Export Promotion Of Rs250 Bn; Collateral-Free Credit Support OK'd

Cabinet approves Credit Guarantee Scheme for Exporters (CGSE); 100% credit guarantee through NCGTC

FinTech BizNews Service

Mumbai, November 12, 2025: The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi has approved the Export Promotion Mission (EPM) — a flagship initiative announced in the Union Budget 2025–26 to strengthen India’s export competitiveness, particularly for MSMEs, first-time exporters, and labour-intensive sectors. 

The Union Cabinet, chaired by the Prime Minister, Shri Narendra Modi today also approved introduction of Credit Guarantee Scheme for Exporters (CGSE) for providing 100%  credit guarantee coverage by National Credit Guarantee Trustee Company Limited (NCGTC)  to Member Lending Institutions (MLIs) for extending additional credit facilities upto Rs.20,000 crore to eligible exporters, including MSMEs.

The Mission will provide a comprehensive, flexible, and digitally driven framework for export promotion, with a total outlay of Rs.25,060 crore for FY 2025–26 to FY 2030–31. EPM marks a strategic shift from multiple fragmented schemes to a single, outcome-based, and adaptive mechanism that can respond swiftly to global trade challenges and evolving exporter needs.

 EPM is anchored in a collaborative framework involving the Department of Commerce, Ministry of MSME, Ministry of Finance, and other key stakeholders including Financial Institutions, Export Promotion Councils, Commodity Boards, industry associations, and state governments.

 The Mission will operate through two integrated sub-schemes:

• NIRYAT PROTSAHAN – focuses on improving access to affordable trade finance for MSMEs through a range of instruments such as interest subvention, export factoring, collateral guarantees, credit cards for e-commerce exporters, and credit enhancement support for diversification into new markets.
• NIRYAT DISHA – focuses on non-financial enablers that enhance market readiness and competitiveness, including export quality and compliance support, assistance for international branding, packaging, and participation in trade fairs, export warehousing and logistics, inland transport reimbursements, and trade intelligence and capacity-building initiatives.

EPM consolidates key export support schemes such as the Interest Equalisation Scheme (IES) and Market Access Initiative (MAI), aligning them with contemporary trade needs.

 The Mission is designed to directly address structural challenges that constrain Indian exports, including:

·         limited and expensive trade finance access,

·         high cost of compliance with international export standards,

·         inadequate export branding and fragmented market access, and

·         logistical disadvantages for exporters in interior and low-export-intensity regions.

Under EPM, priority support will be extended to sectors impacted by recent global tariff escalations, such as textiles, leather, gems & jewellery, engineering goods, and marine products. The interventions will help sustain export orders, protect jobs, and support diversification into new geographies. 

The Directorate General of Foreign Trade (DGFT) will act as the implementing agency, with all processes — from application to disbursal — being managed through a dedicated digital platform integrated with existing trade systems.

 The Mission is expected to:

·         facilitate access to affordable trade finance for MSMEs,

·         enhance export readiness through compliance and certification support,

·         improve market access and visibility for Indian products,

·         boost exports from non-traditional districts and sectors, and

·         generate employment across manufacturing, logistics, and allied services.

EPM represents a forward-looking effort to make India’s export framework more inclusive, technology-enabled, and globally competitive, aligning with the vision of Viksit Bharat @2047.

Implementation strategy and targets:

The scheme shall be implemented by Department of Financial Services (DFS) through National Credit Guarantee Trustee Company Limited (NCGTC) to provide additional credit support by MLIs  to the eligible exporters including MSMEs. A management Committee formed under the chairmanship of Secretary, DFS will oversee the progress and implementation of the scheme. 

Major Impact:

The Scheme is expected to enhance the global competitiveness of Indian exporters and support diversification into new and emerging markets. By enabling collateral-free credit access under CGSE, it will be strengthen liquidity, ensure smooth business operations, reinforce India’s progress towards achieving the USD 1 trillion export target. This will further reinforce India’s journey towards Aatmanirbhar Bharat.

 Background:

Exports are a critical pillar of the Indian economy, accounting for nearly 21% of GDP in FY 2024-25 and contributing significantly to foreign exchange reserves. Export-oriented  industries directly and indirectly employ over 45 million people and MSMEs contributing nearly 45%  of total exports. Sustained export growth has been instrumental in supporting India’s current account balance and macroeconomic stability.

It is important to extend enhanced financial assistance and adequate time to exporters for diversifying their markets and enhance global competitiveness of Indian exporters. Accordingly, proactive Government intervention to provide additional liquidity support will ensure business growth and also enable expansion of markets.