India’s Districts as Export Hubs initiative is expanding a district-led export model that connects local products, MSMEs and services with international markets, with more than 770 districts covered as of January 2026.

 India is pushing to make districts the building blocks of its next phase of export growth through the Districts as Export Hubs (DEH) initiative, a framework designed to identify products and services with global potential and connect local producers with international markets.

The initiative is built around the idea that India's export growth should extend beyond established industrial centres and port cities. By focusing on district-level strengths, the government aims to create more opportunities for MSMEs, local businesses and producers, while supporting employment and broader regional economic development.

The approach builds on the One District One Product (ODOP) concept but goes beyond product identification and promotion. Under DEH, districts are treated not merely as production units but as units of export planning, with local authorities, state governments, industry and central institutions working together.

India’s export growth creates room for district-led expansion

India’s combined exports of goods and services reached $825.25 billion in 2024-25, according to the government document, and are estimated to rise to $863.11 billion in 2025-26. The government says the next challenge is to sustain this momentum through a more inclusive approach to export development.

For decades, export activity was concentrated in established industrial clusters and port cities. The DEH framework seeks to bring products from smaller cities, rural districts and remote regions into the export ecosystem.

Examples cited by the government include Bastar iron craft, Jalgaon bananas and Meghalaya oranges, highlighting the range of agricultural, handicraft and other products that could serve international markets.

More than 770 districts covered

The DEH initiative had expanded to cover more than 770 districts across India by January 2026, according to the government.

The framework is not structured as a standalone funding scheme. Instead, it works as a coordination mechanism, bringing together resources available under existing central and state government programmes to address district-specific export challenges.

At the institutional level, the Department of Commerce provides overall policy direction, while the Directorate General of Foreign Trade (DGFT) handles implementation, stakeholder coordination and monitoring.

State Export Promotion Committees guide implementation at the state level, while District Export Promotion Committees (DEPCs) identify export opportunities, address local bottlenecks and coordinate with exporters, industry and other stakeholders.

590 district export plans drafted

One of the key components of the initiative is the preparation of District Export Action Plans (DEAPs).

These plans map products and services with export potential, assess infrastructure and logistics, identify barriers to international trade and recommend measures to improve competitiveness and market access.

By March 2026, draft DEAPs had been prepared for 590 districts, while 249 had been formally adopted by the respective District Export Promotion Committees.

From local products to global standards

Identifying a product is only the first step in becoming an exporter. The DEH framework also focuses on quality standards, testing facilities, packaging, branding and certification so that local products can meet international requirements.

The government has identified several categories with export potential, including GI-tagged products, agricultural clusters, toy clusters and engineering goods.

Examples include ceramics and tiles from Sabarkantha, minerals and agro-processing products from Aravalli, Jalgaon bananas and Bharit brinjal from Maharashtra, oranges from Agar Malwa and Bastar iron craft, rice, jowar and maize from Chhattisgarh.

Digital platforms widen access for MSMEs

The initiative also seeks to use digital commerce to help smaller businesses reach overseas buyers.

The government says DEH partnerships with platforms such as Amazon, Shiprocket and DHL can provide MSMEs with more affordable courier and shipping options. Dak Ghar Niryat Kendras further support small exporters with documentation, packaging and lower-cost postal export facilities.

Capacity-building programmes conducted by DGFT regional authorities and district administrations cover areas such as logistics planning, export procedures, packaging and regulatory compliance.

The programmes involve ecosystem partners including ECGC, EPCH, FIEO, the Ministry of MSME, India Post and EXIM Bank.

EXIM Bank partnership targets six districts

The government has also partnered with EXIM Bank to strengthen export ecosystems in selected districts through its Grassroots Initiatives for Development (GRID) programme.

Six districts—Anantapur, Raipur, Solan, Tiruppur, Kanpur and Kolhapur—have been selected for support under the initiative. The programme aims to identify district-specific constraints, potential beneficiaries and interventions that can improve export competitiveness.

Focus shifts to measurable export outcomes

From June 1, 2026, the government adopted a more focused and phased approach to implementing the DEH initiative.

