{"id":73252,"date":"2025-11-13T10:47:45","date_gmt":"2025-11-13T05:17:45","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=73252"},"modified":"2025-11-13T10:47:45","modified_gmt":"2025-11-13T05:17:45","slug":"export-promotion-mission-epm-strengthening-indias-export-competitiveness","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/export-promotion-mission-epm-strengthening-indias-export-competitiveness\/","title":{"rendered":"Export Promotion Mission (EPM) &#8211; Strengthening India\u2019s Export Competitiveness"},"content":{"rendered":"<h2 style=\"text-align: justify;\"><b>Export Promotion Mission (EPM) Latest News<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Amid rising global trade uncertainties and the imposition of steep 50% tariffs by the US on Indian goods, the Union Cabinet has approved <\/span><b>a comprehensive Export Promotion Mission (EPM) worth \u20b925,060 crore.<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The initiative <\/span><b>seeks to strengthen India\u2019s export competitiveness<\/b><span style=\"font-weight: 400;\">, especially in labour-intensive sectors such as textiles, leather, gems &amp; jewellery, engineering goods, and marine products.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Background &#8211; Tariff Pressure and Export Slowdown<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The US, India\u2019s largest export destination, <\/span><b>imposed 50% tariffs<\/b><span style=\"font-weight: 400;\"> (effective August 27, 2025), making Indian goods among the most heavily taxed globally after China.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>India\u2019s exports to the US declined<\/b><span style=\"font-weight: 400;\"> 12% (in September 2025), with engineering goods down 9.4%.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Textile and apparel exports<\/b><span style=\"font-weight: 400;\">\u201428% of which go to the US\u2014fell 10.34% year-on-year in September 2025.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The government\u2019s move (EPM) is <\/span><b>a strategic response<\/b><span style=\"font-weight: 400;\"> to safeguard employment, maintain export momentum, and diversify into new markets.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Key Highlights of the Export Promotion Mission (EPM)<\/b><\/h2>\n<ul>\n<li><b>Outlay and duration:<\/b>\n<ul>\n<li><b>Total outlay:<\/b><span style=\"font-weight: 400;\"> \u20b925,060 crore<\/span><\/li>\n<li><b>Duration<\/b><span style=\"font-weight: 400;\">: FY 2025\u201326 to FY 2030\u201331 (6 years)<\/span><\/li>\n<li><b>Consolidates<\/b><span style=\"font-weight: 400;\">: Key export support schemes like Interest Equalisation Scheme (IES) and Market Access Initiative (MAI).<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>Objectives:<\/b>\n<ul>\n<li><b>Enhance credit availability<\/b><span style=\"font-weight: 400;\"> and <\/span><b>reduce cost of credit for exporters<\/b><span style=\"font-weight: 400;\">, particularly MSMEs.<\/span><\/li>\n<li><b>Address non-tariff barriers<\/b><span style=\"font-weight: 400;\">, logistics bottlenecks, branding, and market access challenges.<\/span><\/li>\n<li><b>Enable diversification<\/b><span style=\"font-weight: 400;\"> into new and high-risk markets.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>Implementation framework: <\/b><span style=\"font-weight: 400;\">The Directorate General of Foreign Trade (<\/span><b>DGFT<\/b><span style=\"font-weight: 400;\">) will manage the mission, which will be implemented through <\/span><b>two sub-schemes<\/b><span style=\"font-weight: 400;\"> &#8211;<\/span>\n<ul>\n<li><b>Niryat Protsahan (\u20b910,401 crore)<\/b><span style=\"font-weight: 400;\">: Focus on <\/span><b>financial interventions, <\/b><span style=\"font-weight: 400;\">and includes interest subvention, export factoring, credit guarantees, credit cards for e-commerce exporters, and credit enhancement tools.<\/span><b> It aims to improve trade finance access and working capital liquidity.<\/b><\/li>\n<li><b>Niryat Disha (\u20b914,659 crore): <\/b><span style=\"font-weight: 400;\">Focus on<\/span><b> non-financial interventions, <\/b><span style=\"font-weight: 400;\">and covers international branding, packaging, trade fairs, warehousing, logistics support, inland transport reimbursement, and capacity-building initiatives.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>Digital and flexible framework: <\/b><span style=\"font-weight: 400;\">The mission provides a digitally driven, comprehensive, and flexible framework to meet contemporary trade needs and align export support with dynamic global conditions.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Other Cabinet Decision &#8211; Rs 20,000-Crore Credit Guarantee Scheme for Exporters (CGSE)<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Objective<\/b><span style=\"font-weight: 400;\">: To provide additional working capital and collateral-free loans up to 20% of sanctioned limits for exporters.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Coverage<\/b><span style=\"font-weight: 400;\">: 100% guarantee by National Credit Guarantee Trustee Company (NCGTC) to lending institutions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Beneficiaries<\/b><span style=\"font-weight: 400;\">: Exporters including MSMEs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Timeline<\/b><span style=\"font-weight: 400;\">: Scheme valid till March 2026.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Impact<\/b><span style=\"font-weight: 400;\">: Expected to enhance liquidity, support diversification, and ensure smooth business operations.