The long-awaited export promotion mission (EPM) may soon be announced with the Union Cabinet expected to take up the proposal for clearance next week, sources have said. The scheme is focused on providing financial and logistical support to exporters struggling to compete in the unpredictable global market and those hit hardest by the US tariffs.
“The inter-ministerial consultations are all done. There is more or less agreement on most issues, but the Cabinet has to take a call on a couple of sensitive matters such as resuming the interest equalisation scheme for exporters and its scope,” a source tracking the matter said.
₹2,250 crore outlay
Finance Minister Nirmala Sitharaman announced the EPM in the Union Budget 2025-26, with an outlay of ₹2,250 crore, to address challenges related to export credit accessibility, factoring for cross-border tradeand overcoming non-tariff barriers. The scheme aims to particularly support MSMEs.
“The annual outlay of the scheme is limited given its vast canvass. The Commerce Department is, however, hopeful that if the Cabinet decides to announce the EPM for a 3-5 year period, the outlay would be much more,” the source said.
The EPM will largely have two components. One component would be Niryat Protsahan (export promotion) where the focus would be on providing ample liquidity to exporters.
Measures such as the interest equalisation scheme, alternative financing options, credit card for e-commerce exporters and assistance for cross-border factoring are all under consideration. “It is the Union Cabinet that will take a call on export promotion schemes given the amount it wants to spend,” the source added.
With the government discontinuing the popular interest equalisation scheme from December 31 last year, there is a strong demand from exporters for its extension. The scheme provides interest subsidies on pre- and post-shipment export credit. “The Commerce Department has been for long trying to convince the Finance Ministry on the usefulness of the scheme as it lowers the cost of borrowing for exporters in India bringing it at par with competing countries. The Finance Ministry, however, has its reservations. It is the Union Cabinet which may now take a call,” the source said.
Export strategies
The second component of the EPM is Niryat Disha or export direction. The government seeks to extend measures to support exporters’ strategies for entering new overseas markets and participating in trade fairs, facilitate export logistics and overseas warehousing, provide funds for branding exports and assist exporters in complying with international quality standards and non-tariff barriers.
While the EPM was not planned with the US tariffs in mind, but it has been finetuned to give some support to labour-intensive sectors hit hardest by the 50 per cent tariffs imposed by Washington, the source added.
