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The Union Cabinet connected Wednesday approved the Export Promotion Mission (EPM) to found a operation for enhancing India's export capabilities. (AI image)
The Modi government’s determination to o.k. an Export Promotion Mission aimed astatine countering the interaction of the planetary commercialized concern whitethorn beryllium laced with implementation challenges, says Ajay Srivastava, laminitis of Global Trade and Research Initiative (GTRI).The Union Cabinet connected Wednesday approved the Export Promotion Mission (EPM) to found a operation for enhancing India's export capabilities. The determination holds value for its timing, fixed however India’s exporters are facing a deed from the Donald Trump administration’s 50% tariffs. However, according to GTRI, the inaugural presently exists arsenic a wide conception requiring elaborate implementation plans, whilst its yearly allocation appears insufficient for its ambitious objectives.
The programme's effectiveness volition trust connected speedy implementation, enhanced interdepartmental collaboration, and further fiscal resources, it says.Also Read | Countering Trump tariffs impact! Modi authorities approves caller Export Promotion Mission & recognition warrant strategy for exporters; cheque details
What is the Export Promotion Mission?
- The Union Cabinet sanctioned ₹25,060 crore spanning 6 years (FY 2025-26 to FY 2030-31) for the EPM.
- The ngo seeks to found a unified model to heighten India's export competitiveness.
- The EPM was antecedently announced successful the 2025-26 Budget.
The EPM comprises 2 superior components:NIRYAT PROTSAHAN, which aims to trim commercialized financing costs for MSMEs done assorted measures including involvement assistance, export factoring, collateral guarantees, recognition enhancement, and e-commerce export recognition cards.
Priority information volition beryllium fixed to sectors affected by caller planetary tariff increases, including textiles, leather, gems and jewellery, engineering goods, and marine products.NIRYAT DISHA, the 2nd component, offers non-financial assistance encompassing export prime and compliance support, improved branding and packaging, planetary commercialized just information opportunities, export warehousing facilities, logistics support, and inland transport reimbursement provisions.The EPM incorporates erstwhile programmes specified arsenic the Interest Equalisation Scheme (IES) and the Market Access Initiative (MAI).Also Read | Trump tariffs: Why India should propulsion for rollback of Russian lipid punishment earlier commercialized woody with US; 3-point strategy explained
Export Promotion Mission: What are the challenges?
GTRI cautions that the Export Promotion Mission has notable shortcomings, contempt its potential.
- Since its February announcement, EPM remains astatine a conceptual stage, requiring elaborate strategy guidelines covering eligibility criteria, operational procedures and disbursement protocols.
- Development of the integer level is pending, perchance causing months of hold earlier benefits scope exporters.
- Financial constraints contiguous further hurdles. The allocated fund of ₹25,060 crore dispersed crossed six years amounts to nether ₹4200 crore annually. Considering the Interest Equalisation Scheme unsocial utilised implicit ₹3,500 crore past year, minimal funds stay for important activities including branding, packaging, accumulation participation, compliance and logistics support. The fiscal allocation appears insufficient for the Export Promotion Mission’s scope, says GTRI.
- Organisational hurdles besides exist. While DGFT holds implementation authority, fiscal programmes similar involvement subvention antecedently operated done banks nether RBI oversight.
- These disbursements are traditionally linked with export financing. DGFT requires further expertise for this responsibility, perchance resulting successful slower processing and operational bottlenecks.
