Key Highlights

• Government approves ₹25,060 crore Export Promotion Mission to boost trade competitiveness.

• ₹20,000 crore Credit Guarantee Scheme for Exporters launched to provide collateral-free loans.

• Initiative aims to strengthen MSME exporters and improve working capital access.

• Focus on export infrastructure, trade facilitation, and compliance simplification.

• Expected to enhance India’s role in global value chains by FY26.

India Steps Up Its Export Ambition

In a major policy move, the central government has cleared the Export Promotion Mission (EPM) worth ₹25,060 crore, designed to strengthen India’s export ecosystem and trade competitiveness.

Alongside this, an additional ₹20,000 crore has been allocated under the Credit Guarantee Scheme for Exporters, aimed at providing collateral-free credit to businesses engaged in international trade.

These decisions come amid challenging global conditions marked by uneven demand, rising financing costs, and supply chain disruptions. Together, they represent a strategic effort to ensure Indian exporters - particularly MSMEs - have the liquidity and support needed to compete effectively on the global stage.

What the Measures Aim to Achieve

Stronger Liquidity Support

The new credit guarantee framework enables exporters, especially small and medium enterprises, to access collateral-free loans, removing one of the biggest financial barriers to scaling operations.

Boost to Export Capacity

The Export Promotion Mission focuses on enhancing infrastructure, export clusters, and trade facilitation, while simplifying compliance and modernizing value chains to support long-term competitiveness.

Lower Financing Risks

Government-backed guarantees will encourage banks to extend more loans to exporters, thereby reducing financing risks and improving working capital availability.

Enhanced Global Competitiveness

With better access to funds and improved infrastructure, exporters can explore new international markets, minimize shipment delays, and align with global quality and sustainability standards.

Sectoral Impact

• MSME Exporters:Expected to gain the most from easier credit access and reduced capital pressure, enabling expansion into new markets.

• Manufacturing, Textiles & Engineering Goods:Likely to see increased export capacity as financing and logistical constraints ease.

• Services Exporters:Will benefit from digital trade facilitation and improved ease of doing business.

• Agri & Processed Foods:Could experience stronger growth through better logistics, certification support, and quality infrastructure.

Broader Economic Context

India’s export growth has been mixed in recent quarters due to weak global demand and volatile commodity trends. However, key sectors such as electronics, pharmaceuticals, and services have remained resilient.

The government’s twin policy initiatives are designed to push India closer to its long-term goal of becoming a reliable and competitive global export hub by FY26. These steps align with the broader vision of enhancing manufacturing capacity and supporting employment-intensive sectors.

Final Word

The approval of the ₹25,060 crore Export Promotion Mission and the ₹20,000 crore Credit Guarantee Scheme for Exporters marks a significant milestone in India’s export policy.

By addressing liquidity challenges, encouraging bank lending, and strengthening export infrastructure, the government aims to build a more dynamic and resilient export ecosystem. These initiatives are expected to energize India’s trade performance, particularly for MSMEs and manufacturing-driven industries, setting the stage for sustained growth in global markets.

Sources

Ministry of Commerce

Government Cabinet Approval Note

Export Promotion Mission Framework Document