Introduction: Why Exports Matter and The Tariff Shock
Exports form a vital pillar of India’s economic architecture. They generate foreign-exchange earnings, support manufacturing activity, provide employment (especially in labour-intensive sectors) and help maintain macro-economic stability. The press release notes that export-oriented industries directly and indirectly employ over 45 million people, and MSMEs contribute nearly 45 % of total exports.
In recent years, however, global trade dynamics have become more challenging. With major trading partners (notably the United States) imposing tariff hikes, supply‐chain disruptions and shifting market preferences, Indian exporters—especially in labour‐intensive sectors like textiles, leather, gems & jewellery—have found competitiveness under pressure.
Against this backdrop, the Government of India has launched two key interventions to strengthen the export ecosystem:
- the flagship Export Promotion Mission (EPM); and
- the Credit Guarantee Scheme for Exporters (CGSE).
Export Promotion Mission (EPM):
On 12 November 2025 the Union Cabinet approved the EPM with an outlay of ₹25,060 crore for the period FY 2025-26 to FY 2030-31.
Objective of the Scheme: to move from a fragmented set of export‐promotion schemes to a unified, digital, outcome-based framework that can respond swiftly to global trade shifts. The mission is anchored by the Directorate General of Foreign Trade (DGFT) as the nodal agency, and it will leverage collaboration across the Department of Commerce, the Ministry of MSME, Ministry of Finance, export promotion councils, industry associations and state governments.
Two Sub-Schemes
- NIRYAT PROTSAHAN: Focused on improving access to affordable trade finance for MSMEs and first-time exporters. Instruments include interest subvention, export factoring, collateral guarantees, credit-cards for e-commerce exporters and credit enhancement support for diversification into new markets.
- NIRYAT DISHA: Addresses non-financial enablers, export quality and compliance support, international branding and packaging, participation in trade fairs, export warehousing & logistics, inland transport reimbursements, trade intelligence and capacity building.
Why It’s Needed
Structural challenges faced by Indian exporters include:
- Limited and expensive trade finance.
- High cost of complying with international export standards.
- Inadequate branding and fragmented market access.
- Logistics disadvantages for exporters located in inland or low-export districts.
By consolidating existing schemes (e.g., the Interest Equalisation Scheme (IES) and the Market Access Initiative (MAI)) under EPM, the government hopes to simplify access and make support more agile.
Target Sectors & Outcomes
Priority will be given to sectors facing tariff/hurdle pressures such as textiles, leather, gems and jewellery, engineering goods and marine products.
The expected outcomes include improved trade finance access for MSMEs, enhanced export readiness, improved market access and visibility, increased exports from non-traditional districts, and employment generation across manufacturing, logistics and allied services.
Credit Guarantee Scheme for Exporters (CGSE)
In tandem with EPM, the Cabinet on the same date approved the CGSE – a scheme envisaged to provide up to ₹20,000 crore in additional credit facilities to eligible exporters (both MSME and non-MSME) via collateral-free lending and 100 % credit guarantee coverage by the National Credit Guarantee Trustee Company Limited (NCGTC).
This scheme will be implemented by the Department of Financial Services (DFS) through NCGTC, with a Management Committee under the Secretary, DFS overseeing progress.
Significance
- Strengthens liquidity for exporters, which is critical when working-capital cycles are stretched by longer receivables or adverse global market conditions.
- Supports diversification into new and emerging markets – key for exporters facing tariff/trade disruption in traditional markets.
- Reinforces India’s march towards the USD 1 trillion exports target and aligns with the self-reliant (Atmanirbhar) export ecosystem vision.
Combined Impact: What It Means for Exporters & Supply-Chains
For exporters (particularly MSMEs or first-time exporters):
- Better access to affordable trade finance and credit guarantee reduces cost and risk of exporting.
- Non-financial support under EPM (quality, branding, logistics) bridges capability gaps.
- The digital platform architecture ensures more seamless application-to-disbursal flows – reducing friction.
For supply-chain players (such as packaging units, logistics providers, quality labs):
- As exporters scale up under this support, demand for their services is likely to increase.
- Processors and packaging vendors will benefit from enhanced export volumes; they must however ensure compliance (e.g., correct GST treatment, documentation) to integrate smoothly.
For tax/indirect tax advisors and practitioners:
- The confluence of export-benefit schemes and supply-chain expansion presents advisory opportunities: ensuring correct zero‐rating of exports, proper input tax credit flows, documentation for exports, mapping of supply-chain expansions, and dealing with state/district‐specific logistics/disadvantaged region benefits.
- Exporters venturing into non-traditional districts will need guidance on export readiness, state incentives, GST/Customs implications, and scheme eligibility.
Key Considerations and Next Steps
- Implementation timing and clarity: The success of both schemes hinges on guidelines, digital platform readiness, bank/finance-institution coordination and awareness among exporters.
- Eligible criteria and documentation: Exporters should monitor the detailed eligibility, sectoral priorities, application timelines and compliance conditions once DGFT/DFS publish the rules.
- Synergy with other export programmes: Exporters and their advisors must map how EPM/CGSE interact with other schemes (e.g., RoDTEP, EPCG, export-oriented units) and GST/customs benefits.
- Risk of non-compliance: With enhanced benefits comes increased scrutiny; exporters must maintain robust documentation, ensure correct classification and GST flows, and monitor supply-chain expansions.
Author’s Comments:
The dual announcements, the Export Promotion Mission and the Credit Guarantee Scheme for Exporters, represent a strategic and timely push by the Government of India to reinforce the country’s export ecosystem. With an aggregate support envelope of over ₹45,000 crore (₹25,060 crore + ₹20,000 crore), structured finance support, digital-first application processes, and non-financial enablers, the initiatives aim to equip Indian exporters to better withstand global tariff shocks, diversify into new markets and enhance their competitiveness.
For practitioners such as tax and GST advisors, packaging/processing vendors, logistics service-providers and MSME exporters, the moment calls for proactive engagement: evaluating eligibility, aligning business processes, ensuring compliance and leveraging new demand flows.
The export ecosystem is entering a phase of strengthened government backing, digital agility and broader inclusion—set to reshape India’s external trade play-book as we steer towards Viksit Bharat @ 2047.