Cabinet Approves Rs 45,000 Cr Outlay To Strengthen India’s Export Ecosystem

The Union Cabinet on Tuesday approved the Export Promotion Mission (EPM) with a total outlay of Rs 25,060 crore for six years starting FY26, aimed at strengthening India’s export competitiveness, particularly for MSMEs, first-time exporters, and labour-intensive sectors, Union Minister Ashwini Vaishnaw announced. Additionally, fund allocation of Rs 20,000 crore towards the expansion of credit guarantee scheme for exporters was announced. The EPM, which will continue until 2030–31, is designed to provide targeted support to sectors affected by recent global tariff escalations, including textiles, leather, gems & jewellery, engineering goods, and marine products. These measures are expected to help sustain export orders, protect jobs, and drive diversification into new markets. Strategic Mission To Counter Global Headwinds The EPM comes at a time when Indian exporters are facing heightened challenges due to the United States imposing a 50 per cent tariff on most Indian exports, effective from 27 August 2025. Initially announced in the Union Budget 2025–26 with an allocation of Rs 2,250 crore, the mission has now been significantly expanded in both scope and duration, marking a shift from multiple fragmented schemes to a unified, outcome-based framework capable of adapting to global trade dynamics. “The EPM represents a shift towards an integrated, adaptive export policy mechanism that can respond swiftly to global trade disruptions and evolving exporter needs,” the government said in a statement. Credit Guarantee Scheme For Exporters Alongside EPM, the Cabinet also cleared a Credit Guarantee Scheme for Exporters (CGSE) under which the National Credit Guarantee Trustee Company (NCGTC) will provide full credit guarantee coverage to banks for up to Rs 20,000 crore in additional loans to eligible exporters, including MSMEs. The EPM will function through two integrated sub-schemes. The first, Niryat Protsahan, focuses on improving access to affordable trade finance for MSMEs through mechanisms such as interest subvention, export factoring, collateral guarantees, credit cards for e-commerce exporters, and credit enhancement support to facilitate diversification into new markets. The second, Niryat Disha, aims to enhance export readiness and competitiveness through non-financial enablers including export quality and compliance assistance, branding and packaging support, participation in international trade fairs, warehousing and logistics reimbursements, and trade intelligence and capacity-building initiatives. The Directorate General of Foreign Trade (DGFT) will act as the implementing agency, managing all processes—from application to disbursal—through a dedicated digital platform integrated with existing trade systems. Broader Goals The government said the mission is expected to facilitate affordable trade finance for MSMEs, strengthen export compliance and certification, expand market access and visibility for Indian products, boost exports from non-traditional districts and sectors, and create employment opportunities across manufacturing, logistics, and allied services. By consolidating and modernising existing export schemes such as the Interest Equalisation Scheme (IES) and the Market Access Initiative (MAI), the Export Promotion Mission seeks to make India’s export ecosystem more resilient, responsive, and globally competitive.