The Centre may offer support measures worth about ₹25,000 crore to the country’s exporters over the next six years to insulate their trade from uncertainties and losses incurred due to US President Donald Trump’s tariffs.
This move, under the government’s Export Promotion Mission (EPM) which was announced in the budget, will be a shot in the arm for the export sector that fears tariff backlash.
“The main focus is on providing easy and affordable credit to the exporter community,” said government sources.
The US imposed a hefty 50 per cent tariff on Indian goods, escalating it from the initial 25 per cent. The higher tariffs are set to come into effect from August 27, 2025, and will hit sectors like textiles, chemicals, leather and footwear the hardest.
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The EPM is a collaborative framework that involves various departments and ministries, including the Ministry of Finance, the Department of Commerce, the Ministry of MSME, and others such as Exim Bank, ECGC (export credit guarantee corporation), CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises), NCGTC (National Credit Guarantee Trustee Company Ltd), export promotion councils, commodity boards, industry associations, and state governments.
While the commerce ministry awaits an approval of its export-support mission from the expenditure finance committee (EFC) of the finance ministry, the proposal will then be sent to the Union Cabinet for a final approval.
The flagship initiative announced in the Union Budget 2025-26, seeks to enable broad-based, inclusive, and sustainable export growth over the next six years (FY 2025-31) by exploring approaches beyond conventional mechanisms to address key bottlenecks faced by Indian exporters, especially MSMEs.
Sources say it is proposed to be implemented through two sub-schemes – Niryat Protsahan (over ₹10,000 crore) and Niryat Disha (over ₹14,500 crore).
Under the Niryat Protsahan scheme, the government is evaluating interest equalisation support worth over ₹5,000 crore for six financial years (2025-2031), support for alternative trade finance instruments, a credit card for e-commerce exporters, and other financing mechanisms to bridge liquidity gaps faced by exporters.
Under the Niryat Disha scheme, the proposed components include support for export quality compliance (about ₹4,000 crore), overseas market development (over ₹4,000 crore), branding, export warehousing and logistics, and capacity building to integrate more Indian enterprises into global value chains.
Snapping the two-month declining streak, India's exports rebounded by 7.29 per cent to USD 37.24 billion in July, while trade deficit widened to an eight-month high of USD 27.35 billion during the month.
During April-July 2025-26, exports increased by 3.07 per cent to USD 149.2 billion, while imports rose 5.36 per cent to USD 244.01 billion.
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