India Launches Rs 25,000 Crore Export Boost
In response to the rising challenges of high tariffs imposed by the United States, the Indian government has initiated a significant Export Promotion Mission (EPM) with an outlay of Rs 25,060 crore. This comes amid a concerning decline in exports, particularly to the US, where shipments dropped by 12% in September due to the 50% tariff that took effect on August 27. The engineering goods sector, vital to India’s export economy, saw a decrease of 9.4% in exports to the US.
To counter these adverse effects, the Union Cabinet has approved additional credit facilities amounting to Rs 20,000 crore to exporters. This comprehensive mission prioritizes sectors most impacted by global tariff escalations, including textiles, leather, gems and jewellery, and marine products. The goal is to sustain export orders, protect jobs, and facilitate diversification into new markets.
Railway Minister Ashwini Vaishnaw emphasized that the mission will enhance the availability of credit while reducing costs, particularly for micro, small, and medium enterprises (MSMEs) aiming to tap into new export opportunities. The initiative also addresses non-tariff barriers, such as compliance with international standards and technical measures, helping exporters navigate the complex landscape of global trade.
The EPM will offer a digitally driven framework for export promotion from FY 2025-26 to FY 2030-31, consolidating existing support schemes to align with current trade needs. It includes the Credit Guarantee Scheme for Exporters (CGSE), providing 100% coverage for additional credit to eligible exporters, thereby enhancing their global competitiveness.
Industry leaders have welcomed this initiative, noting its potential to empower the textile and apparel sector, which is heavily reliant on the US market. The Export Promotion Mission aims to ensure that Indian textiles can leverage opportunities arising from free trade agreements while diversifying into new markets.
However, the imposition of high tariffs has already taken a toll, leading to significant declines in textile and apparel exports in September 2025 compared to the previous year. The mission seeks to provide continuity and flexibility in addressing the dynamic challenges of global trade, particularly for MSMEs that often struggle to access affordable finance and compliance support.
By directly tackling structural challenges such as high compliance costs and logistics bottlenecks, the EPM is poised to sustain export momentum, safeguard employment, and diversify India’s export base into emerging sectors. As India aims to boost its presence in global markets, this mission represents a crucial step towards enhancing the country’s export capabilities.
