Export Promotion Mission

Syllabus: GS3/Economy

Context

• Amid pressure on goods exports to the US due to high 50% tariffs, the Union Cabinet has approved a six-year Export Promotion Mission with an outlay of Rs 25,060 crore.

Export Promotion Mission

• In the Union Budget for 2025-26, the Finance Minister announced an Export Promotion Mission.
  • It would facilitate easy access to export credit, cross-border factoring support, and support to MSMEs to tackle non-tariff measures in overseas markets.
• Ministries: Driven jointly by the Ministries of Commerce and Industry, the Ministry of Micro, Small, and Medium Enterprises, and the Ministry of Finance.
• Under EPM, priority support will be extended to sectors impacted by recent global tariff escalations, such as textiles, leather, gems & jewellery, engineering goods, and marine products.
• The Directorate General of Foreign Trade (DGFT) will act as the implementing agency, with all processes  from application to disbursal.
  • It will be managed through a dedicated digital platform integrated with existing trade systems.

Major Components of EPM

Financial Support

• Credit Guarantee Scheme for Exporters (CGSE): Provides 100% coverage by the National Credit Guarantee Trustee Company Ltd (NCGTC).
  • For additional credit facilities up to ₹20,000 crore to eligible exporters (including MSMEs).
  • Enables collateral-free credit, improving liquidity and competitiveness.
• Integration of Schemes: Interest Equalisation Scheme (interest subvention for exporters).
  • Market Access Initiative (MAI) (support for trade fairs, market promotion).
  • Both merged under a digitally driven EPM framework.

Non-Financial Support

• Addressing Non-Tariff Barriers (NTBs): Funding for compliance, certifications, and technical standards.
• Market Acquisition & Branding: Assistance for international exhibitions, packaging, and branding.
• Logistics Cost Reduction: Support for supply chain efficiency and trade facilitation.

The Mission is expected to:

• Facilitate access to affordable trade finance for MSMEs.
• Enhance export readiness through compliance and certification support.
• Improve market access and visibility for Indian products.
• Boost exports from non-traditional districts and sectors.
• Generate employment across manufacturing, logistics, and allied services.

Source: IE