Export Promotion Mission (EPM) and Credit Guarantee Scheme for Exporters (CGSE) Approved by the Union Cabinet

(Image: DhruvStar Industry Insights | Original Artwork)

Part I - Export Promotion Mission (EPM)

Overview of the Export Promotion Mission

The Union Cabinet has approved the Export Promotion Mission (EPM), announced in the Union Budget 2025-26, to strengthen India’s export competitiveness, especially for MSMEs, first-time exporters, and labour-intensive sectors.

The Mission consolidates several existing schemes, such as the Interest Equalisation Scheme (IES) and the Market Access Initiative (MAI), into a single, outcome-driven framework. 

With an outlay of INR 25,060 crore for 2025-26 to 2030-31, EPM aims to provide a flexible and responsive mechanism that can adapt to global trade developments and evolving exporter requirements.

Institutional Framework of the EPM

The Department of Commerce, the Ministry of MSME, the Ministry of Finance, and several stakeholders, including financial institutions, Export Promotion Councils, Commodity Boards, industry bodies, and state governments, will implement the Export Promotion Mission.

Sub-Schemes Under EPM

The Mission has two integrated sub-schemes:

• NIRYAT PROTSAHAN: Focused on improving MSMEs’ access to affordable trade finance through instruments such as interest subvention, export factoring, collateral guarantees, credit cards for e-commerce exporters, and support for entering new markets.
• NIRYAT DISHA: Focused on non-financial support, including assistance for export quality and compliance, branding and packaging, participation in trade fairs, export warehousing and logistics, inland transport reimbursements, and trade intelligence and capacity-building.

Key Export Challenges Addressed

The Mission directly targets structural issues affecting Indian exports: limited access to affordable trade finance, high compliance costs, weak export branding, fragmented market access, and logistical disadvantages faced by exporters in interior and low-export-density regions.

Priority Sectors Under the Export Promotion Mission

EPM will extend priority support to sectors affected by recent global tariff increases, including textiles, leather, gems and jewellery, engineering goods, and marine products. These interventions aim to protect export orders, safeguard jobs, and help firms diversify into new markets.

Expected Impact

EPM is expected to widen access to affordable trade finance for MSMEs, improve export readiness through compliance and certification support, increase global visibility for Indian products, boost exports from non-traditional districts, and create jobs across manufacturing, logistics, and allied sectors.

It represents a forward-looking shift towards a more inclusive and technology-enabled export ecosystem aligned with the vision of Viksit Bharat @ 2047.

Part II - Credit Guarantee Scheme for Exporters (CGSE)

The Union Cabinet has approved the Credit Guarantee Scheme for Exporters (CGSE), which provides 100% credit guarantee coverage through the National Credit Guarantee Trustee Company Limited (NCGTC).

The scheme enables Member Lending Institutions (MLIs) to extend additional collateral-free credit of up to INR 20,000 crore to eligible exporters, including MSMEs.

Implementation Framework

The Department of Financial Services (DFS), through NCGTC, will implement the Credit Guarantee Scheme for Exporters.

A Management Committee, headed by the Secretary of the DFS, will monitor progress and oversee the implementation of the scheme.

Expected Impact

The scheme is expected to enhance the global competitiveness of Indian exporters and support entry into new and emerging markets. By providing collateral-free credit, CGSE will ease liquidity constraints, enable smoother business operations, and support India’s USD 1 trillion export goal. 

The initiative also aligns with India’s broader push for Aatmanirbhar Bharat through an export-led growth strategy.

Background & Rationale

Exports contribute nearly 21% of India’s GDP (FY 2024-25) and play a key role in building foreign exchange reserves. Export-oriented industries employ over 45 million people, with MSMEs accounting for about 45% of total exports.

Given the critical importance of MSMEs to the Indian economy and the need for additional financial support to help exporters diversify their markets and remain competitive, the scheme provides timely credit assistance to sustain business expansion and growth.

India’s Exports: Overview

(Data Source: Ministry of Commerce & Industry)

• The US, UK, Japan, UAE, and France were India’s top export destinations in terms of value change in FY25 compared to FY24.
• Top export products: Engineering goods, Agriculture and food products, Textiles, gems & jewellery, and Services.

DhruvStar Industry Insights: What it Means for the Indian Exporters

• Utilise Export Promotion Mission’s Branding & Compliance Support to Enter Higher-Value Markets: Exporters, especially MSMEs, should leverage EPM’s assistance with certifications, packaging upgrades, and international branding to enter premium markets with stricter quality standards.
• Opportunity to Expand Product Lines for Non-Traditional Districts Under EPM: Industries operating in tier-2/3 clusters can align with EPM’s incentives by developing export-ready product lines (such as agri-processing, textiles, and handicrafts) suited for underserved global markets.
• Utilise CGSE’s (Credit Guarantee Scheme for Exporters) Collateral-Free Credit to Build Working Capital Buffers: Exporters should utilise the 100% credit guarantee window to negotiate better credit terms with banks, stabilise cash flows, and reduce dependence on high-cost informal financing.
• Deploy CGSE Funding for Market Diversification: Firms should utilise the additional credit to explore new geographies, including Latin America, Africa, and ASEAN niche segments. Stay updated for FTA negotiations, such as the ongoing India-New Zealand FTA talks, to gain a time advantage.

Sources

[1] PIB

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