India’s Union Cabinet, chaired by PM Narendra Modi, approved a ₹45,060 crore multi-pronged package on November 12, 2025, to fortify the export sector against global headwinds like US tariff threats, geopolitical tensions, and supply chain disruptions. This comes as India’s FY25 exports grew 5-7% YoY but face risks from protectionism. The initiative aligns with the $1 trillion merchandise + services export goal by 2030, emphasizing MSMEs (which contribute 45% of exports) and non-traditional regions.
Total Outlay: Approve ₹45,060 crore.
- Export Promotion Mission (EPM): ₹25,060 crore (core component).
- Credit Guarantee Scheme for Exporters (CGSE): ₹20,000 crore (top-up to existing scheme).
Export Promotion Mission (EPM): Key Features
- Duration: 6 years (FY 2025–26 to FY 2030–31).
- Oversight: Directorate General of Foreign Trade (DGFT) under Ministry of Commerce & Industry, with inter-ministerial coordination (MSME, Finance) and state/export council involvement.
- Shift from Existing Schemes: Merges/expands Interest Equalisation Scheme (IES), Market Access Initiative (MAI), and others into a unified, digital platform for faster disbursals and outcome tracking via AI-driven dashboards.
Two Pillars:
Niryat Protsahan (Incentives): Financial aids including:
- Interest subvention up to 3-5% on export credit.
- Collateral-free loans/guarantees for MSMEs (up to ₹5 crore per unit).
- Export factoring for quick payments; e-commerce credit cards for SMEs.
- Market entry credits for new geographies (e.g., Africa, Latin America).
Niryat Disha (Guidance): Non-financial support:
- Reimbursements for certifications (ISO, HACCP), branding/packaging.
- Subsidies for trade fairs, buyer-seller meets, and digital marketing.
- Logistics aid: 50% inland transport costs; warehousing in 10 key hubs.
- Capacity building: Training for 5 lakh exporters; trade intel via apps.
Target Sectors: Labor-intensive like textiles, leather, gems/jewellery, engineering, marine products, and agri (focus on 500+ districts with <₹100 cr exports).
Digital Backbone: Single-window portal (Niryat.gov.in) for applications, with blockchain for transparency.
Credit Guarantee Scheme (CGSE) Enhancements
Corpus:
- Additional ₹20,000 crore, enabling 100% guarantee cover on bank loans to exporters.
- Eligibility: MSMEs/first-time exporters; loans up to ₹20 crore/unit for working capital/export finance.
- Manager: National Credit Guarantee Trustee Company Ltd (NCGTC).
- Validity: Extended to March 31, 2026; reduces NPA risks for banks, improving credit flow.
- Impact: Expected to unlock ₹1-1.5 lakh crore in export credit, cutting borrowing costs by 1-2%.
Expected Outcomes & Benefits
- Economic: 10-15% export growth boost; 20-25 lakh jobs in manufacturing/logistics.
- Inclusivity: 60% funds for women-led/SC/ST enterprises; promotes diversification from China+1 strategy.
- Risk Mitigation: Shields against 10-60% US tariffs; enhances competitiveness via lower compliance/logistics costs (target: reduce by 20%).
- Monitoring: Annual reviews; KPIs like export value/district, MSME participation.
This package embodies ‘Aatmanirbhar Bharat’ by fostering self-reliance through global integration. Official gazette notification expected within a week; exporters can register via DGFT portal from Dec 2025. For queries, contact commerce.gov.in.