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Centre plans Rs 25,000-crore export boost scheme to aid small businesses

Northeast NewsbyNortheast News
August 24, 2025
in Business
Representational image (pixabay)
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New Delhi: The Ministry of Commerce and Industry has proposed a Rs. 25,000-crore package of World Trade Organization (WTO)-compliant schemes aimed at strengthening India’s export sector, with a special focus on small and medium exporters in labour-intensive industries such as textiles, gems and jewellery, and marine products.

The proposal, prepared under the government’s Export Promotion Mission, has been sent to the Finance Ministry for approval and will later require Cabinet clearance before implementation.

Designed for a six-year period, the schemes seek to provide affordable trade finance and improve market access, addressing key structural challenges faced by exporters.

According to officials, the initiative will include collateral-free loans, support for alternative financial instruments, and assistance for entering new markets.

The Ministry is working in coordination with the MSME sector, given its status as India’s largest employer.

The upcoming package builds on the Rs. 2,250-crore allocation announced in the 2025-26 Union Budget, which is yet to be rolled out.

The urgency to launch the new measures has intensified following the hike in US tariffs and growing volatility in global trade.

Commerce Ministry officials said the mission is part of a long-term plan to diversify India’s export basket and reduce reliance on a few markets.

Apart from trade financing, the schemes will also strengthen logistics, marketing networks, and supply chains.

High domestic interest rates have made Indian exporters less competitive globally, and concessional financing under the scheme is expected to help bridge this gap.

“Despite global uncertainty, India’s services and merchandise exports in July and so far in FY26 have grown significantly, outpacing global export growth,” Commerce Secretary Sunil Barthwal said.

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India’s merchandise exports rose 7.29% in July to $37.24 billion, compared to $34.71 billion a year earlier, partly driven by accelerated shipments ahead of the US tariff hike in August.

Between April and July this fiscal, exports grew 3.07% to $149.2 billion, while imports increased 5.36% to $244.01 billion, government data shows.

Barthwal added that the government is expediting free trade negotiations and reviewing existing agreements with key partners, including the EU, UK, EFTA nations, ASEAN, Oman, New Zealand, Peru, and Chile.

Efforts are also underway to deepen engagement with the top 50 importing nations through Indian trade missions abroad.

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