The Union Cabinet has approved two schemes worth ₹45,060 crore to provide relief to exporters. These include the Export Promotion Mission and the Credit Guarantee Scheme. These schemes will provide financial assistance and strengthen global competitiveness for MSME exporters.
New Delhi: The Indian government has taken a significant step to provide relief to exporters. The Union Cabinet on Wednesday approved two new schemes totaling ₹45,060 crore. The primary objective of these schemes is to provide assistance and protection, especially to MSME (Micro, Small, and Medium Enterprises) exporters. This decision comes at a time when the US has imposed duties of up to 50 percent on Indian products, affecting several industries in India.
Two Major Schemes Approved for Exporters
Two key schemes have been approved at the Cabinet meeting. The first scheme is the Export Promotion Mission (EPM), for which ₹25,060 crore has been allocated. The second is the Credit Guarantee Scheme for Exporters (CGSE), for the expansion of which ₹20,000 crore has been approved. Together, both schemes will work to provide financial and structural strength to exporters.
This announcement was made a week after Prime Minister Narendra Modi's meeting with the heads of Export Promotion Councils. In that meeting, industries affected by US tariffs had sought relief from the government.
Objective of Export Promotion Mission (EPM)
The objective of the Export Promotion Mission is to make India's exports competitive and encourage new exporters. This scheme will run until fiscal year 2031 and will include two sub-schemes — 'Export Promotion' and 'Export Direction'.
Under this mission, an investment of ₹25,060 crore will be made. Of this, ₹10,401 crore will be spent on 'Export Promotion' and ₹14,659 crore on 'Export Direction'. Its goal is to promote labor-intensive sectors such as textiles, leather, gems and jewelry, engineering goods, and marine products.
Financial Support from 'Export Promotion' Scheme
The 'Export Promotion' scheme aims to provide financial assistance. This includes interest subvention, export factoring, interest guarantees, credit cards for e-commerce exporters, and credit enhancement support for entering new markets.
Minister of Information and Broadcasting, Ashwini Vaishnaw, stated that this mission is a comprehensive framework that will strengthen the entire export ecosystem. It will provide small industries with opportunities to expand into global markets and offer interest rate relief to exporters.
'Export Direction' Scheme to Enhance Quality and Competitiveness
The 'Export Direction' scheme will focus on non-financial capabilities. Under this, several measures will be taken to enhance the quality and global competitiveness of Indian products.
Under this scheme, exporters will receive support for international branding, packaging, participation in trade fairs, export warehousing, inland transport reimbursement, and trade intelligence. The government believes these steps will make Indian products more attractive in global markets.
Credit Guarantee Scheme for Exporters (CGSE) Extended
The Cabinet has extended the Credit Guarantee Scheme for Exporters until March 31, 2026. Under this scheme, exporters will receive collateral-free loan assistance as additional working capital, up to 20 percent of their sanctioned export limit.
Under this scheme, the government will provide a guarantee for loans up to ₹50 crore. This will enable banks and financial institutions to easily provide credit to exporters. This move will prove to be a significant support for MSME exporters, who often fall behind in global trade due to a lack of capital.
National Credit Guarantee Trustee Company to Operate
This scheme will be implemented through the National Credit Guarantee Trustee Company (NCGTC). It will be operated by the Department of Financial Services.
A Management Committee, chaired by the Secretary of the Department of Financial Services, will be formed to oversee the scheme. This committee will ensure that the benefits of the scheme reach eligible exporters in a transparent manner.
Effort to Provide Relief from US Tariffs
In August 2025, the US imposed a heavy 50 percent duty on Indian goods. This impacted several Indian sectors like chemicals, engineering, and textiles. These new schemes will help exporters recover from this setback.
Royalty Reforms in Mineral Sector Approved
The Cabinet meeting also approved a proposal for royalty rate reforms on certain critical minerals. This will boost domestic production and provide cost relief to mineral-based industries. This step will further strengthen the 'Make in India' and 'Atmanirbhar Bharat' campaigns.
