The government plans to announce support measures under the Export Promotion Mission as early as next week for small businesses struggling to absorb 50% US tariffs, according to Union commerce minister Piyush Goyal.
The interest subvention and Market Access Initiative schemes will be rolled out next week, the minister said after the fourth meeting of the reconstituted Board of Trade (BoT) in New Delhi on Tuesday.
The government covers part of the interest on export credit through interest subvention, allowing micro, small, and medium enterprises (MSMEs) to access cheaper loans. The Market Access Initiative funds marketing, branding and overseas promotion activities to help exporters reach new markets.
The Export Promotion Mission will introduce targeted schemes to support landlocked and smaller states, and the Centre and states must work together to expand export capacity, Goyal said, while briefing about the discussions during the meeting, which was broadcast on his YouTube channel.
The MSMEs have sought urgent relief to prevent order cancellations and cash-flow stress after US president Donald Trump imposed the highest 50% tariff on India, including a 25% penalty for buying Russian crude. The two nations are negotiating a bilateral agreement.
At the BoT meeting, several industry bodies told Goyal that restarting interest-subvention and market-support programmes quickly is crucial for labour-intensive sectors such as textiles, leather, handicrafts and pharmaceuticals, where smaller firms have been hit the hardest.
“The rollout of both the schemes will be very helpful for the MSME sector. We hope to get further clarity in the days to come. Clarity on eligibility, timelines and disbursal mechanisms will be crucial for exporters, especially in the last quarter of the year,” said Pankaj Chadda, chairman, Engineering Export Promotion Council.
Vinod Kumar, President, SME Forum, said the MSMEs are under severe pressure after the 50% US tariffs, and the delay in support schemes has added to their stress. “The quick rollout of interest subvention and MAI programmes will give much-needed breathing space, but exporters also need clarity on eligibility and timelines,” said Kumar, adding that smaller firms require easier access to credit, faster documentation support and lower logistics costs to stay competitive in global markets.
Goyal said the government will continue to examine practical suggestions from industry on what more can be done to stabilise export flows at a time of global volatility.
Commerce Secretary Rajesh Agarwal, while briefing on the discussions, said that MSME exporters also suggested that the ministry explore whether the Directorate General of Foreign Trade (DGFT) could provide legal, compliance, and documentation support to smaller firms, as regulatory requirements across markets are becoming increasingly complex.
India’s total goods exports in FY25 stood at $433.56 billion, which is slightly higher than the $433.09 billion recorded in FY24.
Multiple measures
On 12 November, the Union cabinet had approved two major initiatives worth a combined ₹45,060 crore to strengthen India’s export ecosystem and ease liquidity pressures for exporters.
The cabinet cleared the launch of the Credit Guarantee Scheme for Exporters (CGSE) and the Export Promotion Mission (EPM), together marking a significant policy boost for Indian exporters, especially MSMEs.
Under the credit guarantee scheme, the National Credit Guarantee Trustee Co. Ltd will provide 100% credit guarantee coverage to banks and financial institutions for extending additional collateral-free loans of up to ₹20,000 crore to eligible exporters, including MSMEs.
The scheme is aimed at easing liquidity constraints, ensuring smooth business operations and enhancing competitiveness as India works toward the $1 trillion export target. A management committee led by the secretary, department of financial services, will oversee implementation and monitor outcomes.
The Cabinet had also approved the Export Promotion Mission with a total outlay of ₹25,060 crore for FY26 to FY31, consolidating fragmented export support schemes into a unified, outcome-driven framework. Anchored by the department of commerce, it will make export promotion more inclusive, technology-enabled, and responsive to shifting global trade dynamics.
Goyal said India’s export strategy now relies heavily on maintaining the highest quality standards, stressing that the country’s reputation as a reliable supplier depends on consistency. He urged states to share best practices, noting that stronger single-window systems, faster clearances and improved ease-of-doing-business processes could benefit exporters nationwide and foster healthy competition among states.
With discussions on reforming the Special Economic Zones underway, the government remains hopeful of a framework that can attract new investment and integrate SEZs more closely with global value chains. At the meeting, many states, including Gujarat, Assam, Bihar, Rajasthan, Tripura, Uttar Pradesh, Uttarakhand, Goa, Andhra Pradesh and Chhattisgarh, presented their best practices on export promotion and ease of doing business.
Rising internal logistics costs also emerged as a key theme, with several states noting that delays, fragmented clearances and bottlenecks continue to erode the competitiveness of Indian goods even before they reach ports, said Agarwal. The commerce ministry will engage with logistics providers and other stakeholders to identify workable steps that can ease movement costs and improve multimodal connectivity, he said.
Goyal reviewed progress on initiatives announced in past BoT meetings. The Trade Connect ePlatform, launched in September 2024, has recorded over 62 lakh visits and more than 18 lakh registered users, with more than 22 lakh digital Certificates of Origin issued.
The minister also pointed to the extension of the RoDTEP scheme until 31 March 2026, saying it provides much-needed predictability. He said India’s trade diplomacy had gathered momentum with the conclusion of major free trade agreements, including the India–EFTA TEPA in March 2024 and the India–UK trade pact in July 2025, with negotiations underway with several other partners.
Rising internal logistics costs also emerged as a key theme, with several states noting that delays, fragmented clearances and bottlenecks continue to erode the competitiveness of Indian goods even before they reach ports, Commerce Secretary Rajesh Agarwal said while briefing on the discussions. The commerce ministry will engage with logistics providers and other stakeholders to identify workable steps that can ease movement costs and improve multimodal connectivity, he said.