The Ministry of Commerce and Industry has proposed a Rs 250 billion package of WTO-compliant schemes aimed at bolstering India’s export ecosystem, particularly for small exporters in labour-intensive sectors such as textiles, gems and jewellery, and marine products. The schemes, part of the six-year Export Promotion Mission, are designed to enhance trade finance access and market diversification amid rising global trade uncertainties.
The proposal has been submitted to the Finance Ministry and will be forwarded to the Cabinet for final approval. It builds on the Rs 22.5 billion allocation announced in the 2025–26 Union Budget, which is yet to be implemented. The urgency of the rollout has intensified following the recent hike in US tariffs, prompting Indian exporters to accelerate shipments and seek alternative markets.
The new schemes aim to provide collateral-free loans, support alternative financial instruments, and assist exporters in entering new markets. High interest rates in India have placed domestic exporters at a disadvantage, and the proposed financial support is expected to bridge this gap.
The MSME Ministry will coordinate implementation, given the sector’s role as the country’s largest employer. The government also plans to strengthen logistics and marketing infrastructure to support export diversification.
India’s merchandise exports rose 7.29 percent year-on-year to $37.24 billion in July, driven in part by pre-emptive shipments ahead of US tariff hikes. Between April and July of FY 2025–26, exports increased 3.07 percent to $149.2 billion, while imports rose 5.36 percent to $244.01 billion.
Commerce Secretary Sunil Barthwal stated that India’s export growth in July and the current fiscal year has outpaced global trends. He emphasized the government’s efforts to fast-track new free trade agreements and review existing ones with partners including the EU, UK, EFTA, Oman, ASEAN, New Zealand, Peru, and Chile. Missions abroad are being mobilized to expand India’s export footprint across the top 50 importing nations.
