New export mission targets MSMEs with 12-point plan

India’s ₹2,250 crore Export Promotion Mission (EPM) aims to strengthen India’s exports, especially by supporting MSMEs. It includes 12 schemes under two categories: NIRYAT PROTSAHAN for trade finance and NIRYAT DISHA for market access. Key features include collateral-free credit, ‘interest’ support, branding, warehousing, and help with non-tariff measures. The mission also promotes factoring services to reduce reliance on banks and improve access to high-risk international markets.

The Commerce Ministry’s Export Promotion Mission (EPM) is a strategic initiative launched with an outlay of ₹2,250 crore to boost India’s exports, particularly by empowering Micro, Small, and Medium Enterprises (MSMEs). Announced   on February 1, the goal of the mission is to tap into emerging global markets, provide easier credit access, strengthen trade tools, and enhance branding and logistics support for small exporters.

On April 30, the Directorate General of Foreign Trade (DGFT) Ajay Bhadoo presented the mission’s framework to export promotion councils and stakeholders including officials from ECGC, EXIM bank, and the RBI. Feedback from these councils is currently being gathered before the finalization of the schemes. 

The Export Promotion Mission

The EPM comprises 12 components grouped under two major categories. The two broad categories of Export Promotion Mission are NIRYAT PROTSAHAN- Providing Trade Finance Support; and NIRYAT DISHA- Driving International Holistic Market Access Initiative.

1. NIRYAT PROTSAHAN – Trade Finance Support: This category focuses on improving access to affordable credit and financial instruments for MSMEs through six sub-schemes:

• Niryat Rin Vikas (NIRVIK): Aims to provide interest equalisation on export credit in INR at globally competitive rates for MSMEs and new exporters. The scheme includes a cap on interest subvention, a negative list of ineligible items (e.g., raw materials, low-value-add products), and annual benchmarking of interest rates against competitor countries. 

According to an official, “This will be achieved through the periodic notification of NIRVIK rates, which will be benchmarked against prevailing interest rates offered to exporters in countries that compete with India in international trade.”

• Support for Emerging Export Opportunities: Helps MSMEs explore and capitalize on high-potential global markets.
• Support for Trade Instruments for MSMEs: Enhances access to essential financial tools for export operations.
• Collateral Support for Export Credit: Offers collateral coverage of up to 80% (or as determined by a support agency) for MSMEs and e-commerce exporters, based on the exporter’s performance record.
• E-commerce Export Credit Card Sub-Scheme: Provides tailored credit solutions for e-commerce exporters to manage their financial needs efficiently.
• BharatTradeNET: A digital network platform to integrate trade finance services and resources.

2. NIRYAT DISHA – International Market Access Support: This pillar focuses on expanding global market reach, enhancing compliance, and boosting India’s brand abroad through six targeted sub-schemes:

• Technical Regulations and Compliance Enablement (TRACE): Assists exporters in meeting foreign technical regulations and certification standards.
• Focussed Market Access Initiative (FMAI): Targets specific international markets for deeper export penetration.
• Facilitating export Logistics and Overseas Warehousing (FLOW): Supports improvements in logistics and development of overseas warehousing.
• Global Outreach for Branding Exports (GLOBE): Promotes Indian products globally through branding and marketing initiatives.
• Export Planning and Development for Districts and Clusters (EXPAND): Encourages export growth at the grassroots level through district-focused planning.
• InCent-LGD (R&D Support for Lab Grown Diamonds): Supports innovation and export development for lab-grown diamonds through R&D at IIT Madras.

All sub-schemes will be implemented through a digitally enabled system, using an online ‘intent to claim’ process to streamline applications and monitor progress.

According to Finance Minister Nirmala Sitharaman, the EPM will enable exporters to access credit more easily, benefit from cross-border factoring support, and overcome non-tariff barriers in foreign markets.

Previously, the Ministry received funding through the Market Access Initiative and the Interest Equalisation Scheme (IES), both categorized under export promotion schemes. Now, these schemes have been consolidated under the broader Export Promotion Mission (EPM). Although the IES officially ended on December 31, 2024, exporters have been strongly advocating for its continuation, emphasizing its importance in maintaining competitiveness.

Supporting MSMEs

The new scheme to offer export credit on favourable terms will include provisions to help MSMEs access financing without the need for collateral, along with an average collateral coverage mechanism and a cap on individual exporters. Currently, most MSMEs are required to provide collateral to secure export credit, which remains a significant barrier—surveys show that four out of five MSMEs face this challenge.

To support MSMEs in overcoming non-tariff measures (NTMs), the government is planning to reimburse additional costs related to compliance requirements such as registration, testing, certification, and inspection. NTMs are often more restrictive than tariffs or customs duties and pose a major obstacle to export diversification, especially in agriculture and other sensitive sectors.

The government is also considering a Trade Assistance Programme (TAP) to provide targeted support for exporters entering high-risk international markets.

Additionally, the Commerce Ministry aims to promote factoring services to reduce exporters’ dependence on bank financing. While export factoring is a common trade finance tool globally, its adoption in India has been limited due to high costs, including elevated interest rates, risk premiums, and the absence of support under interest subvention schemes.

To boost uptake, the ministry is exploring the possibility of extending interest subvention to factoring companies. The goal is to scale up cross-border factoring so it accounts for at least 3% of India’s merchandise exports, aligning with the global average. Currently, global cross-border factoring stands at around US$ 758 billion, while India’s share is only about US$1 billion.

Conclusion  

The Export Promotion Mission (EPM) represents a significant policy shift to strengthen India’s export ecosystem, particularly by addressing the unique challenges faced by MSMEs. Through a structured framework of trade finance support and international market access initiatives, EPM aims to make Indian exporters more competitive globally. With a focus on digitization, credit facilitation, logistics, branding, and regulatory compliance, the mission lays a strong foundation for inclusive and sustainable export growth in the coming years.