Boosting Exports with a ₹25,000 Crore Push: Government Unveils New Schemes to Enhance International Trade Initiatives

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india Announces $300 Million Export Boost Amidst US Tariff Concerns

New Delhi – The Indian government has formulated a comprehensive Rs 25,000 crore (approximately $300 million USD) initiative designed to invigorate the nation’s export sector. This aspiring Export Promotion Mission will provide crucial financial support to small exporters, particularly those operating within labor-intensive industries such as Textiles, Gems & Jewellery, and Marine Products.

A Six-Year Plan for Lasting Growth

A high-ranking government source has confirmed the proposal has been transmitted to the Finance Ministry for its consideration, with subsequent submission to the cabinet anticipated before full implementation. The overarching goal is to create a supportive ecosystem that fosters export growth over a six-year period. The new schemes are painstakingly designed to align with the regulations set forth by the World Trade Organisation (WTO).

Addressing Export Challenges and Market Diversification

The impetus behind this new package of schemes stems from a previously announced Rs. 2,250 crore mission outlined in the 2025-26 Union Budget, which is yet to be operationalized. Rising uncertainties in the global marketplace, notably the recent increases in US tariffs, have accelerated the need for decisive action. According to the United nations Conference on Trade and Advancement (UNCTAD), global trade growth is projected to slow to 2.7% in 2025, underlining the urgency for India to proactively safeguard its export interests.UNCTAD

Beyond mitigating tariff-related risks, the mission recognizes the strategic importance of diversifying export markets. Efforts will be concentrated on strengthening the logistics infrastructure and enhancing marketing strategies to penetrate new international territories. This proactive diversification strategy aims to reduce reliance on any single market and build a more resilient export base.

Financial Support and MSME empowerment

The government views this strategy as a long-term investment in the country’s economic future, extending beyond immediate tariff disputes. A key focus is to level the playing field for Indian exporters who often face higher interest rates compared to their global counterparts. Providing access to affordable financing will be crucial in bolstering their competitiveness. The plans include offering collateral-free loans, promoting choice financial instruments, and providing targeted assistance for exporters entering new markets.

Recognizing the critical role of Micro, Small, and Medium Enterprises (MSMEs) as the backbone of the Indian economy and largest employer, the schemes will be implemented in close coordination with the MSME Ministry.

Positive Export Trends and Government Initiatives

Despite the challenging global economic environment, India’s merchandise exports demonstrated a positive trajectory in July, registering a 7.29% increase to $37.24 billion compared to $34.71 billion during the same period last year, according to official Commerce Ministry data. Commerce Secretary Sunil Barthwal highlighted the robust performance of both services and merchandise exports, exceeding global growth rates.

The recent surge in goods exports is attributed, in part, to accelerated shipments aimed at pre-empting the impact of higher US tariffs that took effect in August. During the April-July period of the 2025-26 fiscal year, total exports increased by 3.07% to $149.2 billion,while imports rose by 5.36% to $244.01 billion.

Expanding trade Partnerships

In response to the increasing tariffs announced by the United States, the government is prioritizing the swift ratification of free trade agreements and conducting thorough reviews of existing pacts with key partners including the European Union, the United Kingdom, the EFTA nations, Oman, ASEAN, New Zealand, Peru, and Chile. Moreover, targeted efforts are underway to expand export promotion activities to the top 50 importing nations through strategic deployment of trade missions abroad.

Key Metric	Value (as of July 2025)	Year-over-Year Change
Merchandise Exports	$37.24 Billion	+7.29%
Total Exports (Apr-July)	$149.2 Billion	+3.07%
Total Imports (Apr-July)	$244.01 Billion	+5.36%

Did You Know? India’s Gems and Jewellery sector is a major contributor to its export earnings,and is expected to benefit considerably from the new export promotion schemes.

pro Tip: Exporters should familiarize themselves with the specific guidelines of these schemes as they become available to maximize potential benefits.

What strategies do you think will be most effective in diversifying India’s export markets? And, how can the government best support MSMEs in navigating the complexities of international trade?

Understanding Export Promotion Missions

Export promotion missions are government-lead initiatives designed to boost a nation’s exporting capabilities. They often involve financial incentives, market research, trade facilitation, and diplomatic efforts to create favorable conditions for exporters. These missions are especially crucial in a dynamic global trade landscape,helping countries remain competitive and resilient.

Frequently Asked Questions About india’s Export Promotion Mission

• What is the primary goal of the Export Promotion Mission? The mission aims to boost India’s exports by providing financial support and improving market access for exporters.
• Which sectors will benefit the most from these schemes? Labor-intensive sectors like Textiles, Gems & Jewellery, and Marine Products will be the primary beneficiaries.
• How long will the Export Promotion Mission last? The mission is designed as a six-year plan.
• Are the schemes WTO compliant? Yes, all schemes are designed to adhere to World Trade Organisation regulations.
• What is the total financial outlay for the mission? The total financial outlay is Rs 25,000 crore (approximately $300 million USD).
• How will MSMEs be involved in the mission? The schemes will be implemented in coordination with the MSME Ministry, recognizing their crucial role in the Indian economy.
• What is the impact of US tariffs on India’s export strategy? The increase in US tariffs has accelerated the urgency for diversifying export markets and strengthening export promotion schemes.

