The global trade landscape is facing significant challenges, with rising protectionism, supply chain disruptions, and stricter regulatory requirements making it harder for smaller exporting nations to stay competitive. In the first nine months of FY 2024–25, India’s merchandise exports grew by just 1.6%, while imports rose by 5.15%, widening the trade deficit. With MSMEs contributing nearly 45% of India’s total exports, strengthening their global competitiveness has become crucial. To address these challenges, the Government of India introduced the Export Promotion Mission (EPM) in the 2025–26 Union Budget.
This article explores what the Export Promotion Mission is, why it matters, how it is structured, and how exporters can maximise its benefits, along with key limitations and practical guidance for businesses looking to expand globally.
What is the Export Promotion Mission?
The Export Promotion Mission (EPM) is a centrally sponsored initiative approved by the Union Cabinet in November 2025 and announced in the Union Budget 2025–26. It will run for six years, from FY 2025–26 to FY 2030–31, with a budgetary outlay of ₹25,060 crore. The mission aims to consolidate multiple export‑support schemes into a single, outcome‑based and digitally enabled framework. Its key characteristics include:
- Unified digital platform: The Directorate General of Foreign Trade (DGFT) will manage an end‑to‑end digital system for applications, approvals and disbursals. This is intended to reduce red tape and increase transparency.
- Whole‑of‑government coordination: The Department of Commerce, the Ministry of MSME, the Ministry of Finance, commodity boards, financial institutions, export promotion councils and state governments all participate in the mission’s governance.
- Integration of financial and non‑financial support: EPM operates through two sub‑schemes, Niryat Protsahan (financial interventions) and Niryat Disha (non‑financial interventions), to address both capital and capability gaps.
Objectives and Rationale
EPM’s goals are a result of both the structural voids in the Indian export system and the Government’s vision to bring about inclusivity within exporting. The official goal is to:
- Facilitate affordable trade finance for MSMEs and first-time exporters, so they have access to pre- and post-shipment credit.
- Increase MSME participation in the global economy, specifically in labor-intensive industries.
- Support export-readiness by providing targeted assistance with regard to quality standards, certifications, and compliance with regulations.
- Provide greater access to international markets through branding, promotional and trade facilitation efforts.
- Maintain an expanded geographic base of exports by providing support to exporters from non-traditional and low-export intensity districts.
- Create employment and add value to manufactured goods and services.
Why is EPM necessary?
India’s exporters are facing an array of problems:
- Barriers to trade protectionism: Other countries are increasing tariffs and enforcing stricter standards against India; for example, the US raised duties on some of India’s exports to 50% in August 2025.
- The trade finance gap: Many micro and small enterprises lack access to affordable credit to fulfil and accept large orders.
- Logistical and compliance barriers: Poor transportation, insufficient warehouse space and higher costs associated with certification all add to the costs of exporting and slow down shipments.
Existing schemes (Interest Equalization Scheme and the Market Access Initiatives) exist independently of one another and are paper-based. Therefore, by combining these existing programs into a mission-mode program that utilizes digital means of delivery, EPM will help reduce export complexity and enhance export coordination.
Components of the Mission
Niryat Protsahan (Financial Enablers)
This sub-scheme focuses on improving access to affordable trade finance, enhancing liquidity, and reducing financial risks for exporters—especially MSMEs. Key interventions include:
- Interest subvention on export credit (Pre & Post Shipment): Exporters can benefit from subsidised interest rates, typically 2–3% lower than standard rates.For example, if your export finance is ₹5 crore, this could translate into annual savings of ₹10–15 lakh in interest costs.
- Collateral guarantee support for MSMEs: The scheme may provide guarantee cover of up to 75–85% of the loan value, reducing the need for heavy collateral.While not a direct cash benefit, it improves loan eligibility and access to credit, especially for small exporters.
- Alternative trade instruments: Factoring and receivable discounting solutions can reduce financing costs by 1–2% and improve cash flow.These instruments help shorten the working capital cycle by 30–60 days, enabling faster business rotation.
- Credit support for e-commerce exporters: Dedicated credit facilities, including export credit cards and structured funding, are expected in the range of ₹10–50 lakh.This enables online exporters (Amazon, Shopify, etc.) to scale operations without heavy dependence on traditional bank loans.
- Support for Emerging Export Opportunities : The scheme may include risk-sharing mechanisms or partial insurance, offering up to 50–60% risk coverage for exports to emerging markets (Africa, LATAM, CIS).This reduces financial risk and encourages expansion into high-growth but less-explored regions.
