New Delhi witnessed a major push for India’s export sector on Friday as Union Commerce and Industry Minister Piyush Goyal unveiled seven additional initiatives under the Export Promotion Mission (EPM). This ambitious program, spearheaded by the Department of Commerce, aims to empower Micro, Small, and Medium Enterprises (MSMEs) to conquer global markets with confidence.
These new measures directly tackle key hurdles faced by Indian exporters, from financing gaps to logistical nightmares. By fostering inclusive growth and sharpening India’s competitive edge worldwide, the government is laying the groundwork for a export boom that reaches every corner of the country.
The seven initiatives include support for alternative trade financing via export factoring, credit assistance for e-commerce exporters, aid for emerging export opportunities, the TRACe platform for trade regulations and compliance, facilitation of logistics, overseas warehousing, and fulfillment (FLOW), logistics interventions for freight and transport (LIFT), and integrated support for trade intelligence (INSIGHT).
Under export factoring support, MSMEs gain access to affordable working capital. Eligible transactions through RBI/IFSCA-recognized entities qualify for a 2.75% interest subsidy on factoring costs, capped at ₹50 lakh per MSME annually. A digital claims portal ensures transparency and swift disbursals.
E-commerce exporters get a lifeline with structured credit facilities backed by interest subsidies and partial loan guarantees. Direct e-commerce credit offers up to ₹50 lakh with 90% guarantee coverage, while overseas inventory credit provides up to ₹5 crore with 75% coverage. An annual interest subsidy of 2.75% applies, limited to ₹15 lakh per applicant.
For venturing into high-risk or untapped markets, shared risk and credit instruments build exporter confidence and liquidity. TRACe reimburses 60-75% of testing, inspection, and certification costs, up to ₹25 lakh per IEC yearly.
FLOW eases access to global warehousing and e-commerce hubs, subsidizing 30% of approved project costs for up to three years. LIFT cuts logistics costs in low-export-intensity districts with 30% freight reimbursement, up to ₹20 lakh per exporter per financial year. INSIGHT bolsters capacity building, district-level facilitation, and trade intelligence systems with up to 50-100% funding support.
With these additions, 10 out of 11 EPM measures are now operational, building on existing schemes like market access aid and pre/post-shipment credit subsidies. This comprehensive strategy promises to supercharge MSME exports, propelling India towards its ambitious global trade goals.