Cabinet Clears ₹45,060 Crore Scheme for Exporters and MSMEs

The Union Cabinet on Wednesday cleared 2 schemes worth ₹45,060 crore to support exporters, mainly micro, small and medium enterprises (MSMEs), that have been affected by the recent 50% tariff imposed by the United States on several Indian goods. 

The approval includes ₹25,060 crore for the Export Promotion Mission (EPM) and ₹20,000 crore for the Credit Guarantee Scheme for Exporters (CGSE). The decision follows a series of meetings held with export promotion councils representing sectors hit by the tariff hike.

Export Promotion Mission

The Export Promotion Mission will be implemented over 6 years, from FY26 to FY31. It focuses on improving export competitiveness in sectors such as textiles, leather, gems and jewellery, engineering goods, and marine products.

The plan was first announced in the FY26 Union Budget and has now been expanded in scope and duration. The mission combines earlier support programmes like the Interest Equalisation Scheme and Market Access Initiative under a single structure.

Two Sub-schemes Under EPM

EPM will have 2 components, Niryat Protsahan and Niryat Disha. Niryat Protsahan, with an allocation of ₹10,401 crore, is aimed at providing trade finance, interest subvention, export factoring, and credit guarantees to small exporters. 

Niryat Disha, with ₹14,659 crore, will focus on areas such as quality certification, international branding, packaging, trade fairs, warehousing, and logistics. Both parts are meant to make export processes easier and improve the participation of smaller firms in global markets.

Credit Guarantee Scheme for Exporters

The Credit Guarantee Scheme for Exporters will run until March 31, 2026. It will offer collateral-free credit and additional working capital of up to 20% of the sanctioned export limit, with a full government guarantee for loans up to ₹50 crore. The Department of Financial Services will implement it through the National Credit Guarantee Trustee Company Limited (NCGTC).

Export-oriented sectors employ around 45 million people and contribute nearly 45% of India’s exports. The new measures are for easing liquidity pressure and supporting exporters dealing with trade-related disruptions.

Read More: Japan to Raise Visa and Departure Fees to Tackle Overtourism!

Conclusion

The ₹45,060 crore package will extend financial and operational support to exporters, especially MSMEs, over the next few years.

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