Niryat Disha (Non‑Financial Enablers)
This stream addresses non‑financial bottlenecks by providing targeted assistance for market readiness:
- TRACE (Trade Regulations, Accreditation & Compliance Enablement)
Provides reimbursement of 50–75% of testing, inspection, and certification costs, subject to scheme caps.For example, if CE or FDA certification costs ₹20 lakh, exporters may receive ₹10–15 lakh support, reducing the burden of meeting international standards. - MAS (Market Access Support – Buyer Seller Meets & Exhibitions)
Supports participation in international trade fairs and exhibitions with 50–70% reimbursement of stall and travel costs.This can lead to savings of ₹2–5 lakh per exhibition, making global market entry more accessible. - FLOW (Facilitating Logistics, Overseas Warehousing & Fulfilment)
Offers 30–50% support on overseas warehousing, fulfilment, and logistics costs.Depending on scale, exporters can save ₹5–20 lakh annually, improving last-mile delivery and global distribution efficiency. - LIFT (Logistics Interventions for Freight & Transport)
Provides freight assistance or subsidies based on distance/container movement.This may reduce overall logistics costs by 2–5%, especially beneficial for exporters in low-export-intensity districts. - INSIGHT (Integrated Support for Trade Intelligence & Facilitation)
Enables access to government-backed trade intelligence platforms, market research, and export data systems.While indirect, it helps businesses reduce failed market entry costs and make smarter export decisions. - Branding & Packaging Development Support (Additional Enabler)
Likely reimbursement of 50–60% of branding, packaging, and product positioning costs.For instance, if rebranding costs ₹15 lakh, exporters may receive ₹7–9 lakh support, improving global appeal and competitiveness.
These interventions are designed to help MSMEs meet international standards, navigate logistics challenges and participate in trade fairs and buyer‑seller meets.
Benefits for Exporters
When it is applied to a business, EPM can create real economic advantages:
- Lower cost of capital (through subsidised loan rates and factoring) – Exporters will have lower debt service payments and improved cash flows.
- Increased access to global markets – Exporters are able to increase their marketing efforts through subsidies for branding, packaging and international exhibition activities and therefore become more competitive in overseas markets.
- Compliance assistance – Exporters are able to be reimbursed for certification and testing fees associated with exporting internationally which allows them to ensure that their product meets the required international quality levels.
- Improved logistics – Exporters can reduce freight costs by using export subsidies for storage and inland transportation and therefore improve the reliability of their supply chain.
- Development of capacity – Exporters can develop their capabilities through training programs and support for attendance at trade shows. This will help build both the exporter’s knowledge and network of relationships.
Example scenario
The handicraft manufacturers of a low-export-intensity district have access to subsidized interest rates on the credit and factoring of exports as handicraft manufacturers, through Niryat Protsahan and Niryat Disha, respectively. They are able to acquire reimbursement for costs associated with certification (i.e., CE marking); branding support for the packaging of their products, and participation in international trade fairs. Additionally, the handicraft manufacturers are entitled to reimbursement for inland transportation (LIFT) to transport their products from their distant location to the nearest port. In total, these multiple forms of support reduce the handicraft manufacturers’ costs of entering global markets and increase their competitive position.
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Comparison with Existing Schemes
The EPM program does not displace all existing export promotion programs but will provide an integrated platform for exporting businesses to access the services provided by such programs. Below is a general comparison of the two:
| Scheme | Purpose | Target audience | Benefits | Implementing authority |
|---|---|---|---|---|
| EPM | Consolidated mission with financial (Niryat Protsahan) and non‑financial (Niryat Disha) support | MSMEs, labour‑intensive sectors, exporters in remote districts | Interest subvention, export factoring, certification reimbursements, branding, logistics subsidies | DGFT (digital platform) |
| RoDTEP | Refunds embedded central/state/local duties on exported products | Goods exporters, including MSMEs | Reduces export costs by remitting unrebated taxes | DGFT via ICEGATE |
| EPCG | Allows import of capital goods at zero or reduced customs duty | Manufacturers needing machinery to produce export goods | Reduces capital investment cost | DGFT |
| IES (Interest Equalisation Scheme) | Offers pre‑ and post‑shipment credit to exporters at reduced interest rates | MSME manufacturers and exporters in select sectors | Lowers interest rate on export credit | RBI |
EPM complements these schemes by adding non‑financial support and by providing a unified application and monitoring platform.
