₹25K crore export push clears Cabinet hurdle, implementation next

EPM to aid MSMEs with trade finance, market access; IES to be revamped

A day after the Union Cabinet approved the ₹25,060 crore Export Promotion Mission (EPM), government officials said the immediate focus would be on setting up the implementation architecture and finalising detailed procedures for schemes aimed at supporting exporters. 

While finalising the guidelines may take two to three months, the government will, in the meantime, prioritise clearing arrears of around ₹300 crore under the Market Access Initiative scheme and intensify buyer-seller meets to help diversify export markets.

The Interest Equalisation Scheme (IES), which was not extended beyond December 31, 2024, will be reintroduced in a revamped form, in line with contemporary trade needs.  

Only a select few sectors will be eligible for benefits, with the scheme largely targeted at micro, small and medium enterprises (MSMEs), rather than being a “free-for-all” programme, a senior government official told Business Standard.

 

“Now that Cabinet approval has been received, the next step is to put together the implementation architecture. All schemes will be operated through a unified digital platform — Trade Connect. Exporters seeking benefits under the EPM will be given a unique registration,” the official said. 

“We need to make a broad assessment of the outlay for each scheme. Detailed procedures will be notified in the next two to three months,” the official added. 

On Wednesday, the Cabinet approved the EPM for six years to strengthen India’s export competitiveness and support first-time exporters and labour-intensive sectors such as textile, leather, gems and jewellery, engineering goods, and marine product grappling with challenges following the imposition of a 50 per cent tariff by the US. 

The EPM will be implemented through two sub-schemes — Niryat Protsahan, worth ₹10,401 crore, which will provide trade finance support, and Niryat Disha, worth ₹14,659 crore, aimed at driving international market access. 

Niryat Protsahan will focus on improving access to affordable trade finance for MSMEs through instruments such as interest subvention, export factoring, collateral guarantees, credit cards for e-commerce exporters, and credit enhancement support for diversification into new markets. 

Niryat Disha will focus on non-financial enablers that enhance market readiness and competitiveness — including export quality and compliance support, assistance for international branding, packaging, and participation in trade fairs, as well as export warehousing, logistics, inland transport reimbursements, and trade intelligence and capacity-building initiatives, according to an official statement. 

Exporters said they are awaiting clarity from the government on the rules and guidelines for the schemes. “Since these schemes will be in place for six years, they will help exporters plan well in advance and provide continuity and policy stability,” said Ajay Sahai, director-general and chief executive officer of the Federation of Indian Export Organisations. 

According to the Delhi-based think tank Global Trade Research Initiative (GTRI), although announced in February, the EPM remains a broad framework and now needs to be translated into detailed schemes specifying eligibility, processes, and disbursement rules.  

A new online system must also be developed, which may take several months before exporters begin receiving benefits.

Funding is another concern. “The mission’s total outlay of ₹25,060 crore over six years amounts to less than ₹4,200 crore per year. Last year alone, the IES cost more than ₹3,500 crore, leaving very limited funds for activities such as branding, packaging, trade fairs, compliance, and logistics,” GTRI said in a report on Thursday.