Export Promotion Mission: Enabling MSMEs in Global Trade

Source: The post “Export Promotion Mission: Enabling MSMEs in Global Trade” has been created, based on “Export Promotion Mission: Enabling MSMEs in Global Trade” published in “PIB” on  25th February 2026.

UPSC Syllabus: GS Paper-3-Economy

Context: The Export Promotion Mission (EPM) is a flagship initiative approved in November 2025 to strengthen India’s export ecosystem. The Mission focuses on MSMEs, first-time exporters, and labour-intensive sectors to expand global market access. The government has allocated ₹25,060 crore for the period FY 2025–26 to FY 2030–31 to enhance export competitiveness.

Objectives of the Mission

1. The Mission aims to improve access to affordable and diversified trade finance for MSMEs.
2. It also aims to strengthen export branding, logistics infrastructure, and overseas warehousing.
3. It seeks to help exporters comply with international quality, technical, and sustainability standards.
4. The Mission also seeks to expand market access and provide trade intelligence support.
5. It encourages broader participation of MSMEs, including cross-border e-commerce exports.

Structure of EPM

1. The Mission is implemented through two sub-schemes called Niryat Protsahan and Niryat Disha.
2. Niryat Protsahan focuses on financial enablers such as trade finance and credit support.
3. Niryat Disha focuses on non-financial support such as compliance, logistics, and market access.

Key Features of EPM

1. The Mission provides stage-wise support across the export journey from market exploration to post-shipment activities.
2. It provides support for market analysis, export finance, trade compliance, logistics, overseas warehousing, and buyer connectivity.
3. The Mission adopts a whole-of-government approach by integrating policy support, finance, logistics, and market linkages.

Major Interventions under EPM

I. Financial Enablers under Niryat Protsahan

1. The Mission provides support for export factoring to unlock working capital and manage payment risk.
2. It offers credit assistance to e-commerce exporters through the Export-Import Bank of India.
3. It supports exporters entering new markets through shared-risk and credit instruments.
4. It provides interest subvention on pre-shipment and post-shipment export credit.
5. It facilitates collateral-free export credit through credit guarantee support.

II. Non-Financial Enablers under Niryat Disha

1. TRACE provides financial assistance for testing, inspection, and certification required for global markets.
2. LIFT provides financial support to reduce logistics and transportation costs.
3. INSIGHT provides trade intelligence, training, research, and capacity building.
4. FLOW supports overseas warehousing, fulfilment, and e-commerce export hubs.
5. MAS supports buyer-seller meets, trade fairs, and trade delegations.

Significance of the Mission

1. The Mission reduces export finance constraints faced by MSMEs.
2. It improves compliance readiness for international markets.
3. It mitigates logistics disadvantages faced by exporters in hinterland regions.
4. It strengthens overseas market access and distribution networks.
5. The Mission promotes inclusive and export-led growth.

Challenges of EPM

1. The Mission is thoughtfully structured, but its impact will depend on effective execution by both government and industry.
2. The annual budget allocation of ₹2,250 crore for FY 2025–26 is smaller than the total outlay, which may slow implementation.
3. Exporters continue to face uneven access to export credit and rising compliance costs due to non-tariff measures in foreign markets.
4. Many exporters face documentation gaps and weak overseas distribution networks that reduce competitiveness.
5. Exporters must improve their own compliance systems, financing options, and digital adoption to benefit from the Mission.
6. Digital trade reforms requiring electronic documentation may be difficult for smaller firms to adopt.
7. Long-term export competitiveness depends on productivity gains, digital readiness, and better use of data and technology.

Way Forward

1. The government should ensure the timely and efficient implementation of schemes to translate policy intent into real export growth.
2. Exporters should use consultation opportunities to provide feedback to policymakers and improve scheme design.
3. MSMEs should strengthen their internal compliance systems and adopt global quality standards.
4. Exporters should diversify financing options and use available trade finance tools such as factoring and credit guarantees.
5. Firms should adopt digital documentation practices to benefit from the proposed digital trade reforms.
6. Exporters should build reliable overseas market linkages and distribution networks.
7. The government and industry should focus on productivity improvements, digital adoption, and data-driven supply chains to ensure sustained export competitiveness.

Conclusion: The Export Promotion Mission provides an integrated framework combining finance, logistics, compliance, and market access support. The Mission has strong design potential to expand MSME participation in global trade. However, its success will depend on disciplined execution, exporter preparedness, and sustained improvements in competitiveness.

Question: Discuss the objectives and key features of the Export Promotion Mission (EPM). Examine its significance for MSMEs and the challenges in its implementation.

Source: PIB