Modi Government Launches New Export Promotion Mission and Credit Guarantee Scheme
Prime Minister Narendra Modi’s Union Cabinet has approved a significant Export Promotion Mission (EPM) with a budget of ₹25,060 crore, aimed at enhancing India’s export capabilities amid challenging global trade conditions. This initiative comes at a crucial time, as Indian exports to the United States are currently facing a steep 50% tariff. The EPM, which will run from FY 2025-26 to FY 2030-31, seeks to streamline various export support schemes into a unified framework, thereby fostering a more robust and adaptable export environment.
Objectives of the Export Promotion Mission
The Export Promotion Mission is designed to modernize India’s export strategies by consolidating existing schemes such as the Interest Equalisation Scheme (IES) and the Market Access Initiative (MAI). This consolidation aims to create a more effective support system that aligns with the evolving needs of global trade. The mission will focus on sectors that have been adversely affected by recent tariff increases, including textiles, leather, gems and jewellery, engineering goods, and marine products. By providing targeted support, the EPM aims to sustain export orders, protect jobs, and encourage diversification into new markets.
The mission’s approach is characterized by its digital-first strategy, which will facilitate easier access to export-related resources and information. This initiative is expected to address several structural challenges that Indian exporters face, such as limited access to affordable trade finance, high compliance costs with international standards, and inadequate branding and market access. By tackling these issues, the EPM aims to enhance the overall competitiveness of Indian exports on the global stage.
Integrated Sub-Schemes: Niryat Protsahan and Niryat Disha
The Export Promotion Mission comprises two integrated sub-schemes: Niryat Protsahan and Niryat Disha. Niryat Protsahan focuses on providing financial support to MSME exporters through various means, including interest subvention for pre- and post-shipment credit, alternative trade instruments, and collateral support for export credit. This sub-scheme aims to bridge the existing gaps in financing and enable smoother access to credit for exporters.
On the other hand, Niryat Disha is designed to enhance export quality and compliance with international standards. It will support exporters in meeting technical requirements through testing, certification, and audits. Additionally, Niryat Disha will facilitate participation in international trade delegations and improve export warehousing to reduce logistics costs. By enhancing branding and packaging, this sub-scheme aims to strengthen India’s export identity and improve market access for Indian products.
Credit Guarantee Scheme for Exporters
In conjunction with the Export Promotion Mission, the Cabinet has also approved an expansion of the credit guarantee scheme for exporters. This initiative will provide complete credit guarantee coverage through the National Credit Guarantee Trustee Company Limited (NCGTC) for Member Lending Institutions (MLIs). The scheme aims to offer additional credit facilities of up to ₹20,000 crore to qualified exporters, including MSMEs.
The Department of Financial Services (DFS) will oversee the implementation of this scheme, ensuring that eligible exporters receive the necessary financial support. By enhancing liquidity and operational continuity, this initiative is expected to bolster the international competitiveness of Indian exporters and encourage their expansion into emerging markets. With exports contributing significantly to India’s GDP and employment, the government’s proactive measures are crucial for maintaining economic stability and achieving the ambitious target of $1 trillion in exports.
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