The Government of India has unveiled a fresh set of measures under its ambitious Export Promotion Mission (EPM), aimed at strengthening the export capabilities of micro, small and medium enterprises (MSMEs) and enhancing their global competitiveness.
Launched by Union Commerce and Industry Minister Piyush Goyal, the new interventions form part of the ₹25,000-crore Export Promotion Mission announced in the Union Budget 2025–26. The initiative seeks to address critical bottlenecks faced by MSME exporters, including high financing costs, logistics constraints, compliance challenges and limited access to international markets.
Seven Key Interventions
The government has rolled out seven targeted steps focusing on credit access, logistics efficiency and export readiness:
1. Interest Subvention on Export Factoring:
MSMEs will receive a 2.75% interest subvention on export factoring, capped annually, to improve working capital availability and ease liquidity pressures.
2. Direct E-Commerce Credit Facility:
A structured credit scheme with partial credit guarantees has been introduced to support small exporters operating through digital and e-commerce platforms.
3. FLOW Initiative (Facilitating Logistics, Overseas Warehousing & Fulfilment):
This scheme aims to help MSMEs establish overseas warehousing and distribution networks, reducing delivery timelines and improving market responsiveness.
4. LIFT Scheme (Logistics Interventions for Freight & Transport):
Eligible exporters will receive partial reimbursement on freight costs, helping offset geographic disadvantages and rising logistics expenses.
5. INSIGHT Programme (Integrated Support for Trade Intelligence & Facilitation):
Designed to enhance export preparedness, the programme will provide trade intelligence, capacity building and district-level facilitation support.
Officials said that with these additions, most components under the Export Promotion Mission are now operational, signaling a strong push toward achieving India’s long-term export growth targets.
Strengthening MSME Competitiveness
MSMEs account for a significant share of India’s merchandise exports and play a vital role in employment generation. However, limited access to affordable finance, complex compliance requirements and high freight costs have often constrained their global expansion.
The new measures are expected to reduce transaction costs, improve access to trade finance and support digital exporters—especially those leveraging cross-border e-commerce channels. Industry stakeholders have welcomed the move, describing it as a timely intervention to help small businesses navigate evolving global trade dynamics.
The Export Promotion Mission is being implemented in coordination with the Department of Commerce, the Ministry of MSME and the Directorate General of Foreign Trade (DGFT). The government aims to deepen India’s integration into global value chains and expand market access for small enterprises across sectors.
With global trade conditions becoming increasingly competitive, the latest steps underline the Centre’s commitment to positioning Indian MSMEs as key drivers of export-led growth.
