What Happened
- The commerce ministry is set to operationalise eight major components of the Rs 25,060 crore Export Promotion Mission (EPM) next week
- Key components include e-commerce support for exporters, factoring services, and warehousing infrastructure
- The EPM was approved by the Union Cabinet and announced in the Union Budget 2025-26, with outlays spanning FY 2025-26 to FY 2030-31
- The mission marks a strategic shift from multiple fragmented export schemes to a single, outcome-based, digitally enabled framework
- Focus is on boosting MSME exports, labour-intensive sectors, and regions with low export intensity
Static Topic Bridges
Export Promotion Mission (EPM) — Structure and Sub-Schemes
The Export Promotion Mission is a unified export support framework approved by the Union Cabinet with an outlay of Rs 25,060 crore over six years (FY26 to FY31). It replaces multiple fragmented export promotion schemes with a single adaptive mechanism that can respond to evolving global trade dynamics. The EPM operates through two integrated sub-schemes: Niryat Protsahan (Financial Enablers) and Niryat Disha (Non-Financial Enablers).
- Niryat Protsahan provides financial support: affordable trade finance, interest subvention, export factoring, exporter credit cards, collateral guarantees, and credit enhancement for diversification into new markets
- Niryat Disha provides non-financial support: quality and compliance assistance, branding, trade fair participation, warehousing, logistics facilitation, and district-level capacity building
- Total outlay: Rs 25,060 crore for FY 2025-26 to FY 2030-31
- Includes a Rs 20,000 crore credit guarantee scheme for exporters
Connection to this news: The eight components being rolled out next week are the first operational segments of this two-pronged EPM framework, with e-commerce, factoring, and warehousing spanning both the financial and non-financial sub-schemes.
Export Factoring
Export factoring is a trade finance mechanism where an exporter sells its accounts receivable (invoices for goods shipped) to a factor (financial institution) at a discount in exchange for immediate cash. This addresses a critical challenge faced by MSMEs — delayed payments from foreign buyers that strain working capital. India's Factoring Regulation Act, 2011 (amended in 2021) governs factoring transactions and was amended to widen the pool of entities that can engage in factoring, allowing NBFCs to participate.
- Factoring helps MSMEs convert trade receivables into immediate working capital without traditional collateral
- The 2021 amendment to the Factoring Regulation Act enabled all NBFCs (not just NBFC-Factors) to undertake factoring, expanding credit access
- The TReDS (Trade Receivables Discounting System) platform, regulated by RBI, facilitates factoring for MSMEs
- Global factoring volume exceeded EUR 3.78 trillion in 2023 (Factors Chain International)
Connection to this news: One of the eight EPM components specifically targets factoring services, recognising that MSMEs — which form the bulk of India's exporters — face acute trade finance gaps that constrain their ability to fulfil export orders.
India's Export Performance and Trade Policy Evolution
India's merchandise and services exports have been on an upward trajectory, reaching an estimated $820.93 billion in FY 2024-25 (5.5% growth over FY24). The government's trade policy has shifted from import substitution (pre-1991) to export promotion through successive Foreign Trade Policies, PLI schemes, and now the EPM. Electronics has emerged as the second-largest item in India's export basket, with mobile phone exports approaching $50 billion.
- India's export target under Viksit Bharat 2047 vision aims to significantly expand India's share in global trade
- Top export destinations: North America and European Union account for a significant share
- PLI (Production Linked Incentive) schemes across 14 sectors have boosted manufacturing exports, particularly in electronics and pharmaceuticals
- India's share in global merchandise exports remains around 1.8%, indicating significant room for growth
Connection to this news: The EPM's focus on e-commerce, warehousing, and trade finance directly addresses structural bottlenecks that have prevented India from scaling its export capacity, particularly for MSMEs in Tier-2 and Tier-3 cities.
Key Facts & Data
- EPM total outlay: Rs 25,060 crore (FY 2025-26 to FY 2030-31)
- Two sub-schemes: Niryat Protsahan (financial) and Niryat Disha (non-financial)
- Eight components to be rolled out, including e-commerce, factoring, and warehousing
- Rs 20,000 crore credit guarantee scheme for exporters included in EPM
- India's total exports in FY 2024-25: approximately $820.93 billion
- Cumulative exports (Apr-Dec 2025): estimated $634.26 billion (4.33% growth over same period previous year)