In a significant move to strengthen India’s export ecosystem and provide relief to small and medium enterprises (MSMEs) facing global trade disruptions, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a ₹45,060 crore package. The package includes a ₹25,060 crore Export Promotion Mission (EPM) and a ₹20,000 crore Credit Guarantee Scheme for exporters. The initiative, announced in the Union Budget 2025, is aimed at enhancing India’s export competitiveness, improving liquidity for exporters, and mitigating the impact of global economic headwinds such as high tariffs and geopolitical uncertainties.
Comprehensive Export Promotion Mission to Strengthen Export Ecosystem
Information and Broadcasting Minister Ashwini Vaishnaw, while briefing the media, said the newly approved Export Promotion Mission is a “comprehensive and forward-looking framework” designed to promote the entire export ecosystem. He added that the mission will operate for a tenure of six years, focusing on strengthening export infrastructure, providing affordable trade finance, and improving market access for Indian products. The EPM, worth ₹25,060 crore, will serve as a cornerstone of the government’s broader vision to achieve $1 trillion in merchandise exports in the coming years.
Vaishnaw explained that the mission is structured around two main pillars Niryat Protsahan (Export Promotion) and Niryat Disha (Export Direction). The first pillar aims to improve access to affordable trade finance for MSMEs through mechanisms such as interest subvention for pre-shipment and post-shipment credit, export factoring, credit enhancement, and collateral guarantees. It will also introduce credit cards specifically for e-commerce exporters to facilitate small-ticket transactions and reduce procedural hurdles.
The second pillar, Niryat Disha, focuses on helping exporters navigate and overcome non-tariff barriers imposed by several countries. These barriers often include stringent product standards, compliance requirements, and regulatory complexities that make market entry difficult for Indian goods. Vaishnaw mentioned that the mission will assist exporters in meeting technical standards, product certifications, and regulatory norms required in various international markets. He emphasized that this pillar will also help exporters diversify into new markets and reduce overdependence on traditional destinations.
Sectors that have been particularly affected by recent trade disruptions will receive priority under this mission. These include textiles, leather, gems and jewellery, engineering goods, and marine products — all of which are labour-intensive sectors and significant contributors to India’s export basket. These industries have been hit hard in recent months due to the 50% tariff imposed by the Trump administration in the United States, India’s largest merchandise export destination. The mission seeks to provide targeted assistance to these sectors to cushion the adverse impact of trade barriers and maintain export momentum.
The commerce ministry, in a statement, highlighted that the EPM will also focus on non-financial enablers to enhance market readiness and competitiveness. This includes assistance in export quality and compliance, packaging, international branding, participation in global trade fairs, export warehousing, and logistics support. Additionally, inland transport reimbursements, trade intelligence, and capacity-building initiatives will form a crucial part of the mission’s framework. Vaishnaw stated that India’s exports are currently growing at a rate faster than global export growth, and with this mission, India is better positioned to achieve its ambitious export targets.
Credit Guarantee Scheme to Ensure Liquidity and Financial Support
Alongside the Export Promotion Mission, the Cabinet also approved the ₹20,000 crore Expansion of Credit Guarantee Scheme for Exporters, aimed at ensuring liquidity and credit access for exporters — especially MSMEs — in a challenging global environment. Vaishnaw noted that the scheme has been introduced at a time when certain countries’ trade and economic policies are creating obstacles for others, thereby disrupting the global trading order. The scheme is designed to provide a safety net to Indian exporters and ensure that they can continue operations smoothly despite global headwinds.
Under the scheme, exporters will be able to avail themselves of additional working capital up to 20% of their sanctioned export limits. This credit will be collateral-free and backed by a 100% government guarantee through the National Credit Guarantee Trustee Company (NCGTC). The scheme will remain valid until March 31, 2026, and may be extended further based on the evolving economic conditions and approval from the finance ministry.
Vaishnaw mentioned that detailed guidelines for the scheme will be issued shortly by the Ministry of Commerce and Industry. The framework aims to simplify access to credit, reduce procedural delays, and enable faster disbursement of funds for exporters in need of working capital. By offering a full government guarantee, the scheme aims to encourage banks and financial institutions to extend greater credit support to MSMEs without the usual apprehensions associated with collateral-free loans.
Industry experts have welcomed the move, calling it timely and well-structured. Ajay Sahai, Director General and CEO of the Federation of Indian Export Organisations (FIEO), described the Export Promotion Mission and Credit Guarantee Scheme as a “pragmatic and forward-looking vision” for India’s trade sector. He said that the twin initiatives create a unified framework that combines financial and non-financial interventions, offering both stability and adaptability in a volatile global market.
According to Sahai, MSMEs often face multiple challenges such as limited access to affordable finance, difficulty in meeting compliance standards, and lack of exposure to global markets. The new schemes, he added, will address these challenges by providing collateral-free credit, compliance assistance, and support for international market visibility through branding and participation in trade events. These steps, he emphasized, will make Indian exporters more resilient and competitive globally.
The introduction of the EPM and Credit Guarantee Scheme marks a strategic shift in India’s export policy approach — from reactive responses to proactive planning. The government aims not only to provide short-term relief to exporters but also to build a more robust and self-sustaining export ecosystem that can adapt to changing global trade dynamics.
The move also comes at a crucial time when the global trade environment is undergoing significant shifts due to rising protectionism, geopolitical tensions, and supply chain disruptions. Many Indian exporters, particularly in labour-intensive sectors, have been struggling with increased tariffs and reduced demand in major markets like the United States and Europe. The Export Promotion Mission’s focus on both financial assistance and structural reforms seeks to position India as a reliable and competitive exporter amid these challenges.
The twin schemes align with India’s long-term goal of expanding its global trade footprint, promoting MSME-driven growth, and achieving sustainable export-led economic development. The government’s emphasis on liquidity support, export finance, and compliance readiness reflects a comprehensive understanding of the evolving needs of exporters and the importance of empowering small enterprises to contribute meaningfully to India’s global trade ambitions.
