Cabinet approves ₹25,000 crore five-year export promotion mission to counter Trump tariffs, raise competitiveness
Cabinet steps in to counter Trump tariffs affecting Indian exporters
The Union Cabinet, on Wednesday, announced the long-pending export promotion mission (EPM) for five years with a total outlay of ₹25,060 crore to help exporters deal with US President Donald Trump’s import tariffs and increase their competitiveness in a turbulent global market.
The Cabinet also approved the expansion of the credit guarantee scheme for exporters (CGSE), under which the National Credit Guarantee Trustee Company Ltd (NCGTC) will provide full credit guarantee coverage to banks for up to ₹20,000 crore in additional loans to eligible exporters, including MSMEs.
Priority support
“Under EPM, priority support will be extended to sectors impacted by recent global tariff escalations, such as textiles, leather, gems & jewellery, engineering goods and marine products. The interventions will help sustain export orders, protect jobs, and support diversification into new geographies,” per a statement issued by the government.
Key export support schemes, including the interest equalisation scheme (IES) and the market access initiative (MAI), have been incorporated into the EPM. This was a primary demand of exporters who benefit significantly from both schemes.
The EPM, which will operate through two integrated sub-schemes — Niryat Protsahan and Niryat Disha — will provide a comprehensive, flexible, and digitally driven framework for export promotion, spanning FY26 to FY31.
“The Directorate General of Foreign Trade (DGFT) will act as the implementing agency, with all processes — from application to disbursal — being managed through a dedicated digital platform integrated with existing trade systems,” the statement noted.
Trade finance
The mission seeks to provide affordable trade finance for MSMEs through instruments such as interest subvention, export factoring, collateral guarantees, credit cards for e-commerce exporters, and credit enhancement support for diversification into new markets.
It also includes 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.
The additional credit support of ₹20,000 crore under the EPCG scheme has a validity of March 31 2026, and is aimed at supporting exploration of new export markets and boosting competitiveness, the government said.
India’s goods exports, which remained flat in FY25 at $437.42 billion, received a further jolt after the US imposed 50 per cent tariffs on most products in August this year. Exports to the US, India’s largest market, fell 12 per cent in September to $5.5 billion.
Published on November 12, 2025
