Govt launching Rs 25,000 crore worth of schemes to boost exports

New Delhi, Aug 24 (IANS) The Ministry of Commerce and Industry has drawn up a Rs 25,000 crore proposal for WTO-compliant support schemes, mainly to help finance small exporters in labour-intensive sectors such as textiles, gems & jewellery, and marine products under the Export Promotion Mission for a six-year period.

A senior official confirmed that the proposal has been sent to the Finance Ministry for approval, after which it will be forwarded for Cabinet approval before it is finally rolled out.

These schemes have been designed to be compliant with World Trade Organisation (WTO) regulations and will focus on trade finance and improving market access for exporters.

The new package of schemes under the Export Promotion Mission follows the Rs. 2,250 crore mission announced in the 2025-26 Union Budget, which has not yet been rolled out. The launch has gained further urgency given the uncertainties in the international market due to the hike in US tariffs.

There is a need to diversify markets, and the schemes will also focus on developing the logistics chain and marketing to diversify markets for Indian exports.

The government views this mission as a long-term strategy that addresses challenges beyond just tariffs and trade wars. The strategy includes promoting exports, diversifying both markets and the export baskets to make them more competitive. The high interest rates in the Indian banking sector tend to put the country’s exporters at a disadvantage vis-a-vis their competitors, and financing on more affordable terms would help to bridge this gap.

The schemes aim to help exporters by offering collateral-free loans, supporting alternative financial instruments, and providing assistance for new markets.

The schemes will be implemented in coordination with the MSME Ministry, as the sector is the highest employer in the country.

India's merchandise exports registered a 7.29 per cent increase to $37.24 billion in July this year, compared with the corresponding figure of $34.71 billion in the same month last year, according to the latest data compiled by the Commerce Ministry.

"Despite an uncertain global policy environment, India's services and merchandise exports in July and in FY26 so far have grown substantially, and are much higher than the global exports growth," Commerce Secretary Sunil Barthwal said.

The surge in goods exports is also due to stepped-up shipments as exporters ahead of the higher US tariffs that have kicked in from August.

During April-July 2025-26 of the current financial year, exports have now registered an increase of 3.07 per cent to $149.2 billion, while imports have risen by 5.36 per cent to $244.01 billion during this period.

Barthwal further stated that the government is making efforts to diversify the country’s exports to other countries, following the steep hike in tariffs announced by the US. The government is seeking to fast-track free trade pacts and carry out a review of existing pacts such as those with the EU, the UK, the EFTA, Oman, the ASEAN, New Zealand, Peru, and Chile.

He also said that the government wants to strengthen export promotion schemes. He said steps were being taken to expand focus to the top 50 importing nations via the mobilisation of missions abroad for export promotion efforts.

--IANS

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