🗞️ Why in News The government launched 7 new interventions under India’s Export Promotion Mission (EPM) — a ₹25,060 crore, 6-year programme — targeting MSMEs, e-commerce exporters, and geographically disadvantaged districts through a two-stream “Niryat” framework.
What is the Export Promotion Mission?
The Export Promotion Mission (EPM) is a Government of India initiative announced in Union Budget 2024-25, operationalised by the Ministry of Commerce and Industry (DPIIT/DGFT). Its core objective: accelerate India’s merchandise exports, with a special focus on Micro, Small, and Medium Enterprises (MSMEs) that face structural barriers to export participation — access to credit, global certification costs, freight disadvantages, and marketing reach.
Key parameters:
- Total outlay: ₹25,060 crore
- Duration: 6 years — FY 2025-26 to FY 2030-31
- Structure: Two streams — Niryat Protsahan + Niryat Disha
- Coverage: 40+ countries including Australia, Canada, Germany, Japan, UK, UAE
The Niryat Framework: Two Streams
1. Niryat Protsahan (Financial Enablers)
Financial support mechanisms that reduce the cost of exporting:
| Intervention | Detail |
|---|---|
| Export Factoring | 2.75% interest subvention; ₹50 lakh annual cap; helps MSMEs access working capital against export receivables |
| E-commerce Export Credit | ₹50 lakh (90% guarantee) to ₹5 crore (75% guarantee) — credit for B2C exporters on global platforms |
| LIFT (Logistics for International Freight Transportation) | 30% freight reimbursement for exporters in geographically disadvantaged districts (hilly/remote areas far from ports) |
| Overseas Warehousing | Support for setting up warehouses abroad to enable just-in-time delivery in key markets |
2. Niryat Disha (Non-Financial Enablers)
Capacity building and market access support:
| Intervention | Detail |
|---|---|
| TRACE (Trade Certification & Testing) | 60-75% reimbursement for international certification, testing, and quality compliance costs |
| Overseas Branding | Co-funding for brand building in priority export markets |
| MSME Capacity Building | Training, mentoring, and handholding for first-time exporters |
India’s Export Context
India’s merchandise exports stood at approximately USD 437 billion (FY 2023-24), making India the world’s 16th largest exporter. The government’s target is USD 1 trillion in merchandise exports by 2030 — requiring more than doubling current exports in under a decade.
MSMEs and exports: MSMEs contribute approximately 45% of India’s total exports. However, most MSMEs participate as sub-suppliers to larger export houses rather than as direct exporters. The EPM aims to convert indirect exporters to direct exporters by reducing entry barriers.
FTA advantage: India’s FTAs (Free Trade Agreements) now cover nations accounting for 70% of global GDP — including the UAE-India CEPA (2022), India-Australia ECTA (2022), and negotiations underway for India-UK FTA, India-EU FTA, and Canada FTA. EPM’s 40+ country targeting aligns with these FTA markets.
Key Institutional Ecosystem
DGFT (Directorate General of Foreign Trade): Under Ministry of Commerce; administers India’s Foreign Trade Policy (FTP 2023), issues IECs (Importer Exporter Codes), and implements export promotion schemes.
ECGC (Export Credit Guarantee Corporation of India): PSU under Ministry of Commerce; provides credit insurance to exporters and banks against non-payment risks. EPM’s export credit guarantees (90-75%) are routed through ECGC.
Export Promotion Councils (EPCs): 14 EPCs (Leather, Gems & Jewellery, Chemicals, Engineering, etc.) + commodity boards (Spices Board, Coffee Board, Tea Board) facilitate sector-specific export promotion.
EXIM Bank: Export-Import Bank of India (under Ministry of Finance) — provides long-term finance for capital goods exports, project exports, and credit lines to foreign governments for purchasing Indian goods.
RoDTEP (Remission of Duties and Taxes on Exported Products): Introduced 2021 to replace MEIS; provides WTO-compliant tax refunds on embedded taxes in export goods.
