Export Promotion Mission (EPM): Cabinet Approves Six-Year, ₹25,060 Crore Initiative to Strengthen India’s Export Competitiveness

• The Union Cabinet, has approved the Export Promotion Mission (EPM) — a major flagship initiative announced in the Union Budget 2025–26.
• With a total financial outlay of ₹25,060 crore for the period FY 2025–26 to FY 2030–31, EPM seeks to create a unified, digitally integrated, outcome-based export promotion mechanism, replacing the fragmented scheme-based approach that previously governed India’s export support architecture.

Why EPM? Background and Context

India’s exports have been under strain due to a combination of global tariff escalations, non-tariff barriers, rising compliance costs, logistics constraints, and finance bottlenecks.
A steep 50% tariff imposed by the United States effective August 27 has resulted in:

• 12% decline in overall shipments to the US (September data).
• 9.4% decline in engineering goods exports (which constitute nearly 25% of India’s exports).
• A sharp fall in textiles and apparel exports to the US (India’s largest market):
  • Textiles: −10.45%
  • Apparel: −10.14%
  • Combined fall: −10.34% YoY
• India’s textile and apparel exports to the US were nearly $11 billion in 2024–25.

These tariff shocks have pushed several SEZ units — especially those fully dependent on the US market — to request de-notification, as their exports have become uncompetitive.

SEZ performance data (FY 2025):

• Exports: $172 billion from 276 units
• Domestic sales: just 2% of total production
• Indian SEZs lag behind China’s SEZ model in productivity and competitiveness.

Mission Objectives

EPM aims to:

• Improve export competitiveness, especially for MSMEs and labour-intensive sectors.
• Strengthen trade finance accessibility.
• Enhance India’s ability to meet international standards and certifications.
• Improve export branding, market access, logistics, and participation in global value chains.
• Provide targeted support to sectors affected by recent global tariff escalations, including:
  • Textiles,
  • Leather,
  • Gems & jewellery,
  • Engineering goods,
  • Marine products.

Institutional Framework

EPM is anchored in a collaborative multi-ministerial structure involving:

• Department of Commerce
• Ministry of MSME
• Ministry of Finance
• Export Promotion Councils
• Commodity Boards
• Financial Institutions
• State Governments
• Industry associations

The Directorate General of Foreign Trade (DGFT) will serve as the primary implementing agency.

A key reform under EPM is the launch of a unified digital export-promotion platform, ensuring end-to-end digital processing — from application to verification, approval and disbursal.

Mission Design: Two Integrated Sub-Schemes

1. NIRYAT PROTSAHAN – Financial Support for MSMEs

This component addresses India’s major structural challenge: high-cost, limited-access trade finance.

It includes:

• Interest subvention
• Export factoring
• Collateral guarantees
• Credit cards for e-commerce exporters
• Credit enhancement for market diversification
• Financial support for accessing new geographies

2. NIRYAT DISHA – Non-Financial Market-Readiness and Competitiveness Support

This component resolves non-financial bottlenecks:

• Export quality and international compliance support
• Aid for branding, packaging, and international marketing
• Support for participation in trade fairs and exhibitions
• Warehousing and logistics assistance
• Inland transport reimbursements, especially for exporters in landlocked districts
• Trade intelligence, market insights, and capacity building

Integration of Existing Schemes

EPM merges two key export-support schemes:

• Interest Equalisation Scheme (IES)
• Market Access Initiative (MAI)

This streamlines policy implementation, improves monitoring, and aligns incentives with “atmanirbharta” and global trade demands.

Credit Guarantee Scheme for Exporters (CGSE): A Complementary Initiative

Approved alongside EPM, the Credit Guarantee Scheme for Exporters (CGSE) provides:

• ₹20,000 crore in additional collateral-free credit
• 100% guarantee by the National Credit Guarantee Trustee Company Limited (NCGTC)
• Support for both MSME and non-MSME exporters
• Oversight by a Management Committee chaired by the DFS Secretary

Objective:

• Boost liquidity
• Encourage market diversification
• Support job retention during tariff shocks
• Strengthen competitiveness of vulnerable sectors

Government’s Rationale and Expected Outcomes

Government highlighted that the Mission:

• Prioritises the availability and affordability of credit
• Focuses on MSME exporters to help them expand into new markets

Government noted that many countries are raising non-tariff barriers, imposing strict standards and certifications. EPM will subsidize these costs, helping Indian exporters comply with technical requirements.

Expected outcomes:

• Better access to affordable trade finance
• Improved export readiness through compliance support
• Stronger brand visibility for Indian goods
• Increased exports from non-traditional districts
• Higher employment across manufacturing, logistics, and services
• Reduced vulnerability to tariff and NTB shocks
• Integration of more Indian MSMEs into global value chains

The Export Promotion Mission (EPM) represents one of India’s most comprehensive export-promotion frameworks. By integrating financial and non-financial support, consolidating existing schemes, and addressing tariff, compliance, and logistics challenges, the Mission seeks to build a resilient, competitive, and diversified export ecosystem.