The Union Cabinet has approved a six-year Export Promotion Mission worth Rs 25,060 crore to bolster Indian exports facing a 50 per cent US tariff hit. This comes as shipments to the US declined 12 per cent in September. The mission targets key sectors like textiles and engineering goods to sustain jobs and diversify markets.
On Wednesday, amid escalating pressures from steep 50 per cent US tariffs effective August 27, the Union Cabinet approved the Export Promotion Mission (EPM) with an outlay of Rs 25,060 crore for the period FY 2025–26 to FY 2030–31. This initiative, announced in this year's Budget, consolidates schemes like the Interest Equalisation Scheme and Market Access Initiative to address contemporary trade needs through a digital framework.
The tariffs, the highest globally following the China-US trade deal, have impacted Indian exports significantly. Official data shows a 12 per cent decline in shipments to the US in September, with engineering goods—comprising nearly a quarter of total exports—dropping 9.4 per cent. Priority support under EPM will go to sectors such as textiles, leather, gems and jewellery, engineering goods, and marine products, aiming to sustain orders, protect jobs, and enable diversification into new geographies.
Railway Minister Ashwini Vaishnaw highlighted the mission's focus during a post-Cabinet briefing: “The scheme is focused on the availability of credit and reducing the cost of credit, and focuses on MSME exporters so that they can expand to newer export markets.” It also covers costs for non-tariff barriers, including compliance with standards, certifications, and participation in international exhibitions, alongside logistics, branding, and packaging support.
Additionally, the Cabinet approved the Credit Guarantee Scheme for Exporters (CGSE), providing 100 per cent coverage up to Rs 20,000 crore for collateral-free credit to eligible exporters, including MSMEs, to enhance liquidity and global competitiveness.
Industry leaders welcomed the move. Confederation of Indian Textile Industry Chairman Ashwin Chandran noted it would make the sector globally competitive and help leverage free trade agreements. FIEO President S C Ralhan emphasized its role in tackling finance access, compliance costs, and logistics bottlenecks for MSMEs. The Gems and Jewellery Export Promotion Council praised inclusions like interest subvention and trade fair support for wider outreach.
The US remains India's largest market for textiles and apparel, accounting for 28 per cent of exports worth nearly $11 billion in 2024-25. In September 2025, textile exports fell 10.45 per cent year-on-year, apparel 10.14 per cent, and cumulative exports 10.34 per cent.