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₹45k-cr export boost gets cabinet approval
Sectors braving the “adverse impact” of trade disruptions will get priority under the mission, he said. The sectors are as textiles, leather, gem and jewellery, engineering goods and marine products
The Union cabinet on Wednesday approved a ₹45,060 crore-package, including a ₹25,060 crore Export Promotion Mission proposed in the Union budget, that aims to provide liquidity support to small and medium enterprises and help exporters tide over global headwinds such as high US tariffs.
The cabinet chaired by Prime Minister Narendra Modi has approved a “new and comprehensive” Export Promotion Mission (EPM) to promote the “complete export ecosystem” worth ₹25,060 crore, information and broadcasting minister Ashwini Vaishnaw said in a briefing. It has also approved a ₹20,000 crore-credit guarantee scheme, he said, adding that the scheme aims “to support our exporters in the current situation” as global trade has been hit by volatile geopolitical developments and tariff barriers.
Speaking about the EPM, he said: “This is a very comprehensive mission, which has been approved by the Cabinet under the leadership of our Hon’ble Prime Minister today. As you recall, in the previous Budget [February 1, 2025] this announcement was made that one export promotion mission will be started,” he said, adding that the mission has a tenure of six years.
Sectors braving the “adverse impact” of trade disruptions will get priority under the mission, he said. The sectors are as textiles, leather, gem and jewellery, engineering goods and marine products, he said. All these products are labour-intensive and they have been hit hard in the last three months by the 50% tariff imposed by the Trump administration. The US is traditionally India’s top merchandise export destination, mainly buying labour-intensive products.
According to the minister, EPM has two pillars -- ‘Niryat Protsahan’ (Export Promotion) and ‘Niryat Disha’ (Export Direction). The first one focuses on improving access to affordable trade finance for micro, small and medium enterprises (MSMEs) through a range of instruments such as interest subvention for pre and post shipments, export factoring, collateral guarantees, credit cards for e-commerce exporters, and credit enhancement support for diversification into new markets.
The second pillar of this mission is focused on countering “non-tariff barriers” in various markets, Vaishnaw said, citing examples of some countries having extra-stringent standards to dissuade imports. This segment of EPM will assist exporters in technical matters required to meet such standards, he added.
The commerce ministry said in a statement that it focuses on non-financial enablers that enhance market readiness and competitiveness, including export quality and compliance support, assistance for international branding, packaging, and participation in trade fairs, export warehousing and logistics, inland transport reimbursements, and trade intelligence and capacity-building initiatives. Vaishnaw said India’s exports are growing faster than the global export growth rate and EPM will help India achieve its over $1 trillion merchandise exports target.
The other scheme – ₹20,000 crore- Expansion of Credit Guarantee Scheme for Exporters – seeks to protect Indian exporters, particularly Indian MSMEs, from “current global geo-economic environment where certain countries are creating problems for other countries because of their policies”, Vaishnaw said.
The scheme provides additional working capital up to 20% of sanctioned export limits, collateral-free credit support, and 100% government’s guarantee through National Credit Guarantee Trustee Company (NCGTC). The scheme is valid up to March 31, 2026. The minister said the commerce and industry ministry will issue detailed guidelines for the scheme soon and the scheme could be extended further with the approval of the finance ministry.
Ajay Sahai, director general and CEO of the Federation of Indian Export Organisations, said the EPM and the Credit Guarantee Scheme reflects a “pragmatic and forward-looking vision” for India’s trade sector. “By bringing together financial and non-financial interventions under a unified framework, the twin schemes provide much-needed continuity, flexibility, and responsiveness to global trade dynamics at most challenging times in global trade history. It will particularly empower MSMEs, who often struggle with access to affordable collateral free finance at competitive rates, showcasing of their products in global markets and market access challenges due to lack of compliance support,” he said.
