The Union Cabinet has approved two significant support schemes worth ₹45,060 crore for exporters, particularly MSMEs, who are suffering pressure from the recent 50% tariff rise imposed by the US on a range of Indian products. The announcement follows several meetings with export promotion councils, which identified the challenges created by the new trade barrier.
The approved package allocates ₹25,060 crore for the Export Promotion Mission and ₹20,000 crore for the Credit Guarantee Scheme for Exporters.
The Export Promotion Mission will operate from FY26 to FY31. It seeks to strengthen export readiness in industries like textiles, leather, gems and jewellery, engineering goods, and maritime exports. The mission also combines past efforts, like the Interest Equalisation Scheme and the Market Access Initiative, to streamline support under one structure.
The EPM will include two components. Niryat Protsahan will offer trade finance, interest support, credit guarantees, and export factoring to small businesses.
The Credit Guarantee Scheme for Exporters will be in place until March 31, 2026. NCGTC would provide collateral-free loans, up to 20% working capital, and a complete government guarantee for lending up to ₹50 crore.
