Brief Context
Context Amid pressure on goods exports to the US due to high 50% tariffs, the Union Cabinet has approved a six-year Export Promotion Mission with an outlay of Rs 25,060 crore. Export Promotion Mission In the Union Budget for 2025-26, the Finance Minister announced an Export Promotion Mission. It would facilitate easy access to export credit, cross-border factoring support, and support to MSMEs to tackle non-tariff measures in overseas markets.
Source Content
Syllabus: GS3/Economy
Context
- Amid pressure on goods exports to the US due to high 50% tariffs, the Union Cabinet has approved a six-year Export Promotion Mission with an outlay of Rs 25,060 crore.
Export Promotion Mission
- In the Union Budget for 2025-26, the Finance Minister announced an Export Promotion Mission.
- It would facilitate easy access to export credit, cross-border factoring support, and support to MSMEs to tackle non-tariff measures in overseas markets.
- Ministries: Driven jointly by the Ministries of Commerce and Industry, the Ministry of Micro, Small, and Medium Enterprises, and the Ministry of Finance.
- Under EPM, priority support will be extended to sectors impacted by recent global tariff escalations, such as textiles, leather, gems & jewellery, engineering goods, and marine products.
- The Directorate General of Foreign Trade (DGFT) will act as the implementing agency, with all processes from application to disbursal.
- It will be managed through a dedicated digital platform integrated with existing trade systems.
Major Components of EPM
Financial Support
- Credit Guarantee Scheme for Exporters (CGSE): Provides 100% coverage by the National Credit Guarantee Trustee Company Ltd (NCGTC).
- For additional credit facilities up to ₹20,000 crore to eligible exporters (including MSMEs).
- Enables collateral-free credit, improving liquidity and competitiveness.
- Integration of Schemes: Interest Equalisation Scheme (interest subvention for exporters).
- Market Access Initiative (MAI) (support for trade fairs, market promotion).
- Both merged under a digitally driven EPM framework.
Non-Financial Support
- Addressing Non-Tariff Barriers (NTBs): Funding for compliance, certifications, and technical standards.
- Market Acquisition & Branding: Assistance for international exhibitions, packaging, and branding.
- Logistics Cost Reduction: Support for supply chain efficiency and trade facilitation.
The Mission is expected to:
- Facilitate access to affordable trade finance for MSMEs.
- Enhance export readiness through compliance and certification support.
- Improve market access and visibility for Indian products.
- Boost exports from non-traditional districts and sectors.
- Generate employment across manufacturing, logistics, and allied services.
Source: IE