The Ministry of Commerce and Industry has proposed a Rs 25,000 crore WTO-compliant support scheme for small exporters in labor-intensive sectors such as textiles, gems and jewelry, and marine products through the Export Promotion Mission over a six-year period.
A senior official confirmed that the proposal has been sent to the Finance Ministry for approval, after which it will be forwarded to Cabinet for final approval before being implemented.
These schemes are intended to comply with World Trade Organization (WTO) regulations and will focus on trade finance and improving exporters' market access.
Key Highlights
- ₹25,000 crore Export Promotion Mission launches, funding Niryat Protsahan and Niryat Disha to aid exporters, especially MSMEs.
- Focus on trade finance, interest equalization, quality compliance, market access, branding, warehousing and logistics support.
The new package of schemes under the Export Promotion Mission follows the Rs. 2,250 crore mission announced in the 2025-26 Union Budget, which has yet to be implemented. Given the uncertainty in the international market caused by the increase in US tariffs, the launch has become even more urgent.
There is a need to diversify markets, so the schemes will also focus on developing the logistics chain and marketing to diversify Indian export markets.
The government sees this mission as a long-term strategy that addresses issues beyond tariffs and trade wars. The strategy includes promoting exports and diversifying markets and export baskets to increase competitiveness. High interest rates in the Indian banking sector tend to put the country's exporters at a disadvantage compared to their competitors, and financing on more affordable terms would help to close this gap.
The programs seek to assist exporters by providing collateral-free loans, alternative financial instruments, and assistance with new markets. The schemes will be implemented in collaboration with the MSME Ministry, as the sector is the largest employer in the country.
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According to the Commerce Ministry's most recent data, India's merchandise exports increased 7.29 percent to $37.24 billion in July this year, up from $34.71 billion in the same month the previous year.
"Despite an uncertain global policy environment, India's services and merchandise exports in July and FY26 so far have grown significantly, outpacing global export growth," Commerce Secretary Sunil Barthwal said.
The increase in goods exports is also due to exporters increasing shipments in anticipation of higher US tariffs, which went into effect in August. Exports increased by 3.07 percent to $149.2 billion during the current fiscal year (April-July 2025-26), while imports increased by 5.36 percent to $244.01 billion.
Barthwal went on to say that the government is working to diversify the country's exports to other countries in response to the US's steep tariff increases. The government intends to expedite free trade agreements while also reviewing existing agreements with the EU, the UK, the EFTA, Oman, ASEAN, New Zealand, Peru, and Chile.
He also stated that the government intends to strengthen export promotion schemes. He stated that steps were being taken to shift the focus to the top 50 importing countries through the deployment of missions abroad for export promotion efforts.
