In a significant move to bolster its export economy, the Indian government has launched a comprehensive ₹25,060-crore initiative specifically designed to empower Micro, Small, and Medium Enterprises (MSMEs). The Export Promotion Mission (EPM) aims to tackle long-standing challenges of high credit costs and limited market access, providing a structured five-year roadmap from FY26 to FY31.
A Dual-Pronged Strategy: Finance and Market Access
The newly announced mission is structured around two core sub-schemes, each addressing a critical bottleneck for small exporters. The first, named Niryat Protsahan, is allocated ₹10,400 crore and focuses squarely on financial support. The second, Niryat Disha, with a ₹14,660 crore outlay, targets the non-financial barriers that often keep MSMEs from reaching international buyers.
Under Niryat Protsahan, MSME exporters will benefit from two key financial interventions. An interest support scheme offers a base subvention of 2.75% on pre- and post-shipment rupee export credit. This support applies to a wide range of products, covering about 75% of India’s tariff lines where MSMEs are highly active. Furthermore, an export credit collateral guarantee scheme, implemented with the Credit Guarantee Fund Trust for Micro and Small Enterprises, provides banks with a guarantee cover of up to 85% for micro and small exporters. This measure is designed to encourage banks to lend more freely by mitigating their perceived risk.
Bridging the Gap to Global Buyers
The Niryat Disha sub-scheme introduces a more strategic approach to market access through its Market Access Support (MAS) component. Unlike earlier, more ad-hoc efforts, MAS mandates structured planning with a rolling three-to-five-year calendar of international trade events. It supports MSME participation in global trade fairs, buyer-seller meets, and targeted trade delegations.
A crucial feature is the mandatory 35% MSME participation in government-supported events, ensuring the scheme's benefits reach its intended audience. To lower entry barriers for the smallest players, exporters with a turnover of up to ₹75 lakh will be eligible for partial airfare support. All processes, from application to approval, will be handled through a centralized online portal to enhance transparency and reduce delays.
Why This Massive Push Matters Now
The timing of the EPM is critical. Indian exports face a challenging global environment marked by rising tariffs and geopolitical shifts. Notably, the US has imposed duties as high as 50% on certain Indian goods. Despite these headwinds, India's trade has shown resilience. Merchandise exports for April–November 2025–26 reached $292.07 billion, showing growth from the previous year.
Given that MSMEs contribute roughly 45% of India’s total exports, their success is vital for national economic growth. The sector is massive, with approximately 74.4 million registered MSMEs employing around 326 million people. Nearly 15.6 million are in manufacturing, 26.5 million in services, and close to 32.3 million in trading. States like Maharashtra, Uttar Pradesh, and Tamil Nadu host the largest concentrations of these enterprises.
Industry representatives have welcomed the move. Pankaj Chadha, Chairman of the Engineering Export Promotion Council (EEPC), stated that the interventions will help lower finance costs for labour-intensive MSMEs, making them more competitive globally. He did, however, note a concern, pointing out that the 'iron and steel' sector (Chapter 72) was excluded from the interest support scheme's positive list and hoped for its inclusion in future revisions.
By simultaneously addressing the high cost of credit and the difficulty of finding overseas customers, the Export Promotion Mission represents a holistic attempt to integrate India's vast MSME base deeper into global value chains, with potential wide-reaching impacts on jobs, exports, and overall economic momentum.
