India to Roll Out Export Promotion Mission Components for Labour-Intensive Sectors

India is set to implement three components of the Export Promotion Mission (EPM) this week, aimed at strengthening export competitiveness across sectors. The initiative will provide targeted assistance to landlocked states, which face logistical challenges in accessing global markets.

While the Finance Ministry’s package focuses on export credit and moratoriums, the Commerce Ministry is working on complementary measures such as market access and interest subvention to ease exporters’ concerns. The rollout comes amid efforts to consolidate fragmented schemes into a unified framework for export growth.

Key Features of the Export Promotion Mission

The EPM, approved by the Union Cabinet on November 12, seeks to create a comprehensive and digitally driven export promotion system. With a total outlay of ₹25,060 crore for FY 2025–26 to FY 2030–31, the mission aims to support micro, small, and medium enterprises (MSMEs), first-time exporters, and labour-intensive sectors.

The government described the initiative as a strategic shift from multiple standalone schemes to a single, outcome-based mechanism. This approach is designed to respond swiftly to global trade challenges and evolving exporter needs.

Trade Challenges and Diversification Efforts

The Commerce Ministry highlighted that exporters to the United States have maintained their position despite tariffs of up to 50% on labour-intensive goods, which are about 30% higher than those faced by competitors. Discussions on a potential trade deal to address tariff-related issues are ongoing.

Textile exporters remain under pressure due to the size of the US market, although some diversification has occurred. The ministry noted that targeted support for US-bound exports would have limited impact because of prevailing tariff structures.

Performance of Key Export Segments

Despite one-third of marine exports being dependent on the US, overall shipments of marine products have increased during the first eight months of the current fiscal year. This growth has been driven by higher exports to the European Union (EU) and the Association of Southeast Asian Nations (ASEAN) bloc.

The Commerce Ministry stated that these trends reflect the resilience of Indian exporters and their ability to tap alternative markets. The EPM is expected to further strengthen such diversification efforts by improving market access and reducing operational bottlenecks.

Collaborative Framework for Implementation

The EPM will operate under a collaborative framework involving the Department of Commerce, Ministry of MSME, Ministry of Finance, and other stakeholders. These include financial institutions, Export Promotion Councils, Commodity Boards, industry associations, and state governments.

The mission’s design emphasises flexibility and adaptability, ensuring that support measures can be tailored to sector-specific requirements. By integrating digital tools and streamlined processes, the government aims to enhance transparency and efficiency in export promotion.

Read More: Indian Rice Exports to US Stay Firm Despite Higher Tariffs.

Conclusion

The rollout of the Export Promotion Mission marks a significant step toward consolidating India’s export support ecosystem. With a focus on MSMEs, labour-intensive sectors, and states with logistical disadvantages, the initiative seeks to boost competitiveness in global markets.

While external challenges such as tariffs remain, measures under the EPM are expected to strengthen diversification and improve resilience. The government’s integrated approach underscores its commitment to achieving sustainable export growth in the coming years.

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