India Unveils Bold Export Boost to Shield Against Trump Tariffs

13th November 2025 at 12:13 PM

2 minutes read

The lawsuit targets a presidential proclamation issued last month.

In a strategic response to potential trade disruptions from incoming U.S. President Donald Trump’s proposed tariffs, the Union Cabinet led by Prime Minister Narendra Modi has greenlit a comprehensive Export Promotion Mission (EPM) worth Rs 25,060 crore, alongside an expanded credit guarantee scheme for exporters.

Announced originally by Finance Minister Nirmala Sitharaman in the Union Budget 2025, the six-year EPM—spanning FY 2025-26 to FY 2030-31—merges existing export support programs into a unified, digital-driven framework. This comes amid concerns over a possible 50% penal tariff on Indian goods to the U.S., aiming to fortify sectors like textiles, leather, gems and jewellery, engineering goods, and marine products.

The mission introduces two key sub-schemes: Niryat Protsahan and Niryat Disha. Niryat Protsahan focuses on affordable financing for MSMEs through interest subvention on pre- and post-shipment credit, export factoring, deep-tier financing, specialized credit cards for e-commerce exporters, collateral support, and aid for entering high-risk markets.

Niryat Disha targets compliance and market access, offering assistance for testing, certification, audits, international trade delegations, buyer-seller meets, export warehousing, inland transport in remote areas, branding, packaging, and trade intelligence via digital platforms for MSMEs and industry clusters.

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Implemented by the Directorate General of Foreign Trade (DGFT), the EPM addresses core export hurdles such as costly trade finance, stringent global standards, weak branding, and logistics challenges in interior regions. It is projected to ease credit access, improve product readiness, expand market reach, spur exports from underserved districts, and create jobs in manufacturing and related fields.

Separately, the Cabinet enhanced the Credit Guarantee Scheme for Exporters, managed by the National Credit Guarantee Trustee Company Limited (NCGTC) under the Department of Financial Services. This provides up to Rs 20,000 crore in collateral-free credit through member lending institutions to eligible exporters, including MSMEs.

Overseen by a committee chaired by the DFS Secretary, the scheme seeks to bolster liquidity, sustain operations, and drive diversification into new markets, aligning with India’s $1 trillion export goal and Aatmanirbhar Bharat vision.

Exports account for about 21% of GDP in FY 2024-25, supporting over 45 million jobs, with MSMEs contributing nearly 45% of shipments. Sustained growth is crucial for foreign exchange reserves and economic balance, underscoring the need for timely government support amid global trade shifts.