Export Promotion Mission (EPM) Approved: Includes Niryat Protsahan, Niryat Disha and ₹20,000 Crore Credit Guarantee Scheme for Exporters
- TPP
- 7 days ago
- 4 min read
The new Export Promotion Mission consolidates IES and MAI schemes, launches a unified digital platform under DGFT, strengthens trade finance and compliance support for MSMEs, and extends priority assistance to sectors impacted by global tariff escalations for FY 2025–26 to 2030–31.
In a major decision with direct implications for India’s export resilience, the Union Cabinet chaired by Prime Minister Narendra Modi has approved the Export Promotion Mission (EPM) for a six-year period from FY 2025–26 to FY 2030–31, with a total financial outlay of ₹25,060 crore.
First announced in the Union Budget 2025–26, the Mission aims to give India an integrated, flexible, digitally-driven export-promotion architecture—particularly supporting MSMEs, first-time exporters, and labour-intensive sectors that have been hit by recent global tariff escalations and international market disruptions.
EPM marks a transformational shift from India’s earlier approach of operating multiple fragmented export schemes, replacing them with a single, outcome-based, adaptive framework that can quickly respond to global trade challenges.
Unlike the earlier system, which had overlapping provisions and limited synergy, the new mission integrates and modernizes schemes such as the Interest Equalisation Scheme (IES) and the Market Access Initiative (MAI), aligning them with contemporary global trade requirements.
Built on a collaborative institutional structure, the Mission brings together the Department of Commerce, Ministry of MSME, Ministry of Finance, Export Promotion Councils, Commodity Boards, Financial Institutions, State Governments, and industry associations.
The Directorate General of Foreign Trade (DGFT) will be the nodal implementing agency, overseeing the scheme through a fully digital portal integrated with existing trade platforms. All operations—from applications to verification, approvals, reimbursements, and disbursal—will take place through this unified technological interface.
Mission Architecture: Two Integrated Sub-Schemes for Financial and Non-Financial Support
To tackle the full spectrum of export bottlenecks, EPM comprises two major sub-schemes: NIRYAT PROTSAHAN and NIRYAT DISHA—each addressing different dimensions of exporter needs.
A. NIRYAT PROTSAHAN: Financial Incentives and Affordable Trade Finance Access
This component focuses primarily on improving MSMEs’ access to affordable, timely and adequate export finance, an issue that has historically constrained India’s export potential. Key financial instruments include:
Interest subvention to reduce borrowing costs
Export factoring support
Collateral-free guarantees
Credit cards for e-commerce exporters
Credit enhancement measures for entering new markets
Support for credit diversification, especially in volatile sectors
This is significant because Indian exporters—particularly MSMEs—face one of the highest trade-finance gaps globally due to collateral shortages, high interest rates, and limited access to institutional credit.
B. NIRYAT DISHA: Non-Financial Competitiveness, Branding & Market-Readiness Support
NIRYAT DISHA focuses on all enablers beyond finance that determine export competitiveness:
Support for export quality and compliance with international standards
Assistance for branding, packaging, and international marketing
Aid for participation in global exhibitions, trade fairs, and promotional events
Warehousing and logistics support
Inland transport reimbursements, especially for exporters in interior regions
Trade intelligence, market insights, and capacity-building programmes
This component aims to create a level playing field for Indian exporters who often face higher compliance costs and weaker brand visibility in global markets.
Why EPM Is Critical: Structural Issues Hindering Indian Exports
The Mission directly tackles long-standing pain points:
Limited and expensive trade finance for MSMEs
High costs of compliance with international technical standards
Weak export branding and fragmented international market access
Logistical disadvantages, particularly for exporters located far from ports
Difficulties faced by exporters in low-export-intensity districts
Impact of recent tariff escalations, especially in the United States
The government has emphasized that EPM is an adaptive mechanism designed to respond to global trade volatility—not just a funding scheme.
Tariff Shock: US Imposes 50% Tariffs on Indian Goods
The approval comes at a time when steep 50% US tariffs, effective August 27, have severely impacted India’s export performance—making Indian goods some of the most heavily taxed in the world after the China-US trade war.
Official trade data show:
India–US exports dropped 12% in September
Engineering goods (25% of total exports) fell 9.4%
The textile & apparel sector—with the US as its largest market (28% share)—saw:
Textile exports drop 10.45%
Apparel exports drop 10.14%
Combined textile-apparel exports fall 10.34% year-on-year
India’s textile and apparel exports to the US were valued at nearly $11 billion in 2024–25. The sudden tariff pressure has left many exporters uncompetitive, particularly those fully dependent on the US market.
SEZ Stress: Multiple Units Request De-Notification
A government panel comprising officials from the Commerce and Industry Ministry, NITI Aayog, and exporters is drafting new SEZ norms to help manufacturers cope with tariff shocks. This review follows requests from several SEZ units—especially those dependent solely on the US market—seeking de-notification due to severe losses.
Key SEZ statistics:
India has 276 SEZ units
SEZ exports in FY25: $172 billion
Domestic sales are barely 2% of SEZ production
Indian SEZs significantly lag behind China’s SEZ model in scale and global competitiveness
Credit Guarantee Scheme for Exporters (CGSE): ₹20,000 Crore in Collateral-Free Credit
To complement the EPM, the Cabinet also approved the Credit Guarantee Scheme for Exporters (CGSE).
CGSE Highlights:
Provides 100% credit guarantee coverage
Offered by National Credit Guarantee Trustee Company Limited (NCGTC)
Enables additional ₹20,000 crore in collateral-free loans
Benefits both MSME and non-MSME exporters
Implemented through the Department of Financial Services (DFS)
A Management Committee chaired by the DFS Secretary will oversee the scheme
This measure will help Indian exporters maintain liquidity, support diversification, and retain global market presence during tariff-induced disruptions.
Additional Benefits and Expected Outcomes of EPM
The Mission is expected to:
Expand MSME participation in global trade
Enable access to affordable trade finance
Enhance compliance readiness and certification support
Strengthen international branding of Indian goods
Boost exports from non-traditional districts
Create employment in manufacturing, logistics, and allied services
Support sectors like textiles, leather, gems, engineering goods, and marine products
Help exporters tackle both tariff and non-tariff barriers
Build long-term export resilience
The Export Promotion Mission (EPM) represents one of India’s most ambitious export-support frameworks to date. By replacing fragmented schemes with a single, robust structure, integrating financial and non-financial assistance, and addressing both tariff and non-tariff challenges, the Mission positions India to compete more effectively in global markets.
With tariff pressures rising, SEZs under stress, and global competition intensifying, the EPM aims to protect export orders, sustain jobs, enhance competitiveness, diversify markets, and strengthen India’s global trade presence in an increasingly uncertain environment.
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