Challenges and Criticisms
Despite its ambitions, the Export Promotion Mission faces significant hurdles:
- Lack of detailed guidelines: Many operational details, eligibility criteria, application procedures and disbursal timelines, have not yet been published, leaving exporters uncertain.
- Funding constraints: Although the mission’s total outlay is ₹25,060 crore, this amounts to less than ₹4,200 crore per year, similar to existing schemes’ budgets. It is unclear whether this amount can support all proposed interventions.
- Institutional capacity: Assigning DGFT to administer credit and financial schemes traditionally handled by banks raises concerns about capability and oversight.
- Policy continuity: Previous export schemes were often disrupted or modified. Exporters need assurance that EPM will remain consistent throughout its six‑year term.
How to Apply and Prepare
As detailed guidelines are still forthcoming, exporters should monitor notifications from the DGFT and Ministry of Commerce. In the meantime, businesses can take the following preparatory steps:
- Obtain/renew an IEC code and register on the DGFT portal. Keep KYC documents, financial statements and export invoices ready.
- Understand which interventions apply to your business (e.g., factoring for working capital vs. certification reimbursement).
- Strengthen export readiness: Standardise product specifications, implement quality checks and maintain accurate documentation. These practices reduce delays and improve eligibility for support.
- Plan logistics and packaging: For remote exporters, identify warehousing and transport partners who may benefit from FLOW and LIFT subsidies. Ensure packaging meets destination‑market requirements.
- Engage with export promotion councils and banks: Consult with councils (e.g., the Federation of Indian Export Organisations) and financial institutions to stay informed about application timelines and funding opportunities.
Global Context and Future Outlook
In terms of timing, EPM is entering a period of significant change globally in international trade. As such, most national export promotion organizations around the world have moved their emphasis toward three new areas: Sustainability, Service Exports, and Regional Supply Chain Development. Ultimately, the success of the Mission will be dependent upon its ability to respond to emerging new priorities that include Green Compliance (i.e. the European Union’s Carbon Border Adjustment Mechanism) and an increasing focus by national governments on Digital and Service Exports. Commerce Minister Piyush Goyal has indicated his desire to link export growth to sectors including Data Centres, Artificial Intelligence, and Quantum Computing, therefore those involved in these emerging industries should expect to see specific support for them.
FAQ
1. Who implements the Export Promotion Mission?
The DGFT is the implementing agency, supported by the Department of Commerce, the Ministry of MSME, the Ministry of Finance and export promotion councils.
2. How long will the mission run?
EPM is planned for six years, from FY 2025–26 to FY 2030–31, with a total outlay of ₹25,060 crore.
3. How does EPM help MSMEs?
It provides subsidised credit, export factoring, certification reimbursements, branding support and logistics subsidies to reduce costs and improve competitiveness. The mission also targets non‑traditional districts and labour‑intensive sectors.
4. Is EPM WTO‑compliant?
Yes. The mission does not provide direct export subsidies but instead focuses on trade facilitation, capacity building and market access, which are allowed under WTO rules.
5. What’s the difference between EPM and RoDTEP/EPCG?
RoDTEP refunds embedded taxes on exported goods, EPCG reduces customs duty on capital goods and the Interest Equalisation Scheme lowers interest rates on export credit. EPM brings these and other interventions under one mission, adding non‑financial support and a digital platform.
Conclusion
The Export Promotion Mission (EPM) has been one of India’s most serious attempts so far to develop export incentive programs and provide a digital support system for exporters. However, if EPM can be funded adequately, as well as have clear rules and coordination, it may enable many small- and medium-sized enterprises (MSMEs), as well as many first-time exporters, to find exporting easier. Additionally, the mission provides financing and building capabilities that address the two major barriers to exporting: access to finance and compliance with regulations.
However, exporters must remain practical and proactive. While the mission carries a significant budgetary push, detailed implementation guidelines are still evolving. Businesses should streamline their internal processes, clearly understand the scope of each scheme, stay updated with policy notifications, and actively engage with trade stakeholders. In this dynamic environment, partnering with experienced logistics and compliance experts like Afleo Group can make a critical difference. With the right strategic guidance, robust documentation, and in-depth market knowledge, exporters can not only navigate policy changes effectively but also position themselves strongly in global markets.