Indian Economy News

Cabinet approves Export Promotion Mission to strengthen India’s export ecosystem with an outlay of US$ 2.83 billion

The Union Cabinet has approved the Export Promotion Mission (EPM) with a total outlay of Rs. 25,060 crore (US$ 2.83 billion) from FY26 to FY31, representing a strategic shift from fragmented schemes to a unified, outcome-based export framework. The mission operates through two integrated sub-schemes: NIRYAT PROTSAHAN, which provides financial support through interest subvention, export factoring, collateral guarantees, credit cards for e-commerce exporters, and credit enhancement for market diversification; and NIRYAT DISHA, which offers non-financial enablers including export quality and compliance assistance, international branding and packaging support, trade fair participation, warehousing and logistics, inland transport reimbursement, and capacity-building initiatives. EPM consolidates existing programmes such as the Interest Equalisation Scheme (IES) and Market Access Initiative (MAI) into a digitally-driven mechanism responsive to global trade challenges. The Directorate General of Foreign Trade (DGFT) will serve as the implementing agency, managing all processes from application to disbursal through a dedicated digital platform integrated with existing trade systems.

The mission prioritises support for sectors impacted by recent global tariff escalations, including textiles, leather, gems & jewellery, engineering goods, and marine products, while specifically targeting MSMEs, first-time exporters, and labour-intensive industries. EPM addresses structural constraints such as limited and expensive trade finance, high compliance costs, inadequate branding, and logistical disadvantages faced by interior and low-export-intensity regions. Expected outcomes include facilitating affordable trade finance access for MSMEs, enhancing export readiness through certification support, improving market visibility for Indian products, boosting exports from non-traditional districts, and generating employment across manufacturing and logistics. By creating an inclusive, technology-enabled export ecosystem, EPM aligns with the vision of Viksit Bharat @2047 and aims to strengthen India's global trade competitiveness while sustaining export orders and protecting jobs through targeted interventions.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.