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Informist, Wednesday, Nov. 12, 2025

 

--Cabinet OKs expansion of credit guarantee scheme for INR 200 bln 
--Cabinet OKs INR 250.60 bln export promotion mission for 6 yrs 
--Govt: Credit guarantee scheme for exporters to run till Mar 31, 2026

 

NEW DELHI – The Union Cabinet on Wednesday approved the much-talked-about Export Promotion Mission to strengthen India's export ecosystem with an outlay of INR 250.60 billion. The mission will run for six years till 2030-31 (Apr-Mar). The Union Cabinet, chaired by Prime Minister Narendra Modi, also approved INR 200 billion for the expansion of credit guarantee scheme, under which, lending institutions will extend collateral-free credit support to both micro, small, and medium enterprises and non-MSME exporters.

 

The government has been working on these schemes for considerable amount of time as geopolitical disruptions have dampened exports from the country. Exporters have been batting for the schemes especially after US President Donald Trump announced sweeping tariffs on Indian exports to the US, India's top export destination.

 

The Export Promotion Mission was announced in the Budget for FY26 with an outlay of just INR 22.50 billion to boost export competitiveness, particularly for MSMEs, first-time exporters, and labour-intensive exporters. The plan will operate through two sub-schemes – Niryat Protsahan and Niryat Disha.

 

Under Niryat Protsahan, which has an outlay of INR 104.01 billion, the government will improve exporters' access to affordable trade finance through a range of instruments such as interest subvention, export factoring, collateral guarantees, credit cards for e-commerce exporters, and credit enhancement support for diversification into new markets.

 

Under Niryat Disha – with an outlay of INR 146.59 billion – the government will focus on non-financial enablers that enhance market readiness and competitiveness, including export quality and compliance support, assistance for international branding, packaging, and participation in trade fairs, export warehousing and logistics, inland transport reimbursements, and trade intelligence and capacity-building initiatives.

 

While exporters were long seeking the introduction of the scheme, the broad understanding was that the government will launch it once the trade deal with US is finalised. However, the Cabinet announced both the welfare schemes for exporters without the trade deal in place. "All progress in India-US trade talks have been considered in making the decisions," Information and Broadcasting Minister Ashwini Vaishnaw said while announcing the schemes. 

 

The US has slapped an additional 25% punitive tariff on Indian goods, on top of a 25% reciprocal tariff, citing New Delhi's continued purchases of Russian crude oil. Trade negotiations between both the countries hit a roadblock after India resisted opening its vast agricultural and dairy sectors.

 

The US is India's top export destination, accounting for nearly 20% of India's total exports. The tariffs cast a long shadow on over $50 billion of Indian exports from labour-intensive sectors like textiles, gems and jewellery, marine products, furniture and bedding. In FY25, India exported goods worth $86.51 billion to the US and had a trade surplus of $40.82 billion. Expressing optimism about the trade deal, US President Trump Tuesday said, "we're getting close."  

 

Under the credit guarantee scheme, to be implemented by the finance ministry's Department of Financial Services through National Credit Guarantee Trustee Co. Ltd., the government wants to enable collateral-free credit access to strengthen liquidity, ensure smooth business operations, reinforce India's progress towards achieving the $1 trillion export target, it said in a release. A management committee formed under the chairmanship of Financial Services Secretary M. Nagaraju will oversee the progress and implementation of the scheme. The scheme will run till Mar. 31, 2026, Vaishnaw said. 

 

"It is important to extend enhanced financial assistance and adequate time to exporters for diversifying their markets and enhance global competitiveness of Indian exporters," the government said. "Accordingly, proactive government intervention to provide additional liquidity support will ensure business growth and also enable expansion of markets."  End

 

US$1 = INR 88.63

 

Reported by Priyasmita Dutta

Edited by Ashish Shirke

 

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