Export Promotion Mission and key interventions

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Picture Courtesy: PIB

Context:

The Union Minister of Commerce and Industry, Piyush Goyal, launched seven new interventions under the Export Promotion Mission (EPM) to strengthen Micro, Small and Medium Enterprises (MSMEs) and enhance India’s global export competitiveness.

Export Promotion Mission (EPM):

The Export Promotion Mission (EPM) is a flagship initiative announced in the Union Budget 2025–26 to enhance India’s export performance and global competitiveness. The Mission is designed to support MSMEs, new exporters, and labour-intensive industries through a comprehensive, technology-enabled and outcome-oriented framework.

Key features of the mission:

• Integrated and outcome-based approach: EPM replaces multiple fragmented export schemes with a single unified framework focused on measurable outcomes and quick policy responsiveness to changing global trade conditions.
• Digital and flexible architecture: A technology-driven system ensures transparency, faster approvals, real-time monitoring and ease of access for exporters.
• Consolidation of existing schemes: The Mission integrates major export support programmes such as Interest Equalisation Scheme (IES) and Market Access Initiative (MAI). This alignment helps reduce overlap and improves policy efficiency.

Priority Sectors: Focused assistance will be provided to sectors facing global trade pressures and tariff challenges, such as:

• Textiles and apparel
• Leather and footwear
• Gems and jewellery
• Engineering goods
• Marine products

Sub schemes under Export Promotion Mission (EPM):

Niryat Protsahan (Financial Enablers): Niryat Protsahan is designed to improve access to affordable and diversified trade finance for MSMEs so that financial constraints do not limit their participation in global markets. Under this component, exporters receive interest subvention on pre- and post-shipment export credit, which reduces the cost of borrowing and improves working capital availability. The scheme also promotes export factoring, enabling MSMEs to convert receivables into immediate liquidity and manage cash flow efficiently.

To address the problem of limited collateral, the programme provides collateral-free or credit-guaranteed loan facilities, thereby encouraging banks to extend credit to small exporters. Recognising the growing role of digital trade, special credit support is extended to e-commerce exporters to help them expand through online global platforms. In addition, the scheme offers financial assistance and risk-sharing support for entering new and emerging markets, enabling exporters to diversify beyond traditional destinations and reduce market concentration risks.

Niryat Disha (Ecosystem and Market Support): Niryat Disha focuses on strengthening the non-financial ecosystem required to enhance export competitiveness and market readiness. The component provides support for meeting international quality standards, including assistance for testing, inspection and certification, which helps exporters comply with regulatory requirements in foreign markets. It also promotes global branding, improved packaging and better product positioning, enabling Indian goods to compete more effectively in international markets.

To increase market exposure, exporters are supported in participating in international trade fairs, buyer-seller meets and exhibitions. The scheme further facilitates access to overseas warehousing and logistics infrastructure, which improves delivery efficiency and reduces turnaround time. To address regional disadvantages, assistance is provided for inland transport and freight costs, especially for exporters located in interior and low-export districts.

In addition, Niryat Disha strengthens long-term capacity through trade intelligence systems, market information services, exporter training and cluster-level capacity-building initiatives, thereby improving strategic decision-making and export preparedness.

Key interventions under Export Promotion Mission (EPM):

Niryat Protsahan: Financial Enablers

Support for Alternative Trade Instruments (Export Factoring): This intervention encourages MSMEs to use export factoring as a means to improve liquidity by providing interest subvention of 2.75% on factoring charges for eligible transactions, with financial support limited to ₹50 lakh per MSME per year. Export factoring is a financing arrangement where an exporter assigns its overseas receivables to a specialised financial institution (factor) at a discounted value in exchange for immediate funds, thereby reducing the waiting period for payment from foreign buyers.

Credit Support for E-Commerce Exporters: To strengthen digital export channels, two dedicated credit windows have been introduced. The Direct E-Commerce Credit Facility offers loans up to ₹50 lakh with 90% credit guarantee coverage, while the Overseas Inventory Credit Facility provides financing up to ₹5 crore with 75% guarantee coverage for exporters maintaining stock in foreign markets. Both facilities are eligible for 2.75% interest subvention, subject to a maximum annual benefit of ₹15 lakh per exporter.

