New Delhi witnessed a major step forward for India’s export ambitions on Friday as Union Commerce and Industry Minister Piyush Goyal unveiled seven additional initiatives under the Export Promotion Mission (EPM). This flagship program by the Department of Commerce is laser-focused on empowering Micro, Small, and Medium Enterprises (MSMEs) to conquer global markets.
These new measures tackle head-on the key hurdles Indian exporters face, from financing gaps to logistical nightmares. The goal is clear: foster inclusive export growth and cement India’s position as a global trade powerhouse. 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, FLOWS for overseas warehousing and fulfillment, LIFT for logistics in low-export districts, and INSIGHT for trade intelligence.
Take export factoring, for instance. It’s a game-changer for MSMEs needing affordable working capital. Through RBI/IFSCA-recognized entities, eligible transactions get a 2.75% interest subsidy on factoring costs, capped at ₹50 lakh per MSME annually. Everything’s processed digitally for speed and transparency.
E-commerce exporters aren’t left behind. Structured credit facilities come with interest subsidies and partial loan guarantees. Direct e-commerce credit offers up to ₹50 lakh with 90% guarantee coverage, while overseas inventory credit goes up to ₹5 crore with 75% coverage. Annual interest subsidy hits ₹15 lakh per applicant at 2.75%.
Emerging markets get a boost too, with shared-risk instruments building exporter confidence. TRACe reimburses 60-75% of testing, inspection, and certification costs, up to ₹25 lakh per IEC yearly. FLOWS subsidizes 30% of overseas warehousing projects for three years, LIFT covers 30% freight costs up to ₹20 lakh per exporter annually in underserved districts, and INSIGHT funds 50-100% of trade intel projects at district levels.
With these additions, 10 out of 11 EPM measures are now live, building on existing ones like market access aid and pre/post-shipment credit subsidies. This comprehensive push signals India’s unwavering commitment to MSME-led export surge, potentially unlocking billions in new trade revenues and creating jobs across the nation.