Indian Government's Export Promotion Mission
The Indian government is revising its Export Promotion Mission to better address the challenges posed by the increased tariffs imposed by the U.S. on imports from India. This strategy aims to focus on specific sectors and involves a collaborative effort across multiple ministries, with comprehensive consultations with industry stakeholders.
Key Sectors Affected
- Apparel and Textiles
- Shrimp Exporters
- Organic Chemicals
- Machinery and Mechanical Appliances
Strategic Measures
- Reduction in the cost of credit for medium, small, and micro enterprise (MSME) borrowers.
- Expedited clearances for exports.
- Provision of export incentives.
- Credit guarantees for MSME exporters.
These measures are part of a broader effort to provide targeted assistance to the sectors most impacted by U.S. tariffs. The collaboration involves the Ministries of Commerce, Finance, MSME, and Textiles and the Department of Fisheries.
Budget Allocation and Mission Objectives
In the Union Budget for 2025-26, ₹2,250 crore was allocated was allocated to this mission to:
- Facilitate easy access to export credit.
- Support cross-border factoring.
- Help MSMEs handle non-tariff measures in international markets.
Furthermore, a Finance Ministry official confirmed that there is an ongoing effort to revamp a credit guarantee scheme for the MSME sector to emphasize export activities, covering loans up to ₹100 crore.
