The Union Cabinet has approved two major policy measures worth a combined ₹45,060 crore to support exporters and improve liquidity in the sector. The initiatives — the Credit Guarantee Scheme for Exporters (CGSE) and the Export Promotion Mission (EPM) — are expected to provide financial and structural support for micro, small and medium enterprises (MSMEs), which form the backbone of India’s export network.
The decision comes at a time when global trade volatility, tariff hikes and funding constraints have created pressure on exporters. Together, the two schemes are designed to provide short-term liquidity relief and a long-term policy framework for competitiveness.
Under the Credit Guarantee Scheme for Exporters, the National Credit Guarantee Trustee Co. Ltd will extend 100% credit guarantee coverage to banks and financial institutions, allowing them to offer additional collateral-free loans of up to ₹20,000 crore to eligible exporters. The move is targeted at addressing cash flow gaps and ensuring smooth business operations, particularly for MSMEs.
The scheme permits additional working capital of up to 20% of sanctioned export credit limits and will remain valid until March 31, 2026. A management committee headed by the Department of Financial Services will supervise implementation and monitor progress.
Officials say this measure will not only provide liquidity but also encourage exporters to venture into new and high-risk markets, reinforcing India’s efforts to achieve its $1 trillion export target.
The Export promotion mission (EPM) will consolidate multiple fragmented export schemes under a single, outcome-driven framework. With a total outlay of ₹25,060 crore for FY26 to FY31, it will be anchored by the Department of Commerce and implemented by the Directorate General of Foreign Trade (DGFT) through fully digital processes.
The mission will operate through two sub-schemes — Niryat Protsahan and Niryat Disha. Niryat Protsahan, with an allocation of ₹10,400 crore, will focus on improving access to affordable trade finance through interest subvention on pre- and post-shipment credit, export factoring, and collateral-free loans for MSMEs. It will also introduce export credit cards for e-commerce exporters.
Niryat Disha, with a budget of ₹14,660 crore, will address non-financial barriers by supporting export quality certification, packaging, logistics, branding, and trade intelligence. It will also offer incentives for exporters from low-intensity districts to reduce transport costs and improve inclusivity in trade participation.
The announcement follows the recent imposition of a 50% tariff by the US on certain Indian goods — the steepest among all trading partners except Brazil. The move has added to exporters’ challenges, making the new policy package particularly significant.
Union minister Ashwini Vaishnaw, while briefing the media, said the measures would help Indian exporters diversify into emerging markets and strengthen India’s image as a dependable global supplier. The reforms, he added, align with the country’s goal of building a resilient and self-reliant economy.
Industry representatives view the move as timely. Vinod Kumar, president of the India SME Forum, said the schemes come when MSMEs are grappling with tight credit and higher trade costs. He noted that the credit guarantee would help restore confidence among small exporters, while the promotion mission provides a long-term roadmap for market diversification.
In a parallel decision, the Cabinet also approved the rationalisation of royalty rates for key minerals — graphite, caesium, rubidium, and zirconium — which are critical for green energy and high-technology industries.
The new rates will be 2% of the average sale price for caesium and rubidium, 1% for zirconium, and 2–4% for graphite, depending on its carbon content. The changes are expected to facilitate auctions of new mineral blocks, boost domestic production, and reduce reliance on imports for sectors such as electric vehicle batteries, electronics, nuclear energy, and aerospace.
The move aligns with India’s broader objective to strengthen its supply chain for critical and strategic minerals, listed under the Mines and Minerals (Development and Regulation) Act.
Together, the ₹45,060 crore package signals a coordinated policy effort to enhance liquidity, strengthen market readiness, and safeguard exporters against external trade shocks. For India’s MSME-dominated export landscape, the reforms offer both relief and a renewed sense of direction amid global protectionism.
