Mint Explainer: How India’s new export mission targets MSME credit and market gaps

The centre has rolled out a ₹25,060-crore Export Promotion Mission that pairs structured market access with cheaper export credit, signalling a sharper, more targeted playbook for MSMEs. Here’s what’s new, how it differs from earlier schemes, and why it matters now—Mint explains.

What is the Export Promotion Mission (EPM)?

The Export Promotion Mission (EPM) is a five-year programme, running from FY26 to FY31, approved by the Union Cabinet to strengthen India’s export ecosystem. Its objectives include lowering export costs, widening access to trade finance, diversifying export markets and improving export competitiveness—especially for MSMEs.

Announced in the Union Budget for FY26, the mission is jointly implemented by the Department of Commerce, the ministries of MSME and Finance, with the Directorate General of Foreign Trade (DGFT) as the nodal agency.

How is the EPM structured?

EPM operates through two distinct sub-schemes:

Niryat Protsahan, which focuses on trade finance and credit support; and

Niryat Disha, which targets non-financial enablers such as market access, branding, regulatory compliance, logistics and trade intelligence.

Of the total ₹25,060-crore outlay, ₹10,400 crore has been earmarked for Niryat Protsahan and ₹14,660 crore for Niryat Disha.

What is Market Access Support (MAS)?

Market Access Support (MAS), launched under Niryat Disha, is aimed at helping exporters—particularly MSMEs and first-time exporters—connect with overseas buyers and enter priority and emerging markets.

The scheme supports participation in international trade fairs, buyer-seller meets, reverse buyer-seller meets hosted in India, and targeted trade delegations abroad.

How is MAS different from earlier schemes?

Unlike earlier export promotion efforts that were largely event-driven, MAS introduces structured planning and outcome measurement.

The government will prepare a rolling three-to-five-year calendar of major market access events. Mandatory online feedback will assess buyer quality, leads generated and market relevance. All applications and approvals will be routed through the trade.gov.in portal to improve transparency and reduce delays.

At least 35% MSME participation is mandatory for supported events, with a special emphasis on new geographies. Small exporters with turnover of up to ₹75 lakh will also be eligible for partial airfare support to lower entry barriers.

What financial support is on offer to MSMEs?

Under the Niryat Protsahan sub-scheme, the Centre has rolled out two key financial interventions to ease working-capital constraints and improve access to bank finance for MSME exporters.

The interest support scheme offers a base subvention of 2.75% on pre- and post-shipment rupee export credit. Additional incentives may be provided for exports to under-represented or emerging markets.

The support applies to a notified positive list of six-digit tariff lines covering about 75% of India’s tariff universe with high MSME participation. An annual cap of ₹50 lakh per exporter has been set for FY26, with rates to be reviewed twice a year.

What is the export credit collateral guarantee?

The export credit collateral guarantee scheme, implemented in partnership with the Credit Guarantee Fund Trust for Micro and Small Enterprises, provides up to 85% guarantee cover for micro and small exporters and up to 65% for medium exporters.

The guarantee is subject to a cap of ₹10 crore per exporter per year and is intended to encourage banks to expand lending to export-oriented MSMEs by lowering credit risk.

Why does this matter now?

The timing of these measures is critical. India has faced one of its steepest tariff challenges after the US imposed duties of up to 50% on certain Indian exports—among the highest applied to any major American trading partner apart from Brazil.

Despite this, India’s trade has held up better than expected. Merchandise exports in April–November 2025–26 stood at $292.07 billion, up from $284.60 billion a year earlier, while imports rose to $515.21 billion from $487.93 billion.

MSME exports account for about 45% of India’s total exports, but smaller firms continue to face high borrowing costs, limited collateral and weak access to overseas buyers. By combining market access support with targeted credit interventions, EPM aims to address both demand-side and supply-side constraints and help MSMEs integrate more deeply into global value chains.

How big is India’s MSME base?

India has about 74.4 million registered MSMEs. Maharashtra leads with around 9.7 million units, followed by Uttar Pradesh (8.1 million), Tamil Nadu (6.0 million), Karnataka (4.8 million) and Madhya Pradesh (4.6 million).

Nearly 15.6 million MSMEs operate in manufacturing, about 26.5 million in services and close to 32.3 million in trading. Together, they employ roughly 326 million people—highlighting why easier access to export markets and credit can have a broad impact on jobs, exports and economic growth.

What do exporters say?

“The interventions will help exporters, especially labour-intensive MSMEs, in getting affordable credit. As a result, we expect the finance costs of MSME exporters to decrease, making them more competitive in global markets," said Pankaj Chadha, chairman of the Engineering Export Promotion Council (EEPC).

“However, Chapter 72 has been completely left out despite having a major contribution from MSME exporters. We hope the government will consider this chapter in future revisions," he added.

Chapter 72 refers to ‘iron and steel’ under the Harmonised System of international trade classification.