The first phase involves districts across 27 states and Union Territories, supported by 24 DGFT regional authorities and 11 partner agencies. The emphasis is on measurable outcomes, including registering new exporters, coordinating existing government schemes and increasing export value through GI products and MSME clusters.

The broader objective is to turn district-level production strengths into sustained export opportunities.

As India moves towards its stated $1 trillion export target, the government is positioning stronger coordination among the Centre, states and districts as an important part of the strategy. The intended outcome is not only higher exports but also greater trade, investment and employment opportunities across local economies.

India and New Zealand on Monday signed a bilateral free trade agreement (FTA), marking a major step in efforts to deepen economic ties and expand two-way trade and investment. The India-New Zealand FTA was signed in the presence of Union Commerce and Industry Minister Piyush Goyal and New Zealand Trade and Investment Minister Todd McClay, according to officials.

The agreement gives Indian exporters tariff-free access to the New Zealand market across all tariff lines, covering 100 per cent of India’s exports to the country. Officials said the deal is expected to strengthen trade in labour-intensive sectors and improve India’s export competitiveness in a key overseas market.

Duty-Free Market Access

Under the pact, Indian goods will now enter New Zealand without import duties across all product categories. This is expected to benefit sectors such as textiles, garments, leather, footwear, gems and jewellery, engineering goods and processed food.

Officials said the removal of tariffs would help Indian products compete more effectively with goods from other countries in the New Zealand market. Earlier, New Zealand imposed tariffs of up to 10 per cent on several Indian products, including ceramics, carpets, motor vehicles and auto components.

The agreement is expected to support micro, small and medium enterprises (MSMEs), which form a large part of India’s export base, and generate employment in labour-driven sectors.

India Protects Sensitive Sectors

India has offered tariff concessions on 70.03 per cent of tariff lines, which account for 95 per cent of bilateral trade by value. At the same time, 29.97 per cent of tariff lines have been kept outside the agreement to protect sensitive domestic sectors.

These excluded categories include dairy products such as milk, cream and cheese, several animal products, major farm items including onion, gram, peas, maize and almonds, sugar, artificial honey, oils and fats, arms and ammunition, selected gems and jewellery, and products linked to copper and aluminium.

According to officials, this calibrated approach seeks to balance trade liberalisation with domestic industry protection, particularly in politically and economically sensitive segments.

Tariff Relief For Imports

India will eliminate tariffs on nearly 30 per cent of New Zealand’s tariff lines, including products such as wood, wool, sheep meat and raw hides. Duties on another 35.60 per cent of tariff lines will be phased out over three, five, seven and 10 years.

These include petroleum oils, malt extract, vegetable oils and selected machinery. New Zealand products set to receive tariff concessions also include wine, pharmaceuticals, polymers, aluminium, and iron and steel goods.

Some products, including manuka honey, apples, kiwi fruit and albumin, will be covered under tariff rate quotas, allowing limited imports at lower duty rates.

Investment Clause Added

A key feature of the India-New Zealand FTA is a commitment to facilitate up to $20 billion in investment into India. Officials said the agreement also includes a rebalancing clause to maintain equilibrium if investment targets are not met.

The provision is seen as a safeguard aimed at ensuring that trade concessions remain aligned with investment outcomes. It also reflects India’s growing preference for linking market access with measurable capital commitments.

Trade Ties Expand

The agreement comes as both countries seek to expand a relatively modest trade relationship. In 2024, total bilateral trade in goods and services between India and New Zealand stood at $2.4 billion.

Trade officials have for years flagged untapped potential in sectors such as food processing, advanced manufacturing, clean energy and services. The latest move is expected to widen market access and create new channels for commercial engagement.

As per reports, both sides also see the agreement as part of a broader strategy to diversify trade partnerships amid shifting global supply chains and rising protectionism.

What Comes Next

The India-New Zealand FTA now moves to the implementation stage, where tariff schedules, customs procedures and compliance mechanisms will determine the pace of gains. Businesses in both countries are expected to closely track the rollout of sector-specific concessions.

For India, the agreement strengthens export access while shielding politically sensitive sectors. For New Zealand, it opens a large and growing market with phased entry across key product categories.