Ministry of Commerce Launches 7 New Interventions Under Export Promotion Mission (EPM) to Boost MSME Exports
- Prateek
- 1 day ago
- 4 min read
Government Strengthens MSMEs with Financial and Non-Financial Support Under ₹25,060 Crore Export Promotion Mission (2025–2031)
The Ministry of Commerce and Industry has launched seven additional interventions under the Export Promotion Mission (EPM), a flagship initiative designed to empower Micro, Small and Medium Enterprises (MSMEs) to compete effectively in global markets.
The new measures aim to address key structural constraints faced by MSMEs, including high cost of capital, limited access to diversified trade finance instruments, compliance burdens in international markets, logistics disadvantages, and barriers to market entry.
The Export Promotion Mission operates through two integrated sub-schemes — Niryat Protsahan and Niryat Disha — combining financial and non-financial support to create a comprehensive export ecosystem.
About Export Promotion Mission (EPM)
Vision of EPM
The Export Promotion Mission provides a comprehensive, flexible, and digitally driven framework for export promotion, aimed at enhancing India’s global trade footprint through MSME empowerment.
Key Highlights
Total Financial Outlay: ₹25,060 crore
Timeline: Six years (FY 2025–26 to FY 2030–31)
Implementing Agency: Directorate General of Foreign Trade (DGFT)
Target Beneficiaries: Micro, Small and Medium Enterprises (MSMEs)
Two Integrated Sub-Schemes
1. Niryat Protsahan (Financial Support)
Focuses on improving access to affordable trade finance and enabling diversification into new markets.
2. Niryat Disha (Non-Financial Support)
Enhances market readiness, competitiveness, compliance capability, and logistics efficiency of exporters.
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Seven New Interventions Under Export Promotion Mission
The Ministry has introduced four interventions under Niryat Disha and three under Niryat Protsahan.
Interventions Under Niryat Protsahan (Financial Support)
1. Export Factoring Support
This intervention promotes export factoring as a working capital solution for MSMEs. It also introduces a digital claim mechanism to enhance transparency and efficiency.
The measure is expected to ease liquidity pressures and improve cash flow cycles for exporters.
2. Credit Assistance for E-Commerce Exporters
To strengthen India’s growing e-commerce export segment, structured credit facilities have been introduced with interest subvention and partial credit guarantees.
Direct E-Commerce Credit Facility
Support up to ₹50 lakh
90% guarantee coverage
Designed to provide working capital and risk mitigation
Interest subvention of 2.75%
Subject to annual upper limit of ₹15 lakh per applicant
Overseas Inventory Credit Facility
Support up to ₹5 crore
75% guarantee coverage
Interest subvention of 2.75%
Subject to annual upper limit of ₹15 lakh per applicant
These structured mechanisms aim to strengthen exporter confidence and liquidity flows.
According to the Ministry, these provisions seek to provide credit assistance to e-commerce exporters through structured facilities that reduce financing risks.
3. Support for Emerging Export Opportunities
This intervention enables exporters to access new or high-risk markets through varied risk-sharing mechanisms and credit instruments.
It is designed to promote product and market diversification while encouraging exporters to explore untapped geographies.
Interventions Under Niryat Disha (Non-Financial Support)
4. TRACE – Trade Regulations, Accreditation & Compliance Enablement
TRACE supports exporters in meeting Testing, Inspection, and Certification (TIC) requirements in international markets.
This addresses compliance burdens that often restrict MSMEs from entering regulated global markets.
5. FLOW – Facilitating Logistics, Overseas Warehousing & Fulfilment
FLOW supports the establishment of overseas warehousing and e-commerce export hubs.
Exporters can receive assistance of up to 30% of approved project cost, for a maximum of three years, subject to participation criteria and prescribed ceilings.
This intervention aims to reduce delivery timelines and improve competitiveness in foreign markets.
6. LIFT – Logistics Interventions for Freight & Transport
LIFT mitigates geographical disadvantages faced by exporters in low export intensity districts.
The intervention seeks to address logistics constraints that inflate costs and reduce competitiveness.
7. INSIGHT – Integrated Support for Trade Intelligence & Facilitation
INSIGHT strengthens:
Exporter capacity-building
District and cluster-level facilitation under the Districts as Export Hubs initiative
Development of trade intelligence systems
This intervention aims to build institutional capabilities and improve data-driven export decision-making.
Also Read | Credit Guarantee Scheme for Exporters (CGSE)
Industry Reaction: FIEO Welcomes the Move
The Federation of Indian Export Organisations (FIEO) welcomed the interventions, stating that they would significantly ease working capital pressures.
According to FIEO:
Lower cost of finance and improved liquidity cycles will enable MSMEs to price competitively.
Exporters can accept larger orders.
Credibility with overseas buyers will improve.
Shared-risk credit mechanisms will encourage first-time exporters.
Product and market diversification will be promoted.
Government’s Broader Export Strategy
Union Commerce Minister Piyush Goyal noted that India recorded double-digit growth in merchandise exports in the first fourteen days of February.
Highlighting India’s expanding global trade footprint, he stated:
India has sealed nine Free Trade Agreements (FTAs) in the recent past.
Nearly 70% of global GDP and two-thirds of global trade are now accessible to Indian exporters.
This includes the first tranche of the bilateral trade agreement with the United States.
These developments reflect the government’s broader push to expand market access and strengthen India’s export competitiveness.
How the New EPM Interventions Address MSME Export Challenges
The seven interventions collectively aim to resolve structural challenges faced by MSMEs:
Challenge | Intervention Response |
High cost of capital | Interest subvention of 2.75% and guarantee coverage up to 90% |
Limited trade finance instruments | Export factoring and structured credit facilities |
Compliance burdens | TRACE support for TIC requirements |
Logistics disadvantages | FLOW and LIFT interventions |
Market access barriers | Support for emerging export opportunities and INSIGHT |
By integrating financial and non-financial support, the Export Promotion Mission is positioned as a comprehensive reform to enhance MSME participation in global trade.
With a financial outlay of ₹25,060 crore over six years, the Export Promotion Mission represents a major structural push to transform India’s MSME export ecosystem.
The newly launched seven interventions strengthen working capital access, reduce compliance burdens, support logistics infrastructure, and expand global market reach.
As India deepens trade ties through FTAs and expands access to global markets covering nearly 70% of global GDP, these measures are expected to play a critical role in driving export growth and positioning MSMEs as key contributors to India’s global trade ambitions.
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