Indian Economy News

Government undertakes many initiatives to support MSMEs and boost their competitiveness in the global value chain

The Government of India has undertaken several initiatives to strengthen Micro, Small, and Medium Enterprises (MSMEs) and enhance their competitiveness in global value chains. A key step is the launch of the Export Promotion Mission (EPM), which will provide a comprehensive and digitally driven framework for export promotion with a total outlay of Rs. 25,060 crore (US$ 2.72 billion) for the period FY26 to FY31. The mission aims to consolidate multiple fragmented schemes into a unified, outcome-based mechanism capable of responding to evolving global trade challenges. It will operate through two integrated sub-schemes: NIRYAT PROTSAHAN, which focuses on improving access to affordable trade finance through instruments such as interest subvention, export factoring, collateral guarantees, and credit cards for e-commerce exporters, and NIRYAT DISHA, which supports market readiness through assistance for export quality compliance, international branding, packaging, participation in trade fairs, logistics, and trade intelligence.

In addition, the government has approved the Credit Guarantee Scheme for Exporters, which will provide 100% credit guarantee coverage through the National Credit Guarantee Trustee Company Limited (NCGTC) to lending institutions for extending additional collateral-free credit facilities up to Rs. 20,000 crore (US$ 2.17 billion) to eligible exporters, including MSMEs. This initiative is expected to improve liquidity, strengthen exporters capacity, and support diversification into new and emerging markets. The International Cooperation Scheme will further help MSMEs build global capabilities by enabling participation in international exhibitions, buyer-seller meets, and trade events. Moreover, recent GST rationalisation measures are expected to strengthen domestic supply chains in sectors such as automobiles, textiles, food processing, logistics, and handicrafts by reducing costs of raw materials and services, thereby encouraging MSMEs and start-ups to expand operations, invest in innovation, and compete globally.

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