What Happened
- Union Minister of Commerce and Industry Piyush Goyal launched seven additional interventions under the Export Promotion Mission (EPM) on February 20, 2026.
- The EPM, with a total outlay of INR 25,060 crore (2025-26 to 2030-31), is a flagship Department of Commerce initiative to boost MSME exports and enhance India's global competitiveness.
- With this launch, 10 of the 11 proposed EPM interventions are now operational.
- The seven measures focus on two pillars: trade finance support and compliance/logistics enhancement.
- Trade Finance: 2.75% interest subvention on export factoring for MSMEs; Direct E-Commerce Credit Facility up to INR 50 lakh with 90% guarantee coverage.
- Compliance and Certification: Partial reimbursement for testing, inspection, and certification to international standards.
- Logistics: Overseas warehousing including Bharat Mart in Dubai to provide Indian exporters strategic access to GCC, Africa, Central Asia, and Europe.
- Structural constraints being addressed: high cost of capital, logistical disadvantages, non-recognition of MSME products in international markets due to standards gaps.
Static Topic Bridges
MSMEs and India's Export Architecture
Micro, Small and Medium Enterprises (MSMEs) are defined under the MSMED Act, 2006 (as amended in 2020) by investment and turnover criteria. They are the backbone of India's industrial economy, contributing approximately 30% of GDP, ~45% of India's total exports, and employing over 11 crore workers — making them central to any export-led growth strategy.
Despite their share, Indian MSMEs face structural disadvantages in international markets: they are too small to independently manage export compliance, costly trade finance, logistics, and overseas marketing. Policy interventions like the EPM specifically aim to make exporting viable for smaller firms.
- MSME definition (2020): Micro: investment ≤ INR 1 crore, turnover ≤ INR 5 crore; Small: ≤ INR 10 crore / ≤ INR 50 crore; Medium: ≤ INR 50 crore / ≤ INR 250 crore
- MSMEs: ~6.3 crore registered enterprises in India (Udyam portal as of 2025)
- MSME share of exports: ~45% (goods); MSME contribution to GDP: ~30%
- MSME employment: 11+ crore (second-largest employer after agriculture)
- Key export sectors for MSMEs: textiles/garments, leather, gems and jewellery, engineering goods, chemicals, food processing
Connection to this news: The EPM's MSME focus directly targets the structural bottlenecks — expensive credit, high certification costs, and weak logistics — that prevent Indian MSMEs from competing with Chinese and Vietnamese counterparts in global markets.
Export Financing Instruments: Factoring and Credit Guarantee
Export factoring is a trade finance mechanism where an exporter sells its receivables (invoices for goods shipped) to a financial intermediary (factor) at a discount, receiving immediate liquidity rather than waiting for the importer to pay. It is particularly useful for MSMEs that cannot afford to tie up working capital in 30-90 day payment cycles.
The interest subvention of 2.75% on export factoring lowers the effective cost of this financing instrument for MSMEs, making it price-competitive with conventional export credit.
- Export Factoring: Governed by IFSCA (International Financial Services Centres Authority) and RBI for domestic factors
- FCI (Factors Chain International): Global network for cross-border factoring — India needs deeper integration
- Export Credit Guarantee Corporation (ECGC): Government-owned insurer providing export credit risk cover; premium subsidised for MSMEs
- RBI's Export Credit: Priority sector lending guidelines mandate banks to extend credit to exporters at concessional rates
- Direct E-Commerce Credit Facility: Targets MSME exporters on global platforms (Amazon Global, eBay, etc.); up to INR 50 lakh, 90% guarantee = only 10% risk on lender
Connection to this news: The 2.75% interest subvention on factoring directly reduces MSME working capital cost in export cycles. The 90% guarantee on E-Commerce credit reduces lender risk, incentivising banks to extend credit to digital exporters who previously lacked collateral.
India's Export Policy Architecture: Institutions and Instruments
India's export promotion ecosystem involves multiple institutions: the Department of Commerce (policy), Directorate General of Foreign Trade (DGFT — licensing, FTAs), Export Promotion Councils (EPCs — sector-specific bodies for leather, gems, engineering, etc.), ECGC (credit insurance), and EXIM Bank (long-term export finance).
The Foreign Trade Policy (FTP) provides the overarching framework, while schemes like RoDTEP (Remission of Duties and Taxes on Exported Products), EPCG (Export Promotion Capital Goods), and Advance Authorisation provide duty relief to exporters.
- Foreign Trade Policy 2023-28: Released in March 2023; focuses on reaching $2 trillion exports by 2030
- RoDTEP: Replaced MEIS (Merchandise Exports from India Scheme); refunds embedded taxes at various rates by sector
- EPCG: Allows import of capital goods at zero duty for export production, subject to export obligation
- Advance Authorisation: Duty-free import of inputs for direct use in export production
- Bharat Mart (Dubai): India's international marketplace hub in GIFT City and Dubai; facilitates physical and digital showcasing of Indian products
Connection to this news: The seven EPM measures complement the FTP 2023-28 by addressing gaps not fully covered by duty relief schemes — particularly trade finance access, standards compliance, and overseas warehousing, which are operational rather than fiscal constraints.
Standards, Certification, and Non-Tariff Barriers
One of the most significant non-tariff barriers (NTBs) for Indian MSMEs in global markets is the inability to meet importing country standards and certification requirements. EU food safety standards (RASFF notifications), US FDA compliance, and global quality certifications (ISO, BIS, Halal, Organic) require costly third-party testing and inspection that MSMEs often cannot afford.
Partial reimbursement for testing, inspection, and certification — one of the seven EPM measures — directly reduces this compliance cost burden.
- Codex Alimentarius: International food safety standards; WTO Agreement on Sanitary and Phytosanitary Measures (SPS Agreement) governs food trade standards
- TBT Agreement (Technical Barriers to Trade): WTO agreement governing product standards, testing, certification
- BIS (Bureau of Indian Standards): National standards body; operates BIS CRS for electronics/IT products
- APEDA (Agricultural and Processed Food Products Export Development Authority): Promotes agricultural exports; runs quality certification schemes
- India often receives EU RASFF notifications for food safety violations — standards gap costs export market access
Connection to this news: Reimbursing certification costs directly reduces the per-shipment cost of standards compliance for MSMEs — making it economically rational for small firms to invest in quality systems that open premium export markets.
Key Facts & Data
- Export Promotion Mission total outlay: INR 25,060 crore (2025-26 to 2030-31)
- Seven new measures launched: February 20, 2026, by Commerce Minister Piyush Goyal
- EPM operational interventions: 10 of 11 now active
- Interest subvention on export factoring: 2.75% for MSMEs
- Direct E-Commerce Credit Facility: Up to INR 50 lakh; 90% guarantee coverage
- India's MSME export share: ~45% of total goods exports
- Total registered MSMEs: ~6.3 crore (Udyam portal, 2025)
- MSME employment: 11+ crore workers
- India's merchandise export target: $2 trillion by 2030 (FTP 2023-28)
- Bharat Mart in Dubai: Overseas warehousing hub for GCC, Africa, Central Asia, European access
- ECGC: Provides export credit insurance; premium subvention available for MSMEs