India to use every policy to support exports: Goyal
TL;DR
India launches a ₹25,060-crore Export Promotion Mission to boost exports, focusing on MSMEs with credit facilities, compliance support, and logistics aid. It aims to simplify processes, reduce costs, and leverage FTAs for global competitiveness.
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India to use every policy to support exports: Goyal
India has launched a comprehensive ₹25,060-crore Export Promotion Mission (EPM) to bolster its export sector, with a focus on micro, small, and medium enterprises (MSMEs) and emerging markets. Announced by Commerce Minister Piyush Goyal, the six-year initiative consolidates multiple export-support schemes into a unified framework, aiming to simplify processes, reduce costs, and enhance global competitiveness.
Key measures include credit facilities for e-commerce exporters, such as the Direct E-Commerce Credit Facility (up to ₹50 lakh with 90% guarantee coverage) and the Overseas Inventory Credit Facility (up to ₹5 crore with 75% guarantee coverage and 2.75% interest subvention) according to government announcements. These tools address financing challenges, enabling smaller firms to manage inventory and cash flow in international markets. Additionally, an interest subvention of 2.75% on export factoring transactions will support MSMEs in accessing affordable working capital.
The mission also introduces compliance and logistics interventions. The TRACE program reimburses 60–75% of costs for meeting international quality standards, while the FLOW initiative provides up to 30% support for overseas warehousing infrastructure, reducing delivery delays and logistics costs. For geographically disadvantaged regions, the LIFT scheme offers 30% reimbursement on freight expenses, capping at ₹20 lakh annually.
Goyal emphasized aligning export growth with emerging sectors like AI and data centers, leveraging India's expanding network of free trade agreements (FTAs), including the interim pact with the U.S. and ongoing negotiations with the EU. These efforts aim to diversify market access, with 70% of global GDP now reachable through nine concluded FTAs.
By addressing financial, compliance, and logistical barriers, the EPM seeks to strengthen India's export ecosystem and position MSMEs as key players in global trade according to economic analysis.
