GOVT. ANNOUNCES 7 ADDITIONAL MEASURES UNDER EXPORT PROMOTION MISSION

NEWS: The Ministry of Commerce has introduced 7 new measures under the Export Promotion Mission to help MSMEs compete better in global markets.

Export Promotion Mission

• Boost India’s exports
• Improve global competitiveness of Indian firms
• Support MSMEs in international trade
• Diversify export markets
• Reduce logistics & financial barriers

Role of MSMEs in India:

• ~30% of GDP contribution
• ~45% of exports (approx.)
• Major employment generator
• Backbone of manufacturing & services

Structural Problems Faced by Exporters

• High Cost of Capital: MSMEs struggle to get affordable loans
• Limited Access to Trade Finance: Difficulty in getting credit guarantees
• Compliance Burden: International regulations, Quality standards, Documentation costs
• Logistics Disadvantages: High shipping costs, Infrastructure gaps, Supply chain inefficiencies
• Barriers to Market Entry: Lack of market information

Key Measures

• Interest subvention (subsidy on interest), partial credit guarantees: Increase liquidity and exporter confidence
• Special working capital support for ecommerce exportersàUp to ₹50 lakh support, 90% guarantee coverage
• Overseas Inventory Credit Facilityà Support up to ₹5 crore, 75% guarantee coverage
• 75% interest subsidy, Cap: ₹15 lakh per applicant per year
• Support for Overseas Warehousing & Fulfilment Infrastructureà Up to 30% of approved project cost