The Union Cabinet has approved a new Credit Guarantee Scheme for Exporters, providing 100% credit guarantee to exporters, including MSMEs. The initiative aims to unlock up to ₹20,000 crore in additional credit, strengthening liquidity and enabling exporters to access finance with greater ease. By ensuring financial stability and expanding lending opportunities, the scheme is expected to play a crucial role in helping India achieve its $1 trillion export target, while reinforcing the vision of Aatmanirbhar Bharat.
Launch of the Export Promotion Mission (EPM)
- In another major decision, the Cabinet has launched the Export Promotion Mission (EPM) with an outlay of ₹25,000 crore, as announced in the Union Budget 2025–26.
- The EPM aims to establish a comprehensive, flexible, and digitally enabled framework for promoting exports between FY 2025–26 and FY 2030–31.
- This flagship initiative will consolidate multiple export promotion schemes into a single, outcome-driven mechanism designed to respond swiftly to global trade challenges.
- The EPM will prioritize support for MSMEs, first-time exporters, and labour-intensive sectors, offering tailored interventions to enhance their competitiveness in international markets.
- By promoting innovation, capacity building, and market access, the mission seeks to integrate more Indian businesses into global value chains, helping them tap into emerging opportunities worldwide.
Boost to domestic production of critical minerals
- The Cabinet has also approved a revision of royalty rates for minerals such as caesium, graphite, rubidium, and zirconium, which will encourage the auctioning of new mineral blocks.
- This move will boost domestic production of critical minerals like lithium, tungsten, and niobium—vital for high-tech industries and green technologies. Increasing domestic supply will reduce import dependence, strengthen India’s supply chain resilience, and generate new employment opportunities.
Building a globally competitive export ecosystem
- Together, these measures mark a strategic shift in India’s export policy framework, combining financial empowerment, structural reform, and resource security.
- The new Credit Guarantee Scheme and EPM are expected to significantly enhance India’s export competitiveness, diversify trade partnerships, and position the country as a trusted global hub for manufacturing and exports in the coming decade.
Government initiatives to boost India’s exports
The Government of India has launched several flagship initiatives and policy measures to strengthen the country’s export ecosystem and enhance global competitiveness. Key among them are-
- Foreign Trade Policy (FTP) 2023: Focuses on ease of doing business, digitization, and long-term export growth through simplified procedures and paperless systems.
- Remission of Duties and Taxes on Exported Products (RoDTEP): Refunds embedded taxes and duties to make Indian exports more competitive globally.
- Rebate of State and Central Taxes and Levies (RoSCTL): Provides rebates on state and central taxes for the apparel and textile sectors to enhance export profitability.
- Production-Linked Incentive (PLI) Schemes: Encourages domestic manufacturing and exports across sectors such as electronics, textiles, pharmaceuticals, and renewable energy.
- Districts as Export Hubs (DEH): Promotes local economic growth by identifying and supporting district-level products with high export potential.
- Market Access Initiative (MAI): Provides financial assistance for market research, trade fairs, and brand promotion in international markets.
- Export Credit Guarantee Corporation (ECGC): Offers credit risk insurance and financial support to exporters, ensuring smooth international trade transactions.
- Target of $1 Trillion Exports: All these initiatives collectively aim to strengthen India’s global trade presence and achieve the $1 trillion export target by the end of the decade.
