EXPORT PROMOTION MISSION

NEWS

• The Union Cabinet approved a 6-year Export Promotion Mission (EPM) with an outlay of ₹25,060 crore.
• Move comes as India faces steep 50% US tariffs (effective from 27 August 2025)—currently the highest in the world after the China-US trade deal.

HIGHLIGHTS

Why the Decision Now?

• US-bound exports dropped 12% in September 2025.
• Engineering goods exports to the US fell 9.4%.
• Key sectors like textiles, apparel, leather, gems & jewellery showing significant contraction.

Export Promotion Mission (2025–31)

Objectives

• Sustain export orders during global tariff escalations.
• Protect jobs and support market diversification.
• Enhance competitiveness of MSME exporters.

Key Features

• Consolidates major schemes such as:
  • Interest Equalisation Scheme
  • Market Access Initiative
• Offers support for:
  • Compliance with non-tariff barriers (standards, certifications).
  • Branding, packaging, and logistics costs.
  • Market acquisition through global exhibitions.

Focus Sectors

• Textiles and apparel
• Engineering goods
• Leather
• Gems & jewellery
• Marine products

 The Mission will operate through two integrated sub-schemes:

* Niryat Protsahan: Focuses on improving access to affordable trade finance for MSMEs.

* Niryat Disha: Focuses on non-financial enablers that enhance market readiness and competitiveness, including export quality and compliance support, assistance for international branding, and packaging.

Credit Guarantee Scheme for Exporters (CGSE)

Key Provisions

• ₹20,000 crore collateral-free credit for exporters.
• 100% credit guarantee by National Credit Guarantee Trustee Company.
• Special emphasis on MSMEs.

Expected Impact

• Strengthen liquidity and business continuity.
• Enhance global competitiveness and diversification into emerging markets.

Sectoral Impact & Industry Response

• Textiles & Apparel:
  • Exports to US fell 10.34% in September 2025.
  • Industry bodies expect EPM to boost FTA-linked opportunities and market diversification.
• Export Promotion Councils:
  • Hail the mission as a unified framework combining financial + non-financial support.
  • Expected to reduce compliance burden and support first-time exporters.