The Indian government has announced a significant boost for its export sector, with a new package worth Rs 45,060 crore aimed at reducing costs for exporters and helping them explore new markets. This initiative is expected to support the country’s goal of reaching $1 trillion in exports.
A key part of this package is the new Export Promotion Mission (EPM), which will receive Rs 25,060 crore over six years. The main aim of the EPM is to lower the cost of credit for exporters. This will be achieved through interest subvention, where the government will help pay a portion of the interest on loans for exporters, especially for Micro, Small, and Medium Enterprises (MSMEs). The interest subsidy rate is yet to be decided, but it is expected to be between 2-3%, and could go up to 3.5% for riskier markets.
The EPM has two main parts: Niryat Protsahan and Niryat Disha. Niryat Protsahan, with an outlay of Rs 10,401 crore, focuses on reducing credit costs. This includes promoting alternative ways for exporters to get finance, such as factoring and offering credit guarantees. The government also plans to offer credit cards to e-commerce exporters who send smaller shipments through postal or courier services.
Niryat Disha, with an outlay of Rs 14,659 crore, will focus on helping exporters access markets. This includes covering the costs for testing, certification, and audits that are needed to meet the standards of different importing countries. It will also support exporters in participating in international trade fairs, buyer-seller meetings, and product demonstrations. This support is particularly important for small and medium exporters who may find it hard to afford these events on their own.
Another important scheme approved is the Credit Guarantee Scheme for Exporters (CGSE). This scheme, running until March 2026 and potentially longer, provides full credit guarantee coverage by the National Credit Guarantee Trustee Company (NCGTC) to banks and other lending institutions. This means lenders can offer up to Rs 20,000 crore in additional credit to eligible exporters, including MSMEs, without requiring collateral. By removing the need for collateral, the CGSE aims to improve the cash flow for businesses, ensure smooth operations, and support India’s export growth.
The government also plans to help exporters with logistics. This includes providing support for export warehousing and developing shared infrastructure to reduce logistics costs. Furthermore, smaller exporters will receive help with market intelligence, and there will be efforts to create a stronger Indian export identity through unified branding, packaging, and specific marketing campaigns. The idea of ‘Made in India’ as a strong global brand will be promoted.
This EPM consolidates many functions previously managed by older or less effective schemes. For the current financial year, Rs 2250 crore has been allocated to the mission, with specific amounts for the Market Access Initiative (MAI) and for supporting the lab-grown diamonds sector.