Massive ₹25,060 Crore Export Boost Unveiled! India's Bold Plan to Conquer Global Markets Amidst US Tariffs.

Economy

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Updated on 12 Nov 2025, 04:57 pm

The Indian Union Cabinet has greenlit a significant Export Promotion Mission (EPM) with a ₹25,060 crore budget, designed to run for five years from FY2026 to FY2031. This initiative aims to bolster India's export competitiveness in a challenging global market, particularly in response to US import tariffs. A crucial component is the expansion of the credit guarantee scheme for exporters, where the National Credit Guarantee Trustee Company Ltd (NCGTC) will back up to ₹20,000 crore in additional loans for eligible exporters, including Micro, Small, and Medium Enterprises (MSMEs). Priority support will be directed towards sectors heavily affected by global tariff escalations, such as textiles, leather, gems & jewellery, engineering goods, and marine products. The EPM consolidates and integrates vital export support schemes like the Interest Equalisation Scheme (IES) and the Market Access Initiative (MAI) into two sub-schemes: Niryat Protsahan and Niryat Disha. The Directorate General of Foreign Trade (DGFT) will oversee its implementation through a dedicated digital platform for streamlined processes. The mission offers affordable trade finance through interest subvention, export factoring, and credit enhancement, alongside non-financial support like quality compliance, branding assistance, and logistics. This comes as India's goods exports remained flat in FY25, and exports to the US, its largest market, saw a 12% drop in September following the US tariff hike.

Impact: This mission is expected to provide a substantial boost to Indian exports, helping businesses sustain orders, protect jobs, and explore new markets. It will improve the financial health of exporters through better credit access and reduce their cost of borrowing. The focus on specific sectors will help them regain competitiveness. The overall effect could lead to increased foreign exchange earnings and economic growth. Rating: 8/10

Definitions: - Export Promotion Mission (EPM): A government initiative designed to encourage and facilitate the export of goods and services from a country. - US President Donald Trump’s import tariffs: Taxes imposed by the US government on goods imported from other countries, making them more expensive. - Credit Guarantee Scheme for Exporters (CGSE): A scheme where a government or agency guarantees a portion of loans given to exporters, reducing risk for banks and encouraging lending. - National Credit Guarantee Trustee Company Ltd (NCGTC): An entity that provides credit guarantees for loans to MSMEs and other businesses in India. - MSMEs (Micro, Small, and Medium Enterprises): Small and medium-sized businesses, crucial for employment and economic growth. - Interest Equalisation Scheme (IES): A scheme that reduces the interest burden on exporters by subsidizing a portion of the interest paid on export credit. - Market Access Initiative (MAI): A scheme to support exporters in accessing international markets through various promotional activities. - Directorate General of Foreign Trade (DGFT): An organization under the Ministry of Commerce and Industry responsible for promoting exports and imports. - Interest Subvention: A subsidy paid by the government to reduce the interest rate on loans for specific purposes. - Export Factoring: A financial transaction where a company sells its accounts receivable (invoices) to a third party (a factor) at a discount to get immediate cash.