The central government is considering launching a support scheme worth ₹25,000 crore to boost the country's exports. This scheme, planned to run from fiscal year 2025 to 2031, aims to provide Indian exporters, especially those in the MSME sector, with access to affordable loans, branding support, logistical assistance, and enhanced global competitiveness.
Export Scheme: The central government is preparing to give a major boost to the export sector under the Export Promotion Mission. According to sources, approximately ₹25,000 crore will be spent on this scheme, which is scheduled to run from fiscal year 2025 to 2031. Its objective is to provide easy and affordable loans to Indian exporters, especially in the MSME sector, promote e-commerce exports, and enhance their competitiveness in the global market. The Ministry of Commerce has sent this proposal to the Expenditure Finance Committee (EFC), and after approval, it will be presented to the Union Cabinet.
Scheme to be Divided into Two Parts
The mission is proposed to be divided into two sub-schemes: the first being 'Export Promotion' and the second 'Export Direction'.
A provision of over ₹10,000 crore will be made for the Export Promotion scheme. This will include a fund of more than ₹5000 crore for interest equalization support. The aim is to make easy and affordable loans available to exporters so that they do not lag in the competition.
It is proposed to spend more than ₹14,500 crore on the Export Direction scheme. This will focus on aspects such as the development of foreign markets, branding, logistics, and compliance with quality standards.
6-Year Export Promotion Mission
According to sources, the proposed mission aims to ensure broad-based, inclusive, and sustainable export growth. This mission will not be limited to traditional methods but will focus on removing the obstacles faced by Indian exporters, especially micro, small, and medium enterprises (MSMEs).
The Ministry of Commerce has sent this proposal to the Expenditure Finance Committee of the Ministry of Finance. If it gets approval from here, it will then be placed before the Union Cabinet.
Focus on E-Commerce Exporters Too
The government is also preparing to include e-commerce exporters in this scheme. Under this, the possibility of providing them with credit card facilities is being considered. This will provide relief from cash flow problems to small exporters and enable them to expand their business easily.
The scheme will also emphasize promoting alternative trade finance instruments and measures to address cash shortages. Its aim is to sustain small and medium-sized exporters in the competition.
Emphasis on Export Quality and Branding
Under the Export Direction scheme, an amount of more than ₹4000 crore will be allocated to meet quality standards. This will further strengthen the credibility of Indian products in the global market.
In addition, a large budget has also been earmarked for the branding and promotion of Indian products in foreign markets. An amount of approximately ₹4000 crore or more will be spent on branding and market development.
Improvement in Logistics and Storage Infrastructure
One of the biggest challenges facing Indian exporters is the problem of logistics and storage. A provision has been made in this scheme to address these shortcomings as well. The government will pay special attention to strengthening storage facilities and the logistics network for exports.
Along with this, a capacity-building plan is also being prepared to connect Indian enterprises to the global value chain.
Relief from US Tariffs
A major objective of this scheme is to protect Indian exporters from global trade uncertainties and the impact of US tariffs. In recent years, many countries have changed trade rules and tariffs, which have affected Indian exporters. They are expected to get relief from the proposed scheme.
