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New Delhi: The government's export promotion mission, announced in the recent budget, is set to take shape within the next two months, bringing key ministries together to identify sectors needing capital for technology, marketing, and market expansion, two senior officials told Mint.
"The broad contours are in place, but it’s not yet at a stage where we can list specific measures. Initial discussions have already occurred between the finance, commerce and MSME ministries, and the talks are progressing,” the first person mentioned above said, requesting anonymity.
“When we talk about a scheme, it’s not in the conventional sense. There are specific targets to be met, but that’s not the end goal. Once a target is achieved, there’s always more to accomplish. The mission is time-bound—it could take four or five years—but the focus is on delivering tangible results, which are solid measures to boost exports,” the person mentioned above added.
In her budget speech last week, finance minister Nirmala Sitharaman announced an export promotion mission, spearheaded by the ministries of commerce, finance, and micro, small, and medium enterprises (MSME), to position exports as a key driver of economic growth.
As a part of the budget announcements for 2025-26, the initiative aims to narrow India’s trade deficit, which hit a record $32.8 billion in November 2024.
The mission will see the finance ministry streamline credit access for exporters, addressing a major hurdle for businesses seeking global markets.
The second person said the focus of the government is not just on how much money is allocated, as competitiveness cannot be improved simply by increasing funding. Different elements needed to come together, including trade promotion and sectoral quality issues, which would have to be addressed by the respective ministries.
“Everything has to function like a team or a symphony, working in unison. The purpose of these missions is to address sector-specific challenges in a holistic manner," said the second person mentioned above, requesting anonymity.
"Moreover, many of these issues are not solely within the central government’s domain—state governments also play a crucial role,” the person added.
Spokespersons of the ministries of finance and commerce & industry didn't respond to emailed queries.
News agency PTI on Tuesday reported that the government is designing schemes to support MSME exporters by offering credit on favourable terms, strengthening services to promote alternative financing, and providing assistance to navigate non-tariff barriers imposed by other countries. These schemes could be rolled out in the next 4-5 months, the agency added, quoting director general of foreign trade (DGFT) Santosh Kumar Sarangi.
India’s merchandise trade deficit stood at $21.94 billion in December after widening to $37.84 billion in November, $27.4 billion in October, and $20.78 billion in September, according to the latest data from the commerce ministry.
India’s foreign trade has been hit by weak demand in major markets, geopolitical tensions and volatile commodity prices. Sluggish growth in key markets has lowered demand for exports while rising global fuel costs have increased expenses.
Last April, the World Trade Organization (WTO) had forecast a recovery in global merchandise trade in calendar year (CY)2024 following a weak CY 2023 that was marked by inflation and high energy prices.
However, the forecast for trade growth for 2025 was revised downward in October from 3.3% to 3.0%.
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