The Indian government has announced a ₹25,000 crore (US$ 2.85 billion) Export Promotion Mission aimed at helping exporters withstand the growing challenges posed by higher US tariffs and develop a resilient long-term export strategy. The planned mission, which will run over a six-year period, is designed to be fully compliant with World Trade Organization (WTO) rules, focusing on supporting export-oriented industries through trade finance, market access initiatives, and diversification of export markets and products.

The initiative is being developed by the Ministry of Commerce and Industry, and formal proposals have already been submitted to the Ministry of Finance for review. After clearance from the Union Cabinet, the new schemes will be rolled out as part of a long-term strategy to promote exports and strengthen the competitiveness of Indian products in global markets.

Targeted Support in Response to US Tariffs

The mission comes at a time when exporters in critical sectors such as gems and jewellery, textiles, and marine products (including shrimp) are preparing to face tariffs as high as 50% on exports to the United States. Rather than adopting direct subsidy-based approaches—which could potentially violate WTO rules and risk moral hazard—the government has opted for a strategically structured support model designed to enhance exportability and reduce long-term risk for Indian firms.

A senior official involved in the planning process noted that the strategy is not limited to reacting to current trade wars, but is intended to address long-term structural challenges and promote sustained export growth. “The goal is to look at the long-term situation,” the official said, emphasising that traditional export subsidies will not be part of the new package due to their complexity and limited impact.

Focus on Market Diversification and Export Finance

One of the main pillars of the mission is export diversification—both in terms of geographical markets and the range of products. By reducing over-reliance on a few key export destinations such as the US, the government hopes to spread risk and open new opportunities for Indian businesses in high-growth regions across Africa, Latin America, the Middle East, and Southeast Asia.

To facilitate this expansion, the mission will introduce schemes that provide support for high-risk markets, helping exporters navigate unfamiliar regulatory environments and build sustainable trade links. In addition, the programme will help Indian firms adapt their product offerings to better suit international standards and niche market requirements, enhancing the exportability of Indian goods.

Tailored Support for Small Exporters

Given that small and medium-sized exporters often find it the most difficult to access affordable credit and reliable finance, a core component of the mission focuses on collateral-free loans and alternative financial instruments, such as cross-border factoring. These tools will allow small exporters to receive payments more quickly by selling their receivables to financial institutions, thereby improving cash flow and operational flexibility.

A direct subsidy approach was ruled out due to the challenges associated with administering and evaluating such programmes, as well as concerns about WTO compliance. Instead, the government is encouraging risk-sharing mechanisms and institutional support models that enhance access to working capital without distorting the global trade landscape.

Complementary Schemes and Broader Strategy

This new ₹25,000 crore export support mission builds on the earlier ₹2,250 crore (US$ 256.85 million) programme announced in the 2025–26 Union Budget, which has yet to be fully rolled out. The new mission is expected to complement existing initiatives and provide a comprehensive framework for export promotion, particularly for sectors that are highly sensitive to global tariff changes.

Economists believe that this approach—focused on diversification, financing support, and compliance-based assistance—will create a more resilient export sector and help Indian exporters become less vulnerable to external shocks. By strengthening the capacity of exporters to adapt to evolving global trade dynamics, the government hopes to maintain momentum in export-led growth, which remains a key pillar of India’s ambition to become a developed nation by 2047.

Conclusion

In conclusion, the Government’s ₹25,000 crore Export Promotion Mission represents a strategic, forward-looking response to the challenges posed by rising US tariffs and shifting global trade policies. Rather than relying on traditional subsidies, the mission adopts a WTO-compliant, finance- and diversification-focused approach to support exporters—especially small and medium enterprises—through collateral-free loans, cross-border factoring, and market access initiatives.
By promoting a broader export basket, improving the exportability of Indian goods, and encouraging entry into high-growth markets, the government aims to create a resilient and globally competitive export ecosystem capable of sustaining long-term growth and reducing vulnerability to external shocks.
As the mission awaits final approval from the Union Cabinet, industry stakeholders are hopeful that the programme will deliver meaningful support and help India maintain its strong export momentum in an increasingly volatile global trade environment.

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