The gains are undeniable—but so too is the opportunity cost of underreach.

India is now at an inflection point. With a youthful population, decoupling global supply chains, and an appetite for investment, the opportunity window is uniquely open. But it demands boldness beyond sloganeering.

The next phase of industrialisation must favour:

  • Structural reforms over tactical schemes

  • Ease of compliance over one-time incentives

  • Upgraded skilling systems that mirror industry 4.0 needs

  • Export policies that aim for value-added diversification, not just volume expansion

Timeline

2000 – 2005: EXIM Policy

  • Policy Impact: Institutionalised a five-year export-import policy cycle. Introduced Duty Exemption and Advance License Schemes.

  • Effect: Increased predictability for exporters, simplified procedures.

  • Economic Indicators:

    • GDP per capita: ~$442

    • Nominal GDP: ~$468 billion

    • Exports (goods): ~$44.1 billion

2011: National Manufacturing Policy

  • Policy Impact: Created National Investment and Manufacturing Zones (NIMZs) with an aim to increase manufacturing share to 25% of GDP.

  • Effect: Focus on employment, innovation, and industrial infrastructure.

  • Economic Indicators:

    • GDP per capita: ~$1,450

    • Nominal GDP: ~$1.82 trillion

    • Exports (goods): ~$309 billion

2015: Start-Up India & Digital India

  • Policy Impact: Promoted entrepreneurship, tech innovation, and digital infrastructure.

  • Effect: Enabled a surge in tech-based businesses and service exports.

  • Economic Indicators:

    • GDP per capita: ~$1,590

    • Nominal GDP: ~$2.10 trillion

    • Exports (goods): ~$266 billion

2020: AatmaNirbhar Bharat Abhiyan

  • Policy Impact: Introduced to build self-reliance post-COVID-19. Production Linked Incentives (PLI) Schemes launched in 14 sectors for boosting manufacturing and exports.

  • Effect: Supported domestic supply chains and reduced import dependence.

  • Economic Indicators:

    • GDP per capita: ~$1,916

    • Nominal GDP: ~$2.67 trillion

    • Exports (goods): ~$275 billion

2024: India-Middle East-Europe Economic Corridor (IMEC)

  • Policy Impact: Strategic initiative to connect India to Europe via Middle East for enhanced trade routes.

  • Effect: Expected to improve logistics competitiveness and long-term export growth.

  • Economic Indicators (Estimates):

    • GDP per capita: ~$2,481

    • Nominal GDP: ~$3.60 trillion (est.)

    • Exports (goods & services): ~$825 billion (projected)

1991: New Industrial Policy (LPG Reforms)

  • Policy Impact: Introduced Liberalisation, Privatisation, and Globalisation. Abolished industrial licensing, reduced tariffs, promoted FDI.

  • Effect: Triggered a shift from a closed to an open economy, laying the foundation for export-led growth.

  • Economic Indicators:

    • GDP per capita: ~$304

    • Nominal GDP: ~$275 billion

    • Exports (goods): ~$18 billion

2005: SEZ Act & National Manufacturing Competitiveness Programme

  • Policy Impact: Launched Special Economic Zones (SEZs) and National Manufacturing Competitiveness Programme (NMCP) to enhance MSME competitiveness and export orientation.

  • Effect: Enabled duty-free zones, improved technology upgradation in manufacturing.

  • Economic Indicators:

    • GDP per capita: ~$711

    • Nominal GDP: ~$820 billion

    • Exports (goods): ~$99.6 billion

2014: Make in India Initiative

  • Policy Impact: Focused on 25 priority sectors, simplified regulatory environment, and enhanced FDI.

  • Effect: Improved manufacturing ecosystem, led to new investor confidence.

  • Economic Indicators:

    • GDP per capita: ~$1,560

    • Nominal GDP: ~$2.04 trillion

    • Exports (goods & services): ~$317 billion

2018: Logistics Efficiency Enhancement Programme

  • Policy Impact: Targeted reduction in logistics cost and improvement in multimodal connectivity through Bharatmala and Sagarmala.

  • Effect: Boosted industrial corridor connectivity and export supply chains.

  • Economic Indicators:

    • GDP per capita: ~$1,974

    • Nominal GDP: ~$2.70 trillion

    • Exports (goods): ~$323 billion

2023: Foreign Trade Policy & PM GatiShakti

  • Policy Impact: Transitioned to a remission-based export support regime for exported products. GatiShakti integrated infrastructure planning platform launched.

  • Effect: Streamlined export logistics and improved trade facilitation.

  • Economic Indicators:

    • GDP per capita: ~$2,485

    • Nominal GDP: ~$3.57 trillion

    • Exports (goods): ~$431.6 billion

    • Exports (services): ~$337.5 billion

Timeline

Timeline

1991 – New Industrial Policy (LPG Reforms)

Economic Indicators:

  • GDP per capita: ~$304

  • Nominal GDP: ~$275 billion

  • Exports (goods): ~$18 billion

2000 – EXIM Policy
2000–2005

Economic Indicators:

  • GDP per capita: ~$442

  • Nominal GDP: ~$468 billion

  • Exports (goods): ~$44.1 billion

2005 – SEZ Act & National Manufacturing Competitiveness Programme (NMCP)

Economic Indicators:

  • GDP per capita: ~$711

  • Nominal GDP: ~$820 billion

  • Exports (goods): ~$99.6 billion

2011 – National Manufacturing Policy

Economic Indicators:

  • GDP per capita: ~$1,450

  • Nominal GDP: ~$1.82 trillion

  • Exports (goods): ~$309 billion

2014 – Make in India Initiative

Economic Indicators:

  • GDP per capita: ~$1,560

  • Nominal GDP: ~$2.04 trillion

  • Exports (goods): ~$317 billion (goods & services combined)

2015 – Start-Up India & Digital India

Economic Indicators:

  • GDP per capita: ~$1,590

  • Nominal GDP: ~$2.10 trillion

  • Exports (goods): ~$266 billion

2018 – Logistics Efficiency Enhancement Programme (LEEP)

Economic Indicators:

  • GDP per capita: ~$1,974

  • Nominal GDP: ~$2.70 trillion

  • Exports (goods): ~$323 billion

2020 – AatmaNirbhar Bharat Abhiyan

Economic Indicators:

  • GDP per capita: ~$1,916

  • Nominal GDP: ~$2.67 trillion

  • Exports (goods): ~$275 billion

2023 – Foreign Trade Policy 2023 & PM GatiShakti

Economic Indicators:

  • GDP per capita: ~$2,485

  • Nominal GDP: ~$3.57 trillion

  • Exports (goods): ~$431.6 billion

  • Exports (services): ~$337.5 billion

2024 – India-Middle East-Europe Economic Corridor (IMEC)

Economic Indicators:

  • GDP per capita: ~$2,481

  • Nominal GDP: ~$3.60 trillion (est.)

  • Exports (goods + services): ~$825 billion (projected)

Timeline

Summary Insights

Over three decades, India’s GDP per capita rose from $304 (1991) to ~$2,481 (2024).

Nominal GDP expanded more than 13x, from ~$275 billion to over $3.6 trillion.

Exports grew over 40x, from ~$18 billion to projected $825 billion+ by 2024.

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