India proposes Rs 25,000 crore export boost scheme for small exporters
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New Delhi: The Ministry of Commerce and Industry has proposed a Rs 25,000 crore package of WTO-compliant support schemes aimed at boosting exports, particularly for small exporters in labour-intensive sectors such as textiles, gems and jewellery, and marine products. The proposal, designed under the Export Promotion Mission for a six-year period, has been sent to the Finance Ministry for approval and will subsequently be forwarded for Cabinet clearance before implementation.
The schemes will focus on trade finance and improving market access for exporters while remaining compliant with World Trade Organisation regulations. This new package follows a previously announced Rs 2,250 crore mission under the 2025-26 Union Budget, which has yet to be rolled out. The urgency for these initiatives has increased due to uncertainties in the international market following a hike in US tariffs.
The government intends for the schemes to diversify both markets and export baskets, develop logistics chains, and strengthen marketing support for Indian exporters. The strategy aims to address long-term challenges beyond tariffs and trade wars, including high interest rates in the Indian banking sector, which put exporters at a disadvantage compared to international competitors. The schemes will offer collateral-free loans, alternative financial instruments, and assistance in entering new markets, and will be implemented in coordination with the Ministry of MSME, the largest employer in the country.
India’s merchandise exports rose 7.29 per cent to $37.24 billion in July 2025, compared with $34.71 billion in the same month last year, according to Commerce Ministry data. Commerce Secretary Sunil Barthwal noted that despite an uncertain global policy environment, both goods and services exports have grown substantially so far in FY26, outperforming global export growth.
The surge in goods exports was also driven by accelerated shipments ahead of the US tariff increase in August. During April-July 2025-26, exports rose 3.07 per cent to $149.2 billion, while imports increased 5.36 per cent to $244.01 billion.
Barthwal added that the government is actively working to diversify India’s export destinations following the US tariff hike, fast-tracking free trade agreements, and reviewing existing pacts with countries and regions, including the EU, UK, EFTA, Oman, ASEAN, New Zealand, Peru, and Chile. Efforts are also underway to expand export promotion efforts to the top 50 importing nations through targeted missions abroad.
With IANS inputs