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Sectoral Impact and Stakeholder Responses<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Textile and apparel sector<\/b><span style=\"font-weight: 400;\">: The Confederation of Indian Textile Industry (CITI) welcomed the mission, stating it will make Indian textiles globally competitive and help leverage free trade agreements (FTAs) for market expansion.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>MSME empowerment: <\/b><span style=\"font-weight: 400;\">Federation of Indian Export Organisations (FIEO) praised EPM\u2019s unified financial and non-financial framework, stating it addresses long-term challenges such as high compliance costs, weak branding, and logistics inefficiencies.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Gems and jewellery sector<\/b><span style=\"font-weight: 400;\">: The GJEPC appreciated measures like interest subvention and expanded trade fair support, calling them crucial for first-time exporters and MSMEs.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Performance of Indian Exports<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Overall growth<\/b><span style=\"font-weight: 400;\">: India&#8217;s total exports (merchandise and services) grew by <\/span><b>5.19%<\/b><span style=\"font-weight: 400;\"> in April\u2013August 2025 compared to the same period last year.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Total value<\/b><span style=\"font-weight: 400;\">: The combined export value was USD 346.10 billion in April\u2013August 2025.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Merchandise exports<\/b><span style=\"font-weight: 400;\">: Saw a growth of 2.31% during April\u2013August 2025, reaching USD 183.74 billion.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Non-Petroleum and non-gems and jewellery exports<\/b><span style=\"font-weight: 400;\">: Showed strong growth of 7.76% in the same period, reaching USD 146.70 billion.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Growth drivers<\/b><span style=\"font-weight: 400;\">: Key sectors contributing to growth include engineering goods, electronics, pharmaceuticals, and chemicals.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Challenges<\/b><span style=\"font-weight: 400;\">: The merchandise trade deficit (in September 2025) widened as imports grew at a faster rate than exports.\u00a0<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Way Forward<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Strengthen trade finance<\/b><span style=\"font-weight: 400;\">: Ensure timely and affordable credit access for MSMEs through digital platforms.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Enhance market intelligence<\/b><span style=\"font-weight: 400;\">: Build data-driven mechanisms to identify new export destinations.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Promote Brand India<\/b><span style=\"font-weight: 400;\">: Invest in global marketing, packaging, and e-commerce support.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Address structural bottlenecks<\/b><span style=\"font-weight: 400;\">: Improve logistics infrastructure and reduce compliance burdens.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Leverage FTAs<\/b><span style=\"font-weight: 400;\">: Use existing and upcoming trade agreements to expand export markets.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Conclusion<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Export Promotion Mission (EPM) and Credit Guarantee Scheme for Exporters mark a <\/span><b>decisive step toward bolstering India\u2019s export resilience<\/b><span style=\"font-weight: 400;\"> amid rising global protectionism and tariff barriers.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Together, they signify<\/span><b> a policy shift <\/b><span style=\"font-weight: 400;\">toward sustainable, competitive, and inclusive export growth in the post-pandemic global economy.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><b>Source: <\/b><a href=\"https:\/\/indianexpress.com\/article\/business\/economy\/amid-us-tariff-hit-cabinet-clears-6-year-rs-25000-crore-export-mission-10362058\/\" target=\"_blank\" rel=\"nofollow noopener\"><b>IE<\/b><\/a><b>\u00a0|\u00a0<\/b><a href=\"https:\/\/timesofindia.indiatimes.com\/india\/govt-okays-rs-25k-crore-export-mission-and-extra-credit-for-traders-hit-by-tariffs\/articleshowprint\/125287053.cms\" target=\"_blank\" rel=\"nofollow noopener\"><b>ToI<\/b><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Amid rising global trade uncertainties, the Union Cabinet has approved a comprehensive Export Promotion Mission (EPM) worth \u20b925,060 crore.<\/p>\n","protected":false},"author":19,"featured_media":61066,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[2379,60,22,59],"class_list":{"0":"post-73252","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"tag-export-promotion-mission","9":"tag-mains-articles","10":"tag-upsc-current-affairs","11":"tag-upsc-mains-current-affairs","12":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/73252","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=73252"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/73252\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/61066"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=73252"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=73252"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=73252"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}