Budget FY26: Govt to launch export promotion mission worth Rs 2,250 crore

Finance Minister Nirmala Sitharaman on Saturday announced an Export Promotion Mission with an allocation of Rs 2,250 crore to enhance India’s export competitiveness at a time when the world is grappling with rising protectionism and global uncertainty.  Under this mission, the department of commerce, micro, small and medium enterprises (MSME), and the finance ministry will set export-related targets for various sectors. Additionally, support measures will be introduced for MSMEs to help them tackle non-tariff barriers in overseas markets.  The support for MSMEs comes at a crucial time when Indian exporters are set to be adversely affected by climate-change-related non-tariff measures introduced by the European Union (EU), such as the Carbon Border Adjustment Mechanism (CBAM) and the EU Deforestation Regulation (EUDR).  “We will set up an Export Promotion Mission, with sectoral and ministerial targets, driven jointly by the ministries of commerce, MSME, and finance. It will facilitate easy access to export credit, cross-border factoring support, and assistance for MSMEs in tackling non-tariff measures in overseas markets,” Sitharaman said while announcing the Union Budget 2025-26.  During the first nine months of the current financial year, India exported goods worth $321.37 billion, reflecting a 1.6 per cent increase compared to the same period a year ago. Including services, export growth stood at 6 per cent, reaching $602.64 billion, according to commerce department data. The government has set a target of $800 billion for goods and services exports in the current financial year.  Despite requests from the commerce department and exporters, the finance ministry did not extend the interest equalisation scheme (IES), which primarily benefits MSMEs. According to the Budget document, the revised estimate for the scheme stands at Rs 2,250 crore. Allocation for the Market Access Initiative (MAI) scheme has also been removed.  Sitharaman further announced the establishment of a National Manufacturing Mission, covering small, medium, and large industries, to advance the Make in India initiative. This will be achieved through policy support, execution roadmaps, and a governance and monitoring framework for central ministries and states.  “The mission’s mandate will focus on five key areas—ease and cost of doing business, a future-ready workforce for in-demand jobs, a dynamic MSME sector, access to technology, and the production of high-quality products,” according to the Budget document.