By: The Trek News Desk
Facing the heat of steep 50% U.S. import tariffs that have hit Indian exporters hard, the Union Cabinet on Wednesday cleared a massive ₹25,060 crore Export Promotion Mission (EPM) aimed at boosting outbound shipments and helping small exporters compete globally.
The six-year mission, chaired by Prime Minister Narendra Modi, also includes an additional ₹20,000 crore credit facility for exporters, especially MSMEs (Micro, Small and Medium Enterprises) struggling with liquidity amid tightening trade conditions.
Export Decline as Tariffs Bite: Shipments to U.S. Down 12%
The impact of the new American tariffs, effective from August 27, is already visible.
According to official data, India’s exports to the U.S. fell 12% in September, with engineering goods, which account for nearly a quarter of India’s total exports, dropping by 9.4%.
Following the China-U.S. trade agreement, India now faces the highest tariff levels in the world, making its goods less competitive in the American market.
EPM to Support Sectors Hit by Global Tariff Escalations
The newly approved Export Promotion Mission will prioritise sectors most affected by the global trade disruptions, including textiles, leather, gems and jewellery, engineering goods, and marine products.
Speaking at a press briefing, Railway Minister Ashwini Vaishnaw said the mission focuses on improving credit access and reducing financing costs for exporters, enabling smaller firms to tap new international markets.
Several countries have imposed strict standards to discourage imports. The mission will help Indian exporters tackle such non-tariff barriers, including compliance norms, certifications, and technical requirements, he said.
The government will also cover expenses related to logistics, branding, and packaging, empowering MSMEs to strengthen their global presence.
Implementation from FY 2025–26 to FY 2030–31
According to the Cabinet statement, the mission will run from 2025–26 to 2030–31, aiming to build a comprehensive, digital, and flexible framework for export promotion.
It will merge and modernise key existing programs, such as the Interest Equalisation Scheme and the Market Access Initiative, to better align with current trade realities.
Collateral-Free Credit to Boost Export Competitiveness
Under the newly approved Credit Guarantee Scheme for Exporters (CGSE), the National Credit Guarantee Trustee Company (NCGTC) will provide 100% coverage to banks and financial institutions that extend credit to exporters.
This move, covering loans worth up to ₹20,000 crore, is expected to improve liquidity and enhance exporters’ competitiveness in global markets.
“The initiative will make it easier for MSMEs to access collateral-free loans and continue business operations smoothly,” the official statement noted.
Textile Sector Sees Lifeline Amid U.S. Tariff Pain
The Confederation of Indian Textile Industry (CITI) welcomed the decision, calling it a timely intervention to help the textile and apparel sectors regain their global footing.
The U.S. remains India’s largest textile export market, contributing about 28% of the sector’s total revenue.
However, the steep tariffs have severely dented exports.
CITI’s data shows that in September 2025, textile exports fell 10.45%, while apparel exports declined 10.14% compared to the previous year.
Empowering MSME Exporters
S.C. Ralhan, President of the Federation of Indian Export Organisations (FIEO), said the mission combines financial and non-financial support into a single, responsive system.
“This initiative directly addresses the long-standing structural challenges facing Indian exporters, from limited access to finance and high compliance costs to weak branding and logistical inefficiencies,” Ralhan said.
He added that the mission will help sustain export momentum, safeguard employment, and promote diversification into emerging markets.
Gems and Jewellery Council Lauds the Move
The Gems and Jewellery Export Promotion Council (GJEPC) also hailed the Cabinet’s decision, noting that expanded support for interest subvention and trade fair participation will empower MSMEs and new exporters to expand their global outreach sustainably.
Source: News Agencies
