India plans Rs 20,000-crore Export Promotion Mission

By Admin

06 Aug, 2025

India is preparing to roll out a massive ₹20,000-crore Export Promotion Mission by September 2025 to safeguard its exporters from rising global trade uncertainties, including steep tariffs, regulatory challenges, and shifting market dynamics. The move is a bold attempt to redefine India’s export landscape, enabling domestic businesses particularly MSMEs to thrive amid mounting external pressures.

A Strategic Response to Global Pressures

Amid a global climate of trade protectionism, India’s exporters have faced increasing headwinds. Most recently, the US imposed a blanket 25% tariff on Indian-origin goods effective August 7, placing India at a disadvantage compared to rival exporting nations like Vietnam, Bangladesh, Pakistan, and Turkey, where tariffs remain in the 15–20% range. With the US accounting for nearly half of India's $85 billion annual exports, this steep hike could significantly affect trade flows.

Recognizing the urgency of the situation, the Indian government is crafting a long-term plan that spans five to six years. Officials say the Export Promotion Mission is being jointly developed by the ministries of commerce and industry, MSME, and finance, and is likely to be finalized by the end of August.

Key Pillars of the Mission

The mission will be anchored around five strategic components:

1. Trade Finance: Boosting access to credit with flexible, collateral-free loans for MSMEs based on their creditworthiness.
   
   

2. Non-Trade Finance: Addressing regulatory challenges, standards compliance, and market access issues to reduce friction in overseas trade.
   
   

3. Brand India Promotion: Elevating Indian brands to global stature, taking cues from successful country-led branding strategies in Japan, Korea, and Switzerland.
   
   

4. Ecommerce and Warehousing Hubs: Establishing ecommerce zones and robust logistics infrastructure to enable seamless international trade, especially for smaller exporters.
   
   

5. Trade Facilitation: Enhancing ease of doing business through policy support and cross-ministerial coordination.
   
   

Ajay Sahai, Director General of the Federation of Indian Export Organisations (FIEO), welcomed the initiative, stating, “It will be positive if such a large fund can support our exports in these challenging times.”

Empowering MSMEs and District-Level Exports

A crucial focus of the mission is supporting MSME exporters who form the backbone of India’s export sector with partially or fully collateral-free loans and district-level interventions to develop export-focused local economies. The initiative also promotes the creation of ecommerce hubs to improve digital access to global markets, a move seen as vital for expanding India's export footprint beyond traditional sectors.

Toward Global Recognition of Brand India

Beyond economics, the mission seeks to strengthen Brand India on the global stage. Indian products, known for their diversity and quality, will be actively positioned in international markets through branding and marketing efforts. This is expected to aid exporters in maintaining competitiveness and building resilience.

What’s Next?

According to an official familiar with the matter, “The mission will implicitly help exports bound for the US, and wherever our exports go. We will have to close it by August so that it is operational by September.”

With the government accelerating efforts to finalize the Export Promotion Mission, India is clearly signalling its intent to protect and empower its export community. If implemented effectively, this initiative could serve as a turning point for India’s global trade strategy one that not only counters immediate challenges but also lays the foundation for sustainable long-term growth.