Why in news?
The Union Cabinet, chaired by the Prime Minister, approved the Export Promotion Mission (EPM) in November 2025. Announced in the Union Budget 2025–26, the mission aims to strengthen India’s export competitiveness, especially for micro, small and medium enterprises (MSMEs), first‑time exporters and labour‑intensive sectors. The approval allocates ₹25,060 crore for the programme over the period FY 2025‑26 to FY 2030‑31 and consolidates several existing export schemes into one coherent framework.
Background
India currently runs multiple schemes to promote exports, such as the Interest Equalisation Scheme (IES), which subsidises interest rates on export credit, and the Market Access Initiative (MAI), which funds participation in trade fairs and market studies. However, these programmes operate separately, leading to overlaps and uneven support. The EPM brings them under a single outcome‑oriented structure that can adapt quickly to global trade shifts.
Features
- Comprehensive framework: The mission offers a flexible and digital platform for exporters, combining financial and non‑financial support.
- Funding and duration: The government will spend ₹25,060 crore from FY 2025‑26 to FY 2030‑31, including ₹20,000 crore for expanding the Credit Guarantee Scheme for exporters.
- Consolidation: Key export schemes like IES and MAI will be merged into the EPM, streamlining access and monitoring.
- Collaborative governance: The programme involves the Department of Commerce, Ministry of MSME, Ministry of Finance, export promotion councils, financial institutions and state governments. The Directorate General of Foreign Trade (DGFT) will implement the scheme.
- Priority sectors: Additional support will target industries hit by global tariff hikes, including textiles, leather, gems & jewellery, engineering goods and marine products.
Sub‑schemes
- Niryat Protsahan: Aims to improve access to affordable trade finance for MSMEs through interest subvention, export factoring, collateral guarantees, credit cards for e‑commerce exporters and credit enhancement for entering new markets.
- Niryat Disha: Provides non‑financial assistance such as export quality and compliance support, help with international branding and packaging, participation in trade fairs, export warehousing, logistics reimbursements, trade intelligence and capacity‑building.
Significance
- Ease of doing exports: A single, digital‑first system reduces paperwork and simplifies procedures for small businesses entering global markets.
- Job creation: By boosting labour‑intensive sectors and supporting MSMEs, the mission could generate employment in manufacturing, logistics and allied services.
- Resilience to trade shocks: Consolidated schemes can quickly reallocate resources to sectors hit by tariff changes or geopolitical disruptions, helping exporters remain competitive.
- Progress towards targets: Enhanced export performance supports the government’s ambition of achieving US$1 trillion in goods exports by the early 2030s.
Sources: Economic Times, Press Information Bureau