India Unveils ₹2,250 Crore Export Push to Counter Global Tariffs and Trade Shocks

The Indian government plans to roll out a ₹2,250 crore Export Promotion Mission to protect domestic industries from global trade shocks—especially the steep 50% tariffs recently imposed by the US. Announced on 1 February 2025, the mission is built on two pillars: NIRYAT PROTSAHAN (Trade Finance Support) and NIRYAT DISHA (Holistic Market Access).

Key measures include easier credit for MSMEs and e-commerce exporters, overseas warehousing assistance, and global branding support. The Directorate General of Foreign Trade (DGFT) shared the plan with stakeholders on 30 April.

The initiative comes at a time when India’s exports stayed flat at $35.14 billion in June, with the trade deficit narrowing to $18.78 billion. In Q1 FY26, exports rose 1.92% to $112.17 billion, while imports climbed 4.24% to $179.44 billion.

Mission Breakdown: NIRYAT PROTSAHAN and NIRYAT DISHA

The mission is anchored on two distinct pillars:

NIRYAT PROTSAHAN (Trade Finance Support)

Eases access to competitive export credit through targeted schemes and digital facilitation tools:

• Focuses on easing access to export credit, especially for MSMEs and e-commerce exporters.
  
• Includes sub-schemes like NIRVIK (interest equalisation), BharatTradeNET (digital trade facilitation), and collateral support mechanisms.
  
• NIRVIK aims to benchmark interest subvention rates against global competitors like Vietnam and Bangladesh, ensuring Indian exporters can access rupee credit at globally competitive rates.
  
• Exporters availing credit under this scheme will be subject to a cap, reviewed periodically, and a negative list of items, such as low-value-addition goods, will be excluded.
  

NIRYAT DISHA (Market Access Enablement)

Targets comprehensive international market access to six sub-initiatives:

• FLOW (Facilitating Export Logistics and Overseas Warehousing)
  
• GLOBE (Global Outreach for Branding Exports)
  
• TRACE (Technical Regulations and Compliance Enablement)
  
• FMAI (Focussed Market Access Initiative)
  
• EXPAND (District Export Planning)
  
• InCent-LGD (R&D support for lab-grown diamonds at IIT Madras)
  

These initiatives aim to reduce non-tariff barriers, improve branding, and enable district-level export planning.

Importance of Export Promotion Mission

To understand the relevance of the ₹2,250 crore Export Promotion Mission, go through the following:

MSME and E-Commerce Boost

The mission’s MSME and e-commerce strategy is multifaceted, addressing structural and operational challenges:

• Easy Credit Schemes: Exporters will be eligible for fully or partially collateral-free loans, capped based on credit history and export performance. The ₹20 crore term loan facility announced in Budget 2025 is expected to be integrated into this mission.

• Overseas Warehousing: The government plans to subsidise warehousing infrastructure in key export destinations. This will reduce delivery timelines, improve inventory management, and enable just-in-time fulfillment for e-commerce exporters.

• Global Branding Initiatives: Inspired by models from Japan and Switzerland, the mission will fund branding campaigns for Indian products in sectors like handicrafts, processed foods, and leather goods. MSMEs will also benefit from the International Cooperation Scheme, which provides financial support for participation in global trade fairs.

• E-Commerce Export Hubs (ECEHs): Piloted by DGFT, these hubs will streamline customs clearance, returns management, and logistics for small exporters. They are expected to reduce compliance costs and improve turnaround times for cross-border shipments.

Tariff Diplomacy and Sectoral Insulation

The mission is a direct response to the 50% retaliatory tariffs imposed by the United States on Indian goods, which disproportionately affect labour-intensive sectors:

• Textiles: India exports approximately $11 billion worth of textiles to the US, accounting for 9% of its total textile imports. The mission prioritizes this sector through RoSCTL benefits and branding support.

• Chemicals: With $6 billio n in exports to the US, the chemical sector faces steep cost escalations. The mission includes interest subvention and expedited RoDTEP dues to maintain competitiveness.

• Leather and Footwear: These sectors are targeted under a new focus product scheme announced in Budget 2025, which aims to generate ₹1.1 lakh crore in exports and create 22 lakh jobs.

The government is also encouraging exporters to diversify markets, with export councils identifying alternative destinations in Southeast Asia, Africa, and Latin America.

Domestic vs Global Balance

While the mission is export-centric, it also seeks to stimulate domestic consumption to offset external shocks:

• GST Rationalisation: The GST Council is expected to meet to simplify rates and review the compensation cess. This will reduce input costs and improve affordability for domestic consumers.

• Import Substitution: Budget 2025 promotes domestic manufacturing in electronics, pharmaceuticals, and semiconductors under the Atmanirbhar Bharat initiative. This reduces dependency on imports and strengthens the trade balance.

• Consumption -Led Growth: Welfare schemes and targeted subsidies are being used to boost spending power. This dual strategy ensures that domestic demand remains resilient even as export markets fluctuate.

Stakeholder Engagement and Fiscal Relief

The DGFT has conducted extensive consultations with export promotion councils and industry bodies to tailor the mission’s components:

• RoDTEP and RoSCTL: These schemes are being extended to cover SEZs, EOUs, and Advance Authorisation holders. The latest alignment of RoDTEP rates was notified on 1 June 2025.

• Port-Charge Reductions: Exporters have demanded lower port handling fees and faster customs clearance. These are under review, with the GK Pillai committee assessing implementation feasibility.

• Prompt Dues Settlement: Exporters have flagged delays in incentive disbursements. The mission includes a digital dashboard for tracking RoDTEP claims and settlement timelines.

Geopolitical Context and Trade Strategy

The mission is embedded within India’s broader trade diplomacy framework:

• India-US Negotiations: The sixth round of bilateral trade talks is scheduled for 25 August, with Washington seeking concessions on industrial goods, dairy, EVs, and GM crops. India is leveraging the mission to strengthen its negotiation position by showcasing domestic resilience and export diversification.

• India-Oman CEPA: Negotiations concluded in August 2025, marking a strategic expansion into the Gulf region. Oman is India’s third-largest GCC export destination, with bilateral trade exceeding $10 billion in 2024–25.

• FTA Pipeline: India has signed five major FTAs in the past five years and is pursuing deals with the EU, Australia, Sri Lanka, Peru, Chile, and New Zealand. The mission complements these efforts by preparing exporters to meet regulatory and quality standards in new markets.

Conclusion

India’s ₹2,250 crore Export Promotion Mission is a timely, strategic push to fortify exporters against global trade headwinds and high tariffs. Through NIRYAT PROTSAHAN and NIRYAT DISHA, it blends credit support, market access, branding, and sector-specific relief. By balancing export growth with domestic resilience, it strengthens India’s trade position, fosters MSME participation, and prepares industries to compete globally while navigating evolving geopolitical and economic challenges.

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