Context:

The Government of India has unveiled two additional credit-linked interventions under the Export Promotion Mission (EPM) to improve access to affordable finance for Indian exporters and strengthen the country’s competitiveness in global trade.

About the Export Promotion Mission (EPM):

• • • The Export Promotion Mission (EPM) is a flagship initiative aimed at creating a comprehensive, digitally driven export promotion system to address structural bottlenecks in India’s export ecosystem.
    • It replaces multiple fragmented schemes with a single, outcome-based and adaptive mechanism, enabling swift responses to global trade challenges and the evolving needs of exporters.
    • EPM has a total outlay of ₹25,060 crore for the period FY 2025–26 to FY 2030–31.
    • The mission places special emphasis on supporting micro, small and medium enterprises (MSMEs), first-time exporters, and labour-intensive sectors such as textiles, leather, gems and jewellery, engineering goods, and marine products.
    • The government has described the initiative as a strategic shift from a web of standalone schemes towards a unified, outcome-based framework to help exporters adapt to changing global trade dynamics.

Sub-Schemes under EPM:

EPM comprises two integrated sub-schemes:

·        Niryat Protsahan — focuses on improving access to affordable trade finance through interest subvention, collateral support, export factoring, and other credit enhancement measures.

·        Niryat Disha — targets non-financial enablers such as export quality support, participation in international trade fairs, global branding, logistics facilitation, and export readiness.

New Credit-Linked Interventions:

1. Interest Subvention Scheme

• • • A ₹5,181 crore interest subvention scheme has been introduced to reduce the cost of export financing.
    • It provides exporters with an interest subsidy on pre-shipment and post-shipment rupee export credit extended by lending institutions.
    • The measure aims to lower borrowing costs, improve working capital availability, and support exporters, particularly MSMEs facing tight global financing conditions.

2. Collateral Support for Export Credit

• • • The second intervention earmarks ₹2,114 crore for collateral support, enabling exporters to access credit guarantee coverage to overcome traditional collateral requirements.
    • Implemented in partnership with the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), it offers guarantee coverage of up to 85% for micro and small exporters and 65% for medium exporters.
    • This initiative seeks to ease access to finance for exporters who otherwise face difficulties due to the absence of adequate collateral.

Significance of the Measures:

• • Improved Access to Export Finance: Reduces high borrowing costs and collateral constraints, particularly for MSME exporters.
  • Support to Small and First-Time Exporters: Encourages broader participation in global trade and diversification of India’s export base.
  • Digitally Driven, Outcome-Based Approach: Enhances transparency, efficiency, and ease of access by replacing fragmented schemes with a unified digital framework.

Conclusion:

The introduction of two new credit-linked interventions under the Export Promotion Mission strengthens India’s export ecosystem by improving access to affordable finance, empowering MSMEs and first-time exporters, and enabling Indian exporters to better navigate evolving global trade challenges.