Export Promotion Mission
India is set to launch a Rs 25,000 crore Export Promotion Mission (EPM) from 2025 to 2031. This flagship initiative aims to support exporters amid rising global trade challenges, including the recent hike in US tariffs on Indian goods. The mission focuses on easing credit access and enhancing export capabilities, especially for micro, small, and medium enterprises (MSMEs).
Context and Objectives
The EPM was announced in the Union Budget 2025-26 to ensure broad-based, inclusive, and sustainable export growth. It seeks to address key bottlenecks that Indian exporters face. The mission intends to shield exporters from uncertainties such as the US doubling tariffs on Indian imports to 50% from August 2025. This tariff hike affects sectors like textiles, chemicals, leather, and footwear.
Structure and Implementation
The mission will operate through two main sub-schemes – Niryat Protsahan and Niryat Disha. Niryat Protsahan, with over Rs 10,000 crore, focuses on financial support, including interest equalisation and alternative trade finance. It also plans to introduce a credit card for e-commerce exporters. Niryat Disha, with over Rs 14,500 crore, aims at export quality compliance, overseas market development, branding, warehousing, logistics, and capacity building.
Collaborative Framework
The EPM involves multiple ministries and stakeholders. Key participants include the Department of Commerce, Ministry of MSME, Ministry of Finance, Exim Bank, Export Credit Guarantee Corporation, Credit Guarantee Fund Trust for Micro and Small Enterprises, National Credit Guarantee Trustee Company, export promotion councils, commodity boards, industry associations, and state governments. This collaboration aims to create a robust support system for exporters.
Government Response to US Tariffs
The government is accelerating the mission’s rollout to help exporters manage liquidity issues caused by the tariff increase. Finance Minister Nirmala Sitharaman held an inter-ministerial meeting to discuss support measures. The government is actively engaging with industry representatives to implement effective solutions. The focus is on creating resilient supply chains and diversifying export destinations.
Export Diversification Strategy
India plans targeted outreach to 40 countries, including Australia, Canada, Germany, Japan, the UK, and the UAE, to diversify export markets. This approach aims to position India as a reliable supplier of quality and sustainable products. Export Promotion Councils will play a vital role in this diversification effort, helping Indian exporters reduce dependence on the US market.
Recent Export Trends
India’s exports rebounded by 7.29% in July 2025 to USD 37.24 billion after two months of decline. However, the trade deficit widened to an eight-month high of USD 27.35 billion. Between April and July 2025-26, exports rose by 3.07% to USD 149.2 billion, while imports increased by 5.36% to USD 244.01 billion. The government’s support measures aim to sustain this export momentum despite external challenges.
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