How industry-government collaboration can unlock India’s 0 billion agri-export potential

How industry-government collaboration can unlock India’s $100 billion agri-export potential

Exports from agriculture and allied sectors in India have shown a significant increase from around $41 billion in FY 2020-21 to around $51-52 billion in 2024-25 (preliminary estimates), which is quite resilient. The aim is to reach a target of $100 billion in food, agricultural and maritime exports in the coming years.

The Union government and industry ministers have indicated that a combined target of $100 billion for food and beverage, agriculture and maritime exports is achievable over a multi-year horizon, implying a sustained compound growth rate of 14 to 15 percent in these sectors.

To achieve this, we need to go beyond short-term fiscal stimulus and towards systemic cooperation by solving supply-side constraints, increasing value added and achieving reliable market access.

Why cooperation between industry and government is necessary

Given the following features of Indian agricultural exports, long-term collaboration between policy and industry associations is essential:

1. Gap in infrastructure and supply chains: Demand for cold chains, quality packaging and wholesale markets for perishables. India faces a measurable shortage of modern cold storage, with estimates pointing to high unmet demand for storage.

2. High post-harvest loss: Post-harvest losses and quality rejections reduce exportable quality and increase the cost of doing business for the buyer who demands quality and sanitary standards.

3. Multiple institutional frameworks: Multiple agencies (APEDA, government agencies, customs, port authorities) and policies. Yes, APEDA plays an important role in promotion and standards, but $100 billion in exports requires a more predictable investment policy.

4. Market access and non-tariff barriers: Export expansion is based on compliance with the foreign food safety policies of the importing countries and on proactive market development activities. Therefore, rapid government diplomacy and industry of the moment are needed.

To convert India’s agricultural export potential into USD 100 billion, collaboration between policymakers and industry leaders is a must. How can we do it? First, ensure world-class logistics and cold chain infrastructure, where economies of scale can be leveraged through integrated farm-to-port hubs and public support that can reduce the risk of private investment.

Second, make compliance with standards a must, with some operational flexibility, through harmonized digital certifications and accredited testing agencies at the district level to reduce the risk of export rejection.

Third, support demand creation and market access through a combination of trade missions and buyer-seller meetings to address non-tariff barriers. Fourth, financial and risk management tools and insurance products need to be aligned with the seasonality and perishability of agricultural products.

We also need to strengthen data and R&D linkages to improve the export product basket.

The cooperation mechanisms

These mechanisms are practical levers that have been used elsewhere and can be scaled up in India:

1. Public-private cold chain clusters (PPP AEZs).): Identified Agri Export Zones (AEZs) where the government can provide land/connectivity, and the private sector develops cold chains and packing houses. The government can co-finance the initial Capex to reduce IRR hurdles and build on the existing AEZ policy under APEDA.

2. Co-create investment roadmaps for the central stateThe Center and states should jointly prepare investment roadmaps with time-bound targets for warehousing, domestic container depots, air freight slots and renewable energy for cold storage.

3. Access to the market: A task force between the Ministry of Commerce and industry associations that could target 4-6 new markets per commodity, along with introductions of digital buyers to reduce risk.

4. Design financial products led by banks and government to reduce risk. New financial products that focus on working capital, accounts receivable financing and freight guarantees, taking seasonal cycles into account. Partial public credit guarantees for new export categories will also be issued to reduce risks for new exporters.

5. Capacity building and quality testing laboratory networks. The industry can fund accredited laboratories near export clusters, along with joint training programs for farmer producer organizations and packaging staff on international export standards.

To keep the collaboration effective, we need to set and measure KPIs every quarter, such as new export product categories, added cold storage capacity (MT), number of accredited laboratories and APEDA e-cert transactions, etc., to create the conditions to achieve the $100 billion target.

The author is CEO and General Secretary of PHDCCI

Published on February 15, 2026

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