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Centre launches 7 new EPM interventions to push MSME exports

February 20, 2026 3 min read Economics GS3
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What Happened

  • The Union Commerce Minister launched seven new interventions under the Export Promotion Mission (EPM) on February 20, 2026, bringing the total operational interventions to 10 out of 11 planned.
  • Three interventions were launched under Niryat Protsahan (financial support): export factoring support, credit assistance for e-commerce operators, and support for emerging export opportunities.
  • Four interventions were launched under Niryat Disha (non-financial support): TRACE (testing/certification support), FLOW (overseas warehousing), LIFT (logistics/freight), and integrated trade intelligence facilitation.
  • The EPM was approved by the Union Cabinet with an outlay of Rs 25,060 crore for FY2025-26 to FY2030-31, making it a six-year digitally enabled mission to strengthen the export ecosystem.
  • Exporters were urged to leverage India's Free Trade Agreements (FTAs) to expand market access.

Static Topic Bridges

MSME Sector in India's Economy

The Micro, Small, and Medium Enterprises (MSME) sector is one of the most vital pillars of India's economy, contributing approximately 30.1% of GDP, 35.4% of manufacturing output, and 45.73% of total exports. As of 2025, over 7.16 crore MSMEs are registered on the Udyam Registration Portal, collectively providing employment to approximately 28-31 crore people.

  • MSMEs' share in merchandise exports rose from 43.6% in FY2023 to 45.7% in FY2024.
  • The Union Budget FY2026 allocated Rs 23,168 crore for the MSME Ministry, a 4.6% increase over FY2025.
  • Key structural challenges include high cost of capital, limited trade finance access, compliance burdens in international markets, and logistics disadvantages.

Connection to this news: The seven new EPM interventions directly address these structural constraints by providing interest subventions on export factoring (2.75% under Niryat Protsahan), reimbursement of certification costs (up to 75% under TRACE), and overseas warehousing support (up to 30% of project cost under FLOW).

Export Promotion and Trade Policy in India

India's trade policy has evolved from an inward-looking import substitution model to an export-led growth strategy. The government has deployed multiple instruments including Special Economic Zones (SEZs), the Foreign Trade Policy (FTP), Production-Linked Incentive (PLI) schemes, and now the EPM to boost exports.

  • India's merchandise exports stood at approximately $437 billion in FY2024.
  • The EPM consolidates fragmented export support under two integrated sub-schemes: Niryat Protsahan (financial) and Niryat Disha (non-financial).
  • Under Niryat Protsahan, MSMEs can access direct e-commerce credit facilities of up to Rs 50 lakh with 90% guarantee coverage and overseas inventory credit of up to Rs 5 crore with 75% guarantee coverage.
  • Under TRACE (Niryat Disha), exporters receive partial reimbursement of 60-75% for testing, inspection, and certification expenses, capped at Rs 25 lakh per year.

Connection to this news: The EPM represents a shift from piecemeal incentives to a mission-mode, consolidated approach to export promotion, specifically targeting MSMEs that face disproportionate barriers in accessing global markets.

Free Trade Agreements and India's Trade Architecture

India has signed or is negotiating multiple FTAs and Comprehensive Economic Cooperation Agreements (CECAs) with major trading partners. These agreements reduce tariff barriers and create preferential market access for Indian exporters.

  • India has operational FTAs/CEPAs with ASEAN, Japan, South Korea, UAE, Australia, and EFTA countries.
  • The India-UK FTA and India-EU FTA are under active negotiation.
  • The India-US interim trade agreement announced in February 2026 reduces the reciprocal tariff on Indian goods to 18%.
  • FTA utilization rates among Indian MSMEs remain low due to lack of awareness and compliance complexity.

Connection to this news: The Commerce Minister specifically urged exporters to take advantage of existing FTAs, highlighting that EPM interventions like TRACE and FLOW are designed to build capacity for MSMEs to meet the quality and compliance requirements needed to benefit from preferential trade arrangements.

Key Facts & Data

  • EPM outlay: Rs 25,060 crore for six years (FY2025-26 to FY2030-31)
  • 10 of 11 planned interventions now operational
  • MSME contribution: 30.1% of GDP, 45.73% of exports
  • Niryat Protsahan: Export factoring at 2.75% interest subvention, e-commerce credit up to Rs 50 lakh
  • Niryat Disha: TRACE reimburses 60-75% of certification costs; FLOW provides 30% warehousing support
  • Over 7.16 crore MSMEs registered on Udyam Portal employing ~31 crore people