The Government of India, on Friday, 20 February 2026 has unveiled seven new interventions under the Export Promotion Mission (EPM) to accelerate exports from micro, small and medium enterprises (MSMEs), with a strong focus on cheaper credit, logistics support and easier access to global markets. These measures are part of a five-year programme aimed at building a more competitive and resilient export ecosystem between 2025-26 and 2030-31.
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What is the Export Promotion Mission (EPM)?
The Export Promotion Mission is a centrally supported, five-year initiative approved by the Union cabinet to strengthen India’s export ecosystem. It is designed to reduce export costs, widen access to trade finance, diversify markets and enhance competitiveness, especially for MSMEs.
Highlights
- Seven new interventions launched under the Export Promotion Mission to boost MSME exports and global competitiveness.
- Cheaper trade finance through export factoring, interest subvention and dedicated credit for e-commerce and overseas inventory.
- FLOW and LIFT schemes reduce logistics and freight costs while supporting overseas warehousing and fulfilment infrastructure.
- TRACE helps MSMEs meet global quality and regulatory standards by reimbursing testing, inspection and certification costs.
- INSIGHT and other facilitation measures strengthen district-level export ecosystems and help first-time and small exporters enter new markets.
Key features of the EPM include:
- Programme duration from 2025-26 to 2030-31.
- Announced in the Union Budget 2025-26 and jointly implemented by the Department of Commerce, the Ministry of MSME and the Ministry of Finance, with DGFT as the nodal agency.
- A total outlay of ₹25,060 crore, with ₹10,400 crore for Niryat Protsahan (export promotion) and ₹14,660 crore for Niryat Disha (export direction).
Overall Objectives of the Mission
The EPM has been structured to address long-standing structural challenges that hinder MSMEs from scaling up in global markets. Its core objectives include:
- Lowering the cost of exporting through interest subvention and freight support.
- Expanding availability of trade finance, especially for smaller and e-commerce exporters.
- Diversifying export markets and enabling entry into new or high-risk destinations through shared-risk instruments.
- Improving compliance, standards, and logistics, so Indian exporters can compete more effectively worldwide.
Commerce and Industry Minister Piyush Goyal has emphasised that the mission is meant to help MSMEs integrate more effectively with global markets and benefit from India’s growing network of free trade agreements (FTAs).
Seven New EPM Interventions Launched
The government has now launched seven additional interventions under the EPM, mainly grouped under the Niryat Protsahan and Niryat Disha pillars. These come on top of three measures already being implemented, taking the total operational interventions to ten out of the eleven proposed under the Mission.
1. Export Factoring Support with Interest Subvention
Under Niryat Protsahan, exporters will receive support for export factoring with an interest subvention of 2.75%. This support is capped at ₹50 lakh per MSME per year, helping firms manage their working capital and reduce the cost of post-shipment finance.
2. Direct E-commerce Credit Facility
A structured credit facility has been introduced for e-commerce exporters, reflecting the growing importance of digital trade. This includes a direct e-commerce credit facility of up to ₹50 lakh with 90% guarantee coverage, making it easier for small online sellers to access formal credit.
3. Overseas Inventory Credit Facility
To help exporters maintain stock closer to foreign buyers, an overseas inventory credit facility of up to ₹5 crore has been announced, with 75% guarantee coverage. This is expected to support e-commerce and traditional exporters who rely on overseas warehousing and faster delivery cycles.
For both the e-commerce credit and overseas inventory credit, interest subvention of 2.75% will apply, subject to an annual ceiling of ₹15 lakh per applicant.
4. Support for Emerging Export Opportunities
The Mission also provides support for accessing new or high-risk markets through shared-risk and credit instruments. This intervention is aimed at helping exporters diversify beyond traditional markets and capture demand in emerging destinations, where commercial risk is typically higher.
