Countering Trump tariffs impact! Modi government approves new Export Promotion Mission & credit guarantee scheme for exporters; check details
Prime Minister Narendra Modi-led Union Cabinet on Wednesday approved an Export Promotion Mission (EPM) with an outlook of Rs 25,060 crore. The move assumes significance at a time when India’s exports to the US face a penal 50% tariff. Additionally, the Cabinet also approved the expansion of credit guarantee scheme for exporters.The Export Promotion Mission scheme was first announced by FM Nirmala Sitharaman in the Union Budget 2025 speech earlier this year. The duration of the scheme will be six years from FY 2025-26 to FY 2030-31. The Export Promotion Mission will consolidate multiple schemes into a single mechanism.
The Export Promotion Mission aims to introduce an extensive, adaptable and digital-first approach towards boosting exports. EPM will consolidate key export support schemes such as the Interest Equalisation Scheme (IES) and Market Access Initiative (MAI), aligning them with contemporary trade needs.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.
Export Promotion Mission: Two integrated sub-schemes:
Niryat Protsahan
- Interest subvention for pre- and post-shipment credit: to provide affordable finances to
MSME exporters - Alternative Trade Instruments: promote export factoring and deep tier financing
- Credit cards for e-commerce exporters: To support E-Commerce exporters with alternative credit instruments
- Collateral support for export credit: Aims to bridge the existing collateral gap and enable smoother, more inclusive access to export credit
- Support for emerging export opportunities: To enable Indian MSMEs to expand into new, or high-risk markets through credit enhancement
Niryat Disha
- Support for export quality and technical compliances: support for testing, certification, and audits required to meet global standards
- Support for Market Access: facilitating participation in international trade delegations, buyer–seller meets, reverse buyer–seller meets, and product demonstrations, for both goods and services
- Support for export warehousing: Improve export fulfillment and reduce logistics cost through shared infrastructure
- Support for inland transport and handling: offset higher logistics costs in remote or low-export-intensity districts
- Support for export branding and packaging: enhance India’s export identity through unified branding, packaging, and specific campaigns
- Support for trade facilitation and intelligence: strengthen institutional and digital capacities of MSMEs, industry associations, clusters and district-level bodies
The Mission is designed to directly address structural challenges that constrain Indian exports, including:
- limited and expensive trade finance access,
- high cost of compliance with international export standards,
- inadequate export branding and fragmented market access, and
- logistical disadvantages for exporters in interior and low-export-intensity regions.
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 Mission is expected to:
- facilitate access to affordable trade finance for MSMEs,
- enhance export readiness through compliance and certification support,
- 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.
Credit Guarantee Scheme for Exporters
This initiative aims to ensure complete credit guarantee coverage through National Credit Guarantee Trustee Company Limited (NCGTC) to Member Lending Institutions (MLIs) for providing additional credit facilities of up to Rs.20,000 crore to qualified exporters, including MSMEs.The Department of Financial Services (DFS) will execute the scheme via NCGTC to deliver supplementary credit support through MLIs to eligible exporters, including MSMEs. A management committee, headed by the Secretary of DFS, will supervise the scheme’s progress and implementation.The initiative aims to boost Indian exporters’ international competitiveness and encourage expansion into emerging markets. The CGSE’s collateral-free credit access will enhance liquidity, ensure operational continuity, and support India’s progress towards the $1 trillion export target, furthering the nation’s advancement towards Aatmanirbhar Bharat.Exports constitute approximately 21% of GDP in FY 2024-25 and significantly contribute to foreign exchange reserves. The export sector provides employment to over 45 million people directly and indirectly, with MSMEs accounting for nearly 45% of total exports. Consistent export growth has been vital in maintaining India’s current account balance and economic stability.To strengthen market diversification and global competitiveness, exporters require enhanced financial assistance and adequate time. Therefore, active government intervention providing additional liquidity support will facilitate business growth and market expansion, the release said