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How will the enhanced RoDTEP scheme specifically benefit textile, leather, and agricultural product exporters?

Understanding the Export Landscape & Recent Challenges

India’s export sector, a crucial engine for economic growth, has faced headwinds in recent times due to global economic slowdown, geopolitical tensions, and supply chain disruptions. While India consistently ranks among the top 20 exporting nations,maximizing its potential requires strategic interventions.The recently announced ₹25,000 crore package aims to address these challenges and propel Indian exports to new heights. This initiative focuses on bolstering export promotion, streamlining trade facilitation, and enhancing the competitiveness of Indian products in the global market. Key areas of concern previously included high logistics costs, complex export procedures, and limited market access for SMEs.

Key schemes Under the ₹25,000 Crore Package

The government’s extensive plan encompasses several new and revamped schemes designed to support exporters across various sectors. Here’s a breakdown of the major components:

Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme Enhancement: RoDTEP, already in place, will receive a notable boost. This scheme refunds embedded costs – taxes and duties – that are not directly refunded under GST. The increased allocation will broaden the scope of eligible products and perhaps increase refund rates,making Indian goods more price-competitive. Focus areas include textiles, leather, and agricultural products.

Export Infrastructure Development: A significant portion of the funds will be allocated to upgrading export-related infrastructure. This includes:

Modernizing ports and harbors to reduce turnaround times and logistics costs.

Developing dedicated freight corridors to improve connectivity.

establishing common facilities for packaging, testing, and warehousing.

Trade Logistics Efficiency Enhancement: This initiative aims to simplify and digitize export procedures.Key elements include:

Implementation of a unified logistics portal for seamless facts exchange.

Reducing documentation requirements through digitalization and automation.

Streamlining customs clearance processes.

export promotion Schemes for Specific Sectors: Targeted schemes will be launched to support key export sectors like engineering goods, pharmaceuticals, and chemicals. These schemes may include financial assistance for technology upgrades, marketing support, and participation in international trade fairs.

Common Manufacturing Facility Scheme: Establishing common manufacturing facilities for export-oriented products, particularly for MSMEs, to reduce capital expenditure and enhance production capabilities.

Benefits for Indian Exporters – A sector-Wise Analysis

The ₹25,000 crore package is expected to yield significant benefits across various export sectors.

Textile Exports: The enhanced rodtep scheme will directly benefit textile exporters by offsetting embedded costs,making them more competitive against countries like Bangladesh and Vietnam. Increased investment in textile infrastructure will also improve efficiency.

Engineering Goods: Financial assistance for technology upgrades and marketing support will help engineering goods exporters meet international quality standards and expand their market reach.

Pharmaceuticals: The package will support the development of new pharmaceutical formulations and enhance the competitiveness of Indian generic drugs in the global market. Focus on regulatory compliance and quality control will be crucial.

Agricultural Exports: Improved infrastructure for storage, transportation, and processing will reduce post-harvest losses and enhance the quality of agricultural exports. Promoting value-added agricultural products will also be a priority.

MSME Sector: The common manufacturing facility scheme and simplified export procedures will particularly benefit MSMEs, enabling them to participate more actively in international trade. small and Medium enterprises (SMEs) frequently enough face significant barriers to entry in the export market.

Navigating the New Schemes: A Practical Guide for Exporters

Here’s a step-by-step guide for exporters to leverage the new schemes:

1. Stay Informed: regularly visit the websites of the Directorate General of Foreign Trade (DGFT) and the Ministry of Commerce and Industry for updates on scheme guidelines and submission procedures.
2. Identify Eligible Schemes: Assess which schemes are relevant to your specific products and export markets.
3. Prepare Documentation: Gather all necessary documents, including export orders, invoices, and certificates of origin.
4. Apply Online: Submit applications through the designated online portals.
5. Seek Expert Assistance: Consider consulting with export promotion councils or trade consultants for guidance on navigating the application process.

Real-World Impact: Case Study – Automotive Component Exports

In 2023, the Automotive Component Manufacturers Association of India (ACMA) reported a 10% increase in exports, partially attributed to the RoDTEP scheme. Companies like Bharat Forge and Motherson Sumi Systems benefited from the scheme, allowing them to offer more competitive pricing in key markets like the US and Europe. The upcoming infrastructure improvements are expected to further boost the automotive component export sector by reducing logistics costs and improving supply chain efficiency. This demonstrates the tangible impact of