GTRI Weighs In: Rs 25,060-Cr Export Mission’s Promise and Pitfalls

The Rs 25,060-crore Export Promotion Mission (EPM), approved by the Union Cabinet, aspires to consolidate fragmented export schemes under a single, digitized framework to enhance India’s export competitiveness from FY 2025-26 to FY 2030-31. GTRI lauds the mission as a major boost, particularly targeting MSMEs, first-time exporters, and labour-heavy sectors like textiles, leather, gems, engineering goods, and marine products.

EPM’s two pillars, Niryat Protsahan and Niryat Disha, emphasize making trade finance affordable through interest support, export factoring, credit guarantees, and improving non-financial aspects such as branding, compliance, and logistics.

Despite the ambitious agenda, GTRI flags key constraints: the total outlay averages less than Rs 4,200 crore annually, while previous schemes like Interest Equalisation Scheme alone consumed over Rs 3,500 crore last year. Moreover, delays in paying out under older programs like MAI and IES have left exporters unsupported amid a challenging global trade environment, accentuated by US tariffs.

Institutional challenges persist as DGFT transitions into the implementing agency from banks, potentially slowing approvals and disbursements. GTRI stresses the need for rapid issuance of clear guidelines, adequate funding, and coordination mechanisms for impactful implementation.

Key Highlights:

Rs 25,060 crore allotted for Export Promotion Mission over six years.

Focus on MSMEs, first-time exporters, labour-intensive sectors under two pillars: Niryat Protsahan and Niryat Disha.

Funding gaps with annual budget less than Rs 4,200 crore; IES cost alone exceeded Rs 3,500 crore last year.

Delays in payouts under old schemes MAI and IES leave exporters vulnerable.

Institutional shift to DGFT as implementing agency poses operational challenges.

GTRI calls for swift guidelines, adequate funding, and coordination for successful rollout.

Sources: GTRI, Deccan Chronicle, Times of India, Tribune India