Why in the news?

  • The Government of India is trying to speed up the launch of export promotion mission to help exporters amidst confusions of US tariff of 50% on Indian imports.

Export Promotion Mission

  • What is it?: Announced in the Union Budget 2025‑26, Export Promotion Mission is a flagship initiative designed to foster broad-based, inclusive, and sustainable export growth from FY 2025 to FY 2031, moving beyond traditional strategies to address exporter challenges- particularly for MSMEs.
  • Implementing Agency: Department of Commerce, Ministry of Commerce & Industry in collaboration with Ministries of MSME and Finance, ensuring coordinated effort across financial, industrial, and export policies.
  • Objectives:
    • Address liquidity constraints and export finance by enhancing access to export credit, introducing cross-border factoring, and devising flexible trade finance tools.
    • Aid MSMEs in overcoming non-tariff barriers (NTBs) and enhancing global competitiveness.
    • Reinforce the global image of Indian exports through “Brand India” and support exporters via interest subsidy schemes, credit facilities, and trade assistance.
    • Promote districts as export hubs
  • Funding and Duration: Backed by a substantial support package of approximately ₹25,000 crore, earmarked to bolster exports over six financial years (2025–31).
  • Key Features:
    • Integration of Schemes: Brings together various existing schemes like RoDTEP (Remission of Duties and Taxes on Exported Products), RoSCTL, Interest Equalization Scheme, etc.
    • Districts as Export Hubs (DEH): Each district to identify niche products and create export action plans.
    • Digital Export Promotion: Leveraging e-commerce and digital platforms for global outreach.
    • Market Diversification: Expanding trade to Africa, Latin America, and ASEAN, reducing dependency on traditional markets.
    • Capacity Building: Training exporters, simplifying procedures, and ensuring ease of doing business.
  • Flagship Schemes:
    • Niryat Protsahan: Includes ~₹5,000 crore in interest equalisation support over six years, trade finance facilities like exporter credit cards, and other liquidity-enhancing mechanisms 
    • Niryat Disha: A newly introduced initiative.
  • Significance
    • Accelerates rollout in the wake of global trade challenges, such as heightened U.S. tariffs, providing timely support to trade corridors.
    • Acts as a safeguard and stimulus for exporters by encouraging export diversification, promoting new FTAs, and leveraging domestic demand—thus cushioning against geopolitical shocks.
    • Helps India achieve $1 trillion in merchandise exports by 2030 and reduce trade deficits with major economies.