Government Launches Major Initiatives to Support MSMEs
The Government of India has announced a series of initiatives aimed at enhancing the competitiveness of Micro, Small, and Medium Enterprises (MSMEs) in the global market. With a significant investment of Rs.25,060 crore allocated for the financial years 2025–26 to 2030–31, these programs are designed to streamline export promotion and empower small businesses to thrive amid evolving trade conditions.
New Export Promotion Mission
Centrally, the Government has introduced the Export Promotion Mission (EPM), which will replace fragmented schemes with a cohesive, outcome-driven framework. This mission is set to respond dynamically to the needs of exporters and address challenges in global trade.
EPM will operate through two integrated sub-schemes: the NIRYAT PROTSAHAN and NIRYAT DISHA. The NIRYAT PROTSAHAN initiative will focus on enhancing access to affordable trade finance for MSMEs. It encompasses various financial instruments such as interest subvention, export factoring, collateral guarantees, credit cards for e-commerce exporters, and support for exploring new markets.
On the other hand, NIRYAT DISHA will provide non-financial support directed at improving the market readiness and competitiveness of MSMEs. This includes assistance in areas like export quality compliance, international branding, packaging, participation in trade fairs, and logistics management.
Credit Guarantee Scheme for Exporters
Another critical program is the newly approved Credit Guarantee Scheme for Exporters, which aims to provide 100% credit guarantee coverage for member lending institutions. It will facilitate additional collateral-free credit facilities amounting to Rs.20,000 crore for eligible exporters, including MSMEs. This initiative is expected to bolster the global competitiveness of Indian exporters while promoting broader access to liquidity, hence ensuring smoother business operations.
International Cooperation and GST Rationalization
The International Cooperation Scheme is also significant, aimed at enhancing the capacity of MSMEs. This program facilitates participation in international exhibitions, fairs, and meetings abroad while reimbursing costs related to exports.
Moreover, comprehensive GST rationalization recently implemented by the government will strengthen MSMEs by improving local supply chains in vital sectors such as automobiles, textiles, food processing, logistics, and handicrafts. By lowering GST rates, the government has made raw materials and services more affordable, encouraging small and medium enterprises to scale operations, innovate, and compete effectively in both domestic and international markets.
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