India launches ₹25,000 crore export mission to counter US tariff blow

Reeling under the impact of steep US tariffs that have slashed export orders and slowed shipments, the Union Cabinet on November 12 approved a six-year, ₹25,060 crore Export Promotion Mission (EPM) aimed at reviving India’s trade momentum and shielding vulnerable sectors from global shocks.

The mission, first announced in the Union Budget, will run from FY 2025–26 to FY 2030–31 and seeks to consolidate key schemes like the Interest Equalisation Scheme and the Market Access Initiative under a single, digitally driven export framework.

The Cabinet also cleared a Credit Guarantee Scheme for Exporters (CGSE), enabling collateral-free loans of up to ₹20,000 crore to exporters—especially micro, small, and medium enterprises (MSMEs)—through 100% coverage by the National Credit Guarantee Trustee Company Ltd.

“The mission focuses on credit access, reduced financing costs, and support for MSME exporters to expand into new markets,” said Railway and IT Minister Ashwini Vaishnaw, briefing the media after the Cabinet meeting.

Exports hit hard by US tariff shock

The move comes amid mounting pressure on Indian exporters after 50% US tariffs came into effect on August 27, making India one of the most heavily taxed trade partners globally after China’s deal with Washington.

In September, shipments to the US dropped 12%, while engineering goods exports—accounting for nearly a quarter of India’s total exports—fell 9.4%, official data showed. The US remains India’s largest single market for several categories, including textiles, apparel, and gems & jewellery.

According to the Confederation of Indian Textile Industry (CITI), textile and apparel exports to the US declined over 10% year-on-year in September 2025, underscoring the severe hit to India’s export-dependent sectors.

Mission to support jobs, diversification, and branding

Under the EPM, the government will extend targeted support to sectors most affected by tariff hikes and non-tariff barriers, including textiles, leather, gems and jewellery, engineering goods, and marine products.

Vaishnaw said the mission would also help exporters tackle non-tariff barriers, such as stringent compliance norms, certifications, and technical standards imposed by importing countries. “It will also cover logistics, branding, packaging, and market acquisition costs for MSMEs,” he said.

Industry bodies welcomed the move, calling it a “timely, structural intervention” to strengthen India’s global competitiveness.

“By uniting financial and non-financial interventions under one umbrella, the mission offers continuity, flexibility, and responsiveness to global trade dynamics,” said S C Ralhan, President of the Federation of Indian Export Organizations (FIEO).

CITI Chairman Ashwin Chandran added that the mission would help the textile and apparel sector become “globally competitive and well-positioned to leverage opportunities under free trade agreements.”

The Gems and Jewellery Export Promotion Council (GJEPC) said measures such as interest subvention and expanded trade fair support would particularly benefit MSMEs and first-time exporters, boosting India’s global outreach and employment base.

A lifeline for export resilience

Officials described the mission as a “comprehensive and flexible framework” to sustain export growth amid protectionist headwinds. It aims to restore confidence among exporters, protect jobs, and diversify India’s trade portfolio across new markets and emerging sectors.

With global trade uncertainty deepening and tariff barriers rising, the government’s new mission is being seen as both a shield and a springboard—to protect exporters from current shocks while preparing India’s export economy for the next decade.