Challenges for MSME Exporters
1. Credit access: MSMEs often lack collateral for trade finance. Export factoring and credit guarantees under EPM directly address this.
2. Certification costs: International quality standards (ISO, CE, FDA, BIS Export) cost lakhs — prohibitive for small units. TRACE’s 60-75% reimbursement reduces this barrier.
3. Logistics disadvantage: MSMEs in inland districts (Uttar Pradesh, Madhya Pradesh, Bihar, Rajasthan) face high freight costs to ports. LIFT’s 30% reimbursement improves competitiveness.
4. Digital export: India’s e-commerce export potential (cross-border B2C) is underdeveloped. India’s e-commerce exports were ~USD 5 billion in FY2023-24 vs. China’s ~USD 220 billion. The e-commerce credit intervention targets this gap.
5. Brand recognition: “Made in India” lacks premium perception in most categories (exceptions: yoga, Ayurveda, basmati rice, diamonds, gems). Overseas branding support aims to build category-level brand equity.
UPSC Relevance
Prelims: Export Promotion Mission (EPM) — ₹25,060 crore, 6 years; Niryat Protsahan (financial) + Niryat Disha (non-financial); LIFT (30% freight reimbursement); TRACE (certification support); ECGC; RoDTEP; DGFT; IEC code; Foreign Trade Policy 2023; India’s FTA coverage (70% global GDP); India’s merchandise exports (FY24 ~USD 437B); MSME share in exports (~45%). Mains GS-3: India’s export strategy; MSME role in exports; FTA utilisation; WTO compatibility of export subsidies; trade credit infrastructure. Interview: “India’s export target of USD 1 trillion by 2030 requires radical change in MSME export participation. What structural reforms would you prioritise beyond financial subsidies?”
📌 Facts Corner — Knowledgepedia
Export Promotion Mission (EPM):
- Outlay: ₹25,060 crore | Duration: FY 2025-26 to 2030-31 (6 years)
- Streams: Niryat Protsahan (financial) + Niryat Disha (non-financial)
- Target countries: 40+ (Australia, Canada, Germany, Japan, UK, UAE, others)
7 Key Interventions:
- Export Factoring: 2.75% interest subvention, ₹50 lakh annual cap
- E-commerce Credit: ₹50L (90% guarantee) → ₹5Cr (75% guarantee)
- TRACE: 60-75% reimbursement for testing/certification
- LIFT: 30% freight reimbursement for disadvantaged districts
- Overseas Warehousing
- Overseas Branding
- MSME Capacity Building
India’s Export Data:
- Merchandise exports FY24: ~USD 437 billion | World rank: ~16th
- Government target: USD 1 trillion merchandise exports by 2030
- MSME share in exports: ~45%
- India’s FTA coverage: 70% of global GDP
Key Export Institutions:
- DGFT: Directorate General of Foreign Trade (FTP, IEC codes) — Ministry of Commerce
- ECGC: Export Credit Guarantee Corporation (credit insurance) — Ministry of Commerce
- EXIM Bank: Long-term export finance — Ministry of Finance
- RoDTEP: WTO-compatible tax refund scheme (replaced MEIS, 2021)
India’s Key FTAs (Recent):
- UAE-India CEPA: February 2022 (most comprehensive bilateral FTA)
- India-Australia ECTA: April 2022
- India-UK FTA: Under negotiation
- India-EU FTA (BTIA): Under negotiation (resumed 2022 after 8-year gap)
Other Relevant Facts:
- Cross-border e-commerce exports: India ~USD 5B vs. China ~USD 220B (FY24)
- India’s top merchandise exports: Petroleum products, gems & jewellery, engineering goods, pharma, textiles
- 14 Export Promotion Councils + Commodity Boards (Spices, Coffee, Tea, Rubber, Tobacco)
Sources: GKToday, Drishti IAS