India's Export Revival: ₹45,060 Cr Cabinet-Approved Package Aims to Boost Trade Amid Global Headwinds
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In a bid to support Indian exporters and small and medium enterprises (SMEs) navigate the challenging global trade landscape, the Union cabinet has approved a ₹45,060 crore package. The package includes a ₹25,060 crore Export Promotion Mission (EPM) and a ₹20,000 crore credit guarantee scheme. The EPM, which aims to promote the 'complete export ecosystem,' will provide liquidity support to SMEs and help them tide over global headwinds such as high US tariffs. The six-year mission will focus on sectors like textiles, leather, gems and jewelry, engineering goods, and marine products, which have been hit hard by the 50% tariff imposed by the US. The mission has two pillars: 'Niryat Protsahan' (Export Promotion) and 'Niryat Disha' (Export Direction). The first pillar will improve access to affordable trade finance for SMEs through various instruments, while the second pillar will help exporters counter non-tariff barriers in various markets. The credit guarantee scheme, worth ₹20,000 crore, will provide additional working capital, collateral-free credit support, and 100% government guarantee to Indian exporters, particularly MSMEs. This scheme will help protect Indian exporters from the current global geo-economic environment. The approval of these schemes reflects a pragmatic and forward-looking vision for India's trade sector. According to Ajay Sahai, director general and CEO of the Federation of Indian Export Organisations, the twin schemes will empower MSMEs and provide much-needed continuity, flexibility, and responsiveness to global trade dynamics. The commerce ministry will issue detailed guidelines for the credit guarantee scheme soon, and the scheme may be extended further with the approval of the finance ministry. The ₹45,060 crore package is aimed at helping India achieve its over $1 trillion merchandise exports target and boost the country's trade sector amid global headwinds.
