Indian Exports Face Headwinds: States Highlight Infrastructure and Testing Deficiencies
States report critical infrastructure and testing gaps hindering India's export growth and global competitiveness.
Photo by Andy Li
India's export ambitions are facing significant hurdles, with states flagging critical gaps in infrastructure and testing facilities during a Board of Trade meeting. Exporters are struggling with issues like inadequate testing labs, lack of accredited certification bodies, and poor logistics, leading to delays and rejection of goods. This directly impacts India's ability to meet global quality standards and compete internationally.
The Commerce Ministry acknowledges these challenges, emphasizing the need for a robust ecosystem to boost exports, which are vital for economic growth and job creation. This situation highlights the urgent need for coordinated efforts between central and state governments to enhance trade infrastructure.
Key Facts
States flagged facility and testing gaps
Exports are 15-20% more expensive due to these gaps
Board of Trade meeting held
UPSC Exam Angles
Economic implications of export challenges (GDP, employment, BoP)
Role of government bodies in trade promotion (Board of Trade, Commerce Ministry)
Infrastructure development and logistics policy (National Logistics Policy, PM Gati Shakti)
Quality control and standards (BIS, QCI, NABL, WTO TBT/SPS agreements)
Centre-State relations in economic development and trade facilitation
Visual Insights
India's Export Hubs & States Flagging Infrastructure Gaps (Jan 2026)
This map highlights key Indian states and major port/logistics hubs that are crucial for India's exports and are likely to be the ones flagging critical infrastructure and testing deficiencies during Board of Trade meetings. These regions are vital for achieving national export targets.
Loading interactive map...
India's Export Ambition & Logistics Performance (as of Jan 2026)
A snapshot of India's key export targets and current logistics performance indicators, providing context to the challenges highlighted by states.
- Target Exports by 2030 (Goods + Services)
- $2 Trillion
- Projected Exports FY26 (Goods + Services)
- ~ $880 Billion+7% (YoY Est.)
- Logistics Cost as % of GDP (FY25-26 Est.)
- ~ 13.5%Stable
- India's LPI Rank (World Bank Logistics Performance Index)
- 38th (out of 139)+10 ranks (from 2018)
Ambitious target set by Foreign Trade Policy 2023, requiring significant infrastructure and quality upgrades.
Reflects ongoing growth but highlights the gap to the 2030 target, emphasizing the urgency of addressing bottlenecks.
High logistics costs reduce competitiveness. National Logistics Policy 2022 aims to bring this down to single digits.
Improvement reflects efforts in logistics, but further gains are needed, especially in quality and timeliness.
More Information
Background
Latest Developments
Practice Questions (MCQs)
1. With reference to the Board of Trade in India, consider the following statements: 1. It is an advisory body to the Ministry of Commerce and Industry on matters related to foreign trade. 2. It is chaired by the Union Minister for Commerce and Industry. 3. Representatives from state governments are invited to participate in its meetings. 4. Its primary focus is on promoting domestic trade and reducing import dependency. Which of the statements given above is/are correct?
- A.1, 2 and 3 only
- B.2 and 4 only
- C.1, 3 and 4 only
- D.1, 2, 3 and 4
Show Answer
Answer: A
Statement 1 is correct: The Board of Trade is indeed an advisory body. Statement 2 is correct: It is chaired by the Union Minister for Commerce and Industry. Statement 3 is correct: State government representatives are crucial members, especially as states highlight issues like infrastructure and testing. Statement 4 is incorrect: While domestic trade is important, the Board of Trade's primary focus is on foreign trade, export promotion, and addressing challenges faced by exporters, as highlighted in the news.
2. In the context of India's export competitiveness and global trade standards, consider the following statements regarding international agreements: 1. The WTO Agreement on Technical Barriers to Trade (TBT) aims to ensure that technical regulations and standards do not create unnecessary obstacles to international trade. 2. The WTO Agreement on the Application of Sanitary and Phytosanitary (SPS) Measures allows countries to set their own food safety and animal and plant health standards, provided they are based on scientific principles. 3. India is a signatory to both TBT and SPS agreements, which mandate the establishment of national accreditation bodies for testing and certification. Which of the statements given above is/are correct?
- A.1 and 2 only
- B.2 and 3 only
- C.1 and 3 only
- D.1, 2 and 3
Show Answer
Answer: D
Statement 1 is correct: The TBT Agreement aims to prevent technical regulations and standards from becoming protectionist barriers. Statement 2 is correct: The SPS Agreement allows countries to protect human, animal, or plant life or health, but measures must be scientifically justified and not arbitrary. Statement 3 is correct: As a WTO member and signatory to these agreements, India is obligated to adhere to their principles, which implicitly requires robust national systems for testing, certification, and accreditation (like NABL under QCI) to ensure compliance and facilitate trade. The news highlights deficiencies in these very areas.
3. Which of the following initiatives are aimed at improving India's logistics infrastructure and reducing logistics costs, as relevant to boosting exports? 1. National Logistics Policy (NLP) 2. PM Gati Shakti National Master Plan 3. Sagarmala Programme 4. Dedicated Freight Corridors (DFCs) Select the correct answer using the code given below:
- A.1, 2 and 3 only
- B.2, 3 and 4 only
- C.1, 3 and 4 only
- D.1, 2, 3 and 4
Show Answer
Answer: D
All four initiatives are directly aimed at improving India's logistics infrastructure and efficiency, which is critical for export competitiveness. 1. National Logistics Policy (NLP): Aims to reduce logistics costs, improve efficiency, and integrate various modes of transport. 2. PM Gati Shakti National Master Plan: A digital platform for integrated planning and coordinated implementation of infrastructure connectivity projects across various ministries. 3. Sagarmala Programme: Focuses on port-led development, enhancing port capacity, and improving connectivity to ports. 4. Dedicated Freight Corridors (DFCs): Designed to provide efficient and reliable freight transportation, reducing transit times and costs for goods, including those for export. The news highlights 'poor logistics' as a major hurdle, making these government initiatives highly relevant.
Source Articles
Exports hurt: States flag facility and testing gaps at Board of Trade meeting | Business News - The Indian Express
International News: Latest News Today, International Headlines and Top Stories from India and Around the Globe | The Indian Express
India hits back after Yunus Northeast remark, halts transshipment facility for Dhaka | Business News - The Indian Express
India terminates trans-shipment facility for Bangladesh to export goods to third countries | India News - The Indian Express
India ends trans-shipment facility for Bangladesh exports as Dhaka warms to China; Nepal, Bhutan exempted