Export Promotion Mission in works; comprehensive package to include funding support, avenues for market diversification

In what could give significant relief to exporters, the government is readying the proposed Export Promotion Mission, which could be approved by the Union Cabinet later this month. According to sources, the proposed scheme, which is aimed at giving incentives and support to exporters, is aimed at a holistic five-year period.

A particular focus of the proposed scheme would be small and medium exporters and providing easier access to funding as well as avenues for market diversification, sources explained. Some impact of recent measures for product and market diversification is already evident in the growth in exports, and this will continue in the scheme as well.

Rather than just providing fiscal sops, which also raise concerns around WTO compliance, the focus will be more on giving exporters support to grow beyond immediate crises, such as the ongoing challenges from the US tariffs. A key component of this would be a revised interest subvention scheme that would give fiscal support to exporters.

“The contours of the scheme have largely been finalised. It now needs to be approved by the Union Cabinet, which is expected shortly,” explained a source.

While the Union Budget 2025-26 had allocated Rs 2,250 crore to the Export Promotion Mission, the overall outlay is expected to be much larger at about Rs 15,000 crore as it now seeks to cover a five-year period in sync with that of the 16th Finance Commission recommendations from April 1, 2026, to March 31, 2031.

Prime Minister Narendra Modi met exporters on November 3 to understand the challenges being faced by them from the 50% tariffs levied by the US and to discuss how to improve the competitiveness of Indian exports.  A delegation led by SC Ralhan, President, Federation of Indian Export Organisations also met finance minister Nirmala Sitharaman on Monday. Commerce and industry minister Piyush Goyal also held discussions with export promotion councils on October 30.

While the government has been negotiating a trade deal with the US, exporters remain a worried lot and India’s exports to the US have fallen by 37.5% between May and September this year. Exporters have sought government support to tide over this challenge with measures including a loan moratorium and an interest subsidy to remain competitive. However, with a trade deal with the US under discussion, the government has, till now, not given a support package.

Exporters are now awaiting the setting up of the Export Promotion Mission at the earliest. “Having the Export Promotion Mission in place, preferably by the end of the year, will act as a huge confidence-booster for India’s exporter fraternity in the wake of the continued uncertainty around the date by which the US tariff issue will be resolved and the potential opportunities opening through the FTAs already signed by India and those on the anvil,” CITI Chairman Shri Ashwin Chandran said.