What Happened
- The Union Government launched seven additional interventions under the Rs 25,060 crore Export Promotion Mission (EPM), bringing 10 of the 11 proposed interventions under the mission to operational status.
- The seven measures include credit assistance for e-commerce exporters, overseas inventory support, export factoring for MSMEs, overseas warehousing (FLOW), freight reimbursement for hilly regions (LIFT), trade intelligence (INSIGHT), and support for alternative trade instruments.
- Commerce and Industry Minister Piyush Goyal announced the measures, emphasizing MSME export competitiveness and global market readiness.
- The EPM was approved by the Union Cabinet as a six-year flagship programme spanning FY 2025-26 to FY 2030-31, consolidating fragmented export schemes into a single digitally driven framework.
Static Topic Bridges
Export Promotion Mission (EPM) — Structure and Key Schemes
The Export Promotion Mission is a comprehensive government initiative designed to strengthen India's export ecosystem by providing affordable trade finance, logistics support, and market intelligence to exporters, with a particular focus on MSMEs. It consolidates multiple fragmented export schemes into a unified, digitally driven framework.
- Total outlay: Rs 25,060 crore over six years (FY 2025-26 to FY 2030-31)
- Nodal ministry: Ministry of Commerce and Industry
- FLOW (Facilitating Logistics, Overseas Warehousing & Fulfilment): Support up to 30% of approved project cost for up to 3 years for overseas warehousing, including Bharat Mart in Dubai
- LIFT (Logistics Interventions for Freight & Transport): Up to 30% reimbursement of freight costs, capped at Rs 20 lakh per IEC per year, for exporters in North-Eastern and hilly regions
- INSIGHT (Integrated Support for Trade Intelligence & Facilitation): 50% of project costs (100% for government institutions or Indian missions abroad)
- Direct E-Commerce Credit Facility: Up to Rs 50 lakh with 90% guarantee coverage
- Overseas Inventory Credit Facility: Up to Rs 5 crore with 75% guarantee coverage and 2.75% interest subvention (cap: Rs 15 lakh per year)
- Export Factoring Support: 2.75% interest subvention on export factoring transactions, capped at Rs 50 lakh per MSME annually
Connection to this news: The launch of seven interventions operationalizes the bulk of the EPM, shifting from policy announcement to on-ground implementation, particularly targeting MSMEs that constitute a significant share of India's export base.
India's Foreign Trade Policy Framework
India's foreign trade is governed by the Foreign Trade (Development and Regulation) Act, 1992, with the Foreign Trade Policy (FTP) providing the implementation framework. The FTP 2023, announced on March 31, 2023, moved away from the five-year cycle to a dynamic, responsive framework that is updated as needed.
- FTP 2023: No fixed validity period; updates issued through notifications
- Key export incentive schemes: RoDTEP (Remission of Duties and Taxes on Exported Products), MEIS replaced by RoDTEP from January 2021
- DGFT (Directorate General of Foreign Trade) is the implementing authority under the Ministry of Commerce and Industry
- India's merchandise exports target: $2 trillion by 2030 (as set in the Trade Policy Vision)
- India's services exports: crossed $340 billion in FY 2024-25
Connection to this news: The EPM complements the FTP 2023 framework by adding dedicated credit, logistics, and intelligence support — areas where MSMEs face the greatest barriers to export participation.
MSME Sector and Export Contribution
The Micro, Small and Medium Enterprises (MSME) sector contributes approximately 45% of India's manufacturing output and about 40% of total exports. The MSME Development Act, 2006 (amended 2020) defines enterprises based on investment and turnover thresholds.
- Classification (revised in 2020): Micro (investment up to Rs 1 crore, turnover up to Rs 5 crore), Small (investment up to Rs 10 crore, turnover up to Rs 50 crore), Medium (investment up to Rs 50 crore, turnover up to Rs 250 crore)
- Udyam Registration portal: Online self-declaration system for MSME registration (launched June 2020)
- MSME contribution to GDP: approximately 30%
- Number of registered MSMEs: over 4.7 crore on Udyam portal
- Key challenge: Access to affordable trade finance and compliance costs for international markets
Connection to this news: The EPM's e-commerce credit facility and export factoring support directly address the trade finance gap faced by MSMEs, while the FLOW and LIFT schemes reduce logistics costs that disproportionately affect smaller exporters.
Key Facts & Data
- EPM total outlay: Rs 25,060 crore (FY 2025-26 to FY 2030-31)
- Duration: Six years
- Interventions launched: 7 new (10 of 11 total now operational)
- E-Commerce Credit Facility: Up to Rs 50 lakh, 90% guarantee
- Overseas Inventory Credit: Up to Rs 5 crore, 75% guarantee, 2.75% interest subvention
- Export Factoring: 2.75% interest subvention, cap Rs 50 lakh per MSME per year
- LIFT freight reimbursement: 30% of costs, cap Rs 20 lakh per IEC per year
- India's merchandise exports (FY 2024-25): approximately $437 billion