Support for Emerging Export Opportunities: This measure assists exporters in expanding into new or relatively risky markets through structured credit arrangements and risk-sharing mechanisms. The objective is to ease financial uncertainty, improve cash flow stability and encourage market diversification.

Niryat Disha: Non-Financial Enablers

Trade Regulations, Accreditation and Compliance Enablement (TRACE): TRACE helps exporters meet international regulatory standards related to testing, inspection and certification (TIC). It offers reimbursement of 60% of eligible costs for items under the Positive List and 75% for the Priority Positive List, subject to an annual ceiling of ₹25 lakh per Importer-Exporter Code (IEC).

Facilitating Logistics, Overseas Warehousing and Fulfilment (FLOW): This intervention supports the establishment and utilisation of overseas warehousing and fulfilment infrastructure, including facilities linked to global e-commerce distribution networks. Financial assistance of up to 30% of the approved project cost is available for a period of up to three years, helping exporters reduce delivery time and improve market responsiveness.

Logistics Interventions for Freight and Transport (LIFT): LIFT addresses cost disadvantages faced by exporters located in interior and low-export-intensity districts by providing reimbursement of up to 30% of eligible freight expenses, with a maximum limit of ₹20 lakh per IEC per financial year.

Integrated Support for Trade Intelligence and Facilitation (INSIGHT): INSIGHT strengthens exporter preparedness through market intelligence, training, and district-level export facilitation under the Districts as Export Hubs initiative. Financial assistance is available up to 50% of project cost, while proposals from Central and State government bodies and Indian Missions abroad may receive full funding (up to 100%) within prescribed limits.

Importance of the Interventions under Export Promotion Mission (EPM):

• Expanding MSME contribution to exports: MSMEs account for about 30% of India’s GDP and nearly 45% of total exports (Ministry of MSME). However, limited access to affordable finance has constrained their global participation. Interest subvention, export factoring and credit guarantees reduce borrowing costs and improve working capital availability, enabling small firms to scale up exports.

• Reducing compliance and market entry barriers: According to the World Bank’s trade competitiveness assessments, compliance with international standards is a major cost burden for small exporters. Support for testing, inspection and certification under TRACE lowers entry barriers and improves acceptance of Indian products in regulated markets such as the EU and the US.

• Addressing logistics disadvantages: India’s logistics cost is estimated at 13–14% of GDP, compared to 8–9% in developed economies (NITI Aayog). Interventions such as overseas warehousing, freight reimbursement and fulfilment support help reduce transit time and logistics expenses, improving price competitiveness.

• Promoting export diversification and resilience: India’s exports remain concentrated in a few markets, with the top five destinations accounting for over 40% of total exports (DGFT data). Risk-sharing mechanisms for emerging markets encourage geographic diversification, reducing vulnerability to global demand shocks and protectionist measures.

• Strengthening regional and inclusive growth: The Districts as Export Hubs approach supports exports from low-export and interior districts, helping integrate local products into global value chains. This aligns with the objective of balanced regional development and employment generation in labour-intensive sectors such as textiles, leather and marine products.
• Supporting digital trade expansion: Global cross-border e-commerce is projected to exceed $7 trillion by 2030 (UNCTAD estimates). Dedicated credit support for e-commerce exporters enables Indian MSMEs and startups to tap into this rapidly growing segment.

Conclusion:

The Export Promotion Mission (EPM) and its targeted interventions represent a strategic shift toward a unified, digital, and outcome-oriented export ecosystem. By reducing the cost of finance, improving compliance readiness, strengthening logistics support, and enabling access to new markets, the initiative addresses key structural barriers faced by MSMEs. Overall, the Mission is expected to enhance export competitiveness, promote inclusive regional growth, and strengthen India’s integration into global value chains.

Source: PIB