Context : The Union Cabinet has approved the Export Promotion Mission (EPM) and the Credit Guarantee Scheme for Exporters (CGSE), marking a major policy push to boost India’s export competitiveness, particularly for MSMEs.
1. Export Promotion Mission (EPM)
- Outlay and Duration: The mission has a total outlay of ₹25,060 crore, spanning from FY 2025–26 to FY 2030–31. It consolidates previous schemes like the Interest Equalisation Scheme (IES) and Market Access Initiative (MAI).
- Core Objectives:
- To enhance credit availability and reduce its cost, particularly for MSMEs.
- To address non-tariff barriers, logistical bottlenecks, branding, and market access challenges.
- To facilitate diversification into new and high-risk markets.
- Implementation Framework: Managed by the Directorate General of Foreign Trade (DGFT), the mission operates through two sub-schemes:
- Niryat Protsahan (₹10,401 crore): Focuses on financial interventions, including interest subvention, export factoring, and credit guarantees to improve trade finance.
- Niryat Disha (₹14,659 crore): Focuses on non-financial support, such as international branding, packaging, trade fairs, logistics, and capacity building.
- Operational Nature: Provides a digitally driven, comprehensive, and flexible framework to meet contemporary trade requirements.
2. Credit Guarantee Scheme for Exporters (CGSE)
- Objective: To provide exporters with additional, collateral-free working capital (up to 20% of sanctioned limits).
- Mechanism: Offers a 100% guarantee to lending institutions, managed by the National Credit Guarantee Trustee Company (NCGTC).
- Beneficiaries: Targets all exporters, including MSMEs.
- Timeline and Impact: The scheme is valid until March 2026 and is expected to enhance liquidity and support business continuity for exporters.
