The government has approved the ₹25,060 crore Export Promotion Mission (EPM) and an additional ₹20,000 crore credit support for exporters facing the brunt of global trade uncertainties and high tariffs imposed by the United States. The EPM, slated to run for six years from FY 2025-26 to FY 2030-31, aims to boost India's export competitiveness, especially for MSMEs and labor-intensive sectors.
Key Components of the Export Promotion Mission
The Export Promotion Mission will operate through two sub-schemes: Niryat Protsahan (₹10,401 crore) and Niryat Disha (₹14,659 crore). Niryat Protsahan will focus on improving access to affordable trade finance for MSMEs via instruments like interest subvention, export factoring, collateral guarantees, credit cards for e-commerce exporters, and credit enhancement support for diversification into new markets. Niryat Disha will focus on non-financial enablers, enhancing market readiness and competitiveness. This includes export quality and compliance support, assistance for international branding, packaging, participation in trade fairs, export warehousing and logistics, inland transport reimbursements, and trade intelligence and capacity-building initiatives.
The mission is designed to tackle structural challenges that hinder Indian exports, including limited access to affordable trade finance, high compliance costs with international export standards, inadequate export branding, fragmented market access, and logistical disadvantages. The Directorate General of Foreign Trade (DGFT) will implement the EPM through a dedicated digital platform integrated with existing trade systems. The government expects the mission to facilitate affordable trade finance for MSMEs, improve market access and visibility for Indian products, boost exports from non-traditional districts and sectors, and generate employment across manufacturing, logistics, and allied services.
Additional Credit Support for Exporters
In addition to the EPM, the Cabinet has approved the expansion of the Credit Guarantee Scheme for Exporters, with an outlay of ₹20,000 crore. This scheme will provide 100% credit guarantee coverage by the National Credit Guarantee Trustee Company Limited (NCGTC) to Member Lending Institutions (MLIs). This initiative aims to extend additional credit facilities to eligible exporters, including MSMEs and provide collateral-free credit support for exporters. The scheme, to be implemented by the Department of Financial Services (DFS) through NCGTC, is expected to support the diversification of Indian exporters into new and emerging markets and is valid up to March 2026. It would provide credit guarantees on loans of up to ₹500 million.
Impact of US Tariffs and Focus Sectors
These approvals come in response to the 50% tariffs imposed by the U.S. on Indian goods, which took effect in late August. Priority support will be extended to sectors impacted by these tariffs, including textiles, leather, gems and jewelry, engineering goods, and marine products. Exporters have expressed concerns that labor-intensive sectors such as textiles, jewelry, and seafood, which operate on thin margins, have been severely affected, leading to job losses. Nearly 55% of India's exports to the U.S., worth about $48 billion, faced a cost disadvantage against competitors from Vietnam, China, and Bangladesh. India's merchandise exports to the U.S. fell by nearly 12% year-on-year in September, with engineering goods shipments down about 10%.
The government views the Export Promotion Mission as a long-term strategy that addresses challenges beyond tariffs and trade wars, with a focus on promoting exports, diversifying markets and the export basket, and encouraging exporters to improve the "exportability" of Indian products. The mission aims to make India's export framework more inclusive, technology-enabled, and globally competitive.
