Government Unveils ₹25,000 Crore Export Promotion Package to Boost Indian Trade

25000 crore pacakge



A Big Push for Exporters

In a landmark move, the Indian government has launched a ₹25,000 crore Export Promotion Mission (EPM) to strengthen the country’s export sector over the next six years (2025–2031). The scheme comes at a time when global trade faces rising protectionism, tariff barriers, and geopolitical uncertainties.

The package is designed to shield Indian exporters from tariff shocks while simultaneously helping them tap into new international markets. Officials from the Ministry of Commerce and Industry confirmed that this will be one of the largest coordinated export-support programs in India’s history.

Key Features of the EPM Package

The mission introduces two flagship programs:

  1. Niryat Protsahan (Export Incentive Scheme):

    • Offers direct financial incentives to exporters facing tariff hikes.

    • Covers sectors such as textiles, pharmaceuticals, electronics, and agriculture.

    • Aims to ensure Indian products remain competitive in global markets.

  2. Niryat Disha (Market Expansion Scheme):

    • Focuses on helping exporters enter untapped regions such as Africa, Latin America, and Eastern Europe.

    • Provides funding for trade fairs, market studies, and building overseas distribution networks.

Together, these schemes aim to create a robust safety net for exporters, ensuring that sudden changes in international trade policies do not derail India’s export growth.

Why This Matters Now



India’s export sector has faced multiple headwinds in recent years:

  • Global Tariffs: With the U.S. and EU introducing stricter import rules, Indian exporters have faced heavy compliance costs.

  • Geopolitical Tensions: Conflicts in Europe and the Middle East have disrupted shipping routes, increasing freight costs.

  • Currency Fluctuations: Unstable foreign exchange markets have made Indian goods more expensive abroad.

The government’s ₹25,000 crore package directly addresses these challenges, ensuring Indian exporters have both the financial cushioning and strategic support needed to thrive.

Expected Benefits

  • Higher Export Volumes: The package is projected to boost annual exports by at least 10–12% over the next three years.

  • Job Creation: Export-driven industries, especially textiles and MSMEs, are expected to generate millions of new jobs.

  • Global Competitiveness: With subsidies and support, Indian goods may become more price-attractive in markets dominated by China, Vietnam, and Bangladesh.

  • Diversified Markets: By expanding into Africa and Latin America, India reduces dependence on traditional buyers like the U.S. and Europe.

Reactions from Industry and Experts

  • Exporters’ Associations: Industry bodies like FIEO (Federation of Indian Export Organisations) welcomed the scheme, calling it “a timely lifeline for struggling exporters.”

  • Economists: Experts argue that while the package is ambitious, success will depend on efficient implementation and removing bureaucratic hurdles.

  • Small Businesses: MSMEs, which account for nearly 40% of India’s exports, are expected to be the biggest beneficiaries.

The Bigger Picture

This initiative is part of India’s broader goal to become a $5 trillion economy and boost annual exports to $1 trillion by 2030. The package not only reflects India’s economic ambitions but also underscores its intent to play a stronger role in global supply chains.

Conclusion

The ₹25,000 crore EPM package is more than just an economic policy—it is a strategic move to fortify India’s position in world trade. If implemented effectively, it could help Indian exporters weather global uncertainties, expand into new markets, and drive the nation closer to its long-term growth goals.