Centre Mulls Rs 25,000 Crore Sops For Exporters
The funds would be sanctioned under the Export Promotion Mission for six financial years, staring 2025 to provide relief from US tariff hike effective Aug. 27
New Delhi: Sensing that the export sector in India could be a major hit after the US imposition of tariff from August 27, the Centre is mulling some immediate relief about Rs 25,000 crore for the country’s exporters under the Export Promotion Mission for six financial years, staring 2025 to 2031, a top government source said on Sunday.
As per the source, the commerce ministry has already prepared a 'blueprint' to offer the major sops for the export sectors, emphasising mostly on micro, small and medium enterprises (MSMEs). The ministry has sent the proposal to the expenditure finance committee (EFC) under the Union finance ministry for its approval. After the approval from the EFC, the commerce ministry would approach the Union Cabinet for its implementation as well,” the source said.
The source further said that the commerce ministry has proposed that the mission, if approved by the Centre, will be implemented through two sub-schemes — Niryat Protsahan with over Rs 10,000 crore investment and Niryat Disha over Rs 14,500 crore. “Our primary focus is to provide easy and affordable credit to the exporter community at this time of crisis when the US tariff is expected to hit badly to the sector,” the source said.
“The proposed measures, if approved, can help insulate domestic exporters, both small and big export firms, from the ongoing global trade uncertainties arising from the Trump tariffs. Sectors like textiles, chemicals, leather and footwear are likely to be hit hard by the high Trump tariffs of 50 per cent on Indian goods, starting August 27. At present, a 25 per cent duty is in place,” the source added.
In the February budget this year, the government earmarked Rs 2,250 crore for export promotion schemes for 2025-26, down 17 per cent from Rs 2,718.73 crore allocated in the revised Budget estimates for 2024-25. The proposed mission also sought to enable broad-based, inclusive, and sustainable export growth over six years (FY 2025-31) by exploring approaches beyond conventional mechanisms to address key bottlenecks faced by Indian exporters, especially MSMEs.
As per the ministry’s proposal, the main elements under the Niryat Protsahan scheme, being considered by the government, include interest equalisation support worth over Rs 5,000 crore for six financial years (2025-2031), support for alternative trade finance instruments, a credit card for e-commerce exporters, and other financing mechanisms to bridge liquidity gaps faced by exporters.
Similarly, under Niryat Disha, the proposed components include support for export quality compliance about Rs 4,000 crore, overseas market development over Rs 4,000 crore, branding, export warehousing and logistics, and capacity building to integrate more Indian enterprises into global value chains.
The Export Promotion Mission or EPM is anchored in a collaborative framework, involving all export promotion councils, department of commerce, ministry of MSME, ministry of finance, and other line ministries and stakeholders, including Exim Bank, ECGC (export credit guarantee corporation), Credit Guarantee Fund Trust for Micro and Small Enterprises, National Credit Guarantee Trustee Company Ltd, commodity boards, industry associations, and state governments.
Snapping the two-month declining streak, the latest government data showed that India’s exports rebounded by 7.29 per cent to $37.24 billion in July, while the trade deficit widened to an eight-month high of $27.35 billion during the month. “During April-July 2025-26, exports increased by 3.07 per cent to $149.2 billion, while imports rose 5.36 per cent to $244.01 billion,” the data showed.