5. TRACE: Trade Regulations, Accreditation and Compliance Enablement
Under Niryat Disha, the TRACE intervention focuses on compliance, accreditation, testing and certification. It will offer partial reimbursement of 60–75% of eligible testing, inspection and certification expenses, capped at ₹25 lakh per importer-exporter code (IEC) annually. This can significantly ease the burden of meeting stringent technical and quality standards in advanced markets.
6. FLOW: Facilitating Logistics, Overseas Warehousing and Fulfilment
The FLOW initiative is designed to strengthen logistics and fulfilment infrastructure abroad. It will support overseas warehousing, fulfilment centres and e-commerce export hubs with assistance of up to 30% of the approved project cost, for up to three years. This step aims to reduce delivery times, improve reliability and support Indian exporters in key global hubs.
7. LIFT and INSIGHT: Logistics and Trade Intelligence
Two additional schemes, LIFT and INSIGHT, target freight costs and trade intelligence.
LIFT (Logistics Interventions for Freight and Transport) will reimburse up to 30% of eligible freight expenditure, capped at ₹20 lakh per IEC per year, to offset geographical disadvantages and make exports from remote or hinterland regions more viable.
INSIGHT (Integrated Support for Trade Intelligence and Facilitation) will fund trade intelligence, district-level facilitation and capacity building with financial assistance of up to 50% of project cost.
These interventions are expected to strengthen information access and local-level export facilitation networks.
Existing Interventions Already in Place
Before the latest announcement, three EPM interventions were already under implementation. These include:
- Market access support to help exporters participate in international fairs, buyer–seller meets and other promotional activities.
- Interest subvention for pre- and post-shipment export credit, reducing borrowing costs for MSMEs.
- Collateral support for export credit, making it easier for smaller firms to obtain bank finance by reducing the need for high-value collateral.
With the new launch, ten out of eleven interventions under the Mission are now operational, indicating rapid rollout of the programme.
Why These Measures Matter for MSMEs
MSMEs often struggle with high credit costs, stringent collateral requirements, logistics bottlenecks and compliance burdens when exporting. The new EPM interventions are designed to directly address these pain points.
Key expected benefits for MSMEs include:
- Improved cash flow through interest subvention and factoring support, easing working capital constraints.
- Better access to credit for e-commerce and traditional exporters, backed by high guarantee coverage and collateral support.
- Lower logistics costs via freight reimbursements and support for overseas warehousing and fulfilment facilities.
- Reduced compliance costs through reimbursement of testing, inspection and certification expenses.
- Stronger market intelligence and facilitation support at the district level, helping new exporters get started.
Industry leaders have noted that interest subvention and freight support can significantly enhance the global competitiveness of MSME manufacturers, provided implementation is timely and coordination with banks is smooth.
Role of FTAs and New Export Opportunities
The export push under EPM is also linked to India’s expanding network of free trade agreements. According to Commerce Minister Piyush Goyal, nearly 70% of global GDP and around two-thirds of global trade are now accessible to India through nine concluded FTAs, including the first tranche of a bilateral trade agreement with the United States.
He also highlighted that India recorded double-digit growth in merchandise exports in the first half of February, indicating strong demand and industry participation. Additionally, India’s growing presence in emerging technologies such as artificial intelligence, machine learning and quantum computing is expected to create new export avenues in services and digital trade.
Inclusive Growth and Social Impact
The EPM has been explicitly linked to the broader goal of inclusive and equitable growth. The minister has underlined that social justice requires expanding economic opportunities to those at the bottom of the pyramid, and enhancing MSME exports is an important pathway to achieve that.
By enabling smaller firms and entrepreneurs to connect with global markets, these interventions can support job creation, regional development and a more diversified industrial base.
Summing up: The seven new interventions under India’s Export Promotion Mission mark a significant step towards building a more supportive environment for MSME exporters. With targeted support for credit, logistics, compliance and market intelligence, the Mission is positioned to help small businesses compete more effectively in global markets and leverage the wider access provided by India’s growing network of trade agreements.
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