In recent months, India has taken several decisive steps to strengthen its export ecosystem, particularly for Micro, Small and Medium Enterprises (MSMEs). Recognizing that MSMEs form the backbone of India’s export economy—contributing nearly half of the country’s exports—the government has unveiled a comprehensive set of measures to enhance both logistics efficiency and financial access. These initiatives aim to make Indian MSME exporters globally competitive by addressing long-standing challenges such as high logistics costs, limited working capital, and compliance barriers.
1. The Export Promotion Mission: A Strategic Overhaul
In early 2026, the Ministry of Commerce launched the ₹25,060 crore Export Promotion Mission (EPM), designed to support exporters through financial and non-financial interventions. According to official reports, the EPM is built around two integrated sub-schemes — Niryat Protsahan and Niryat Disha — each targeting a distinct area of exporter enablement.
Niryat Protsahan: Strengthening Trade Finance
Niryat Protsahan focuses on expanding access to affordable credit and modern trade finance solutions for MSMEs. Under this sub-scheme, exporters can benefit from:
- Interest subvention on pre- and post-shipment credit to lower financing costs.
- Export factoring support to improve working capital liquidity.
- Credit enhancement and guarantee coverage for exporters entering higher-risk international markets.
- Credit cards for e-commerce exporters to simplify online trade transactions.
As part of this framework, the Credit Assistance for E-Commerce Exporters initiative was launched by the Directorate General of Foreign Trade (DGFT) in March 2026. It provides working capital support to MSMEs engaged in cross-border e-commerce through credit guarantees and interest subsidies, implemented via the Export-Import Bank of India (Exim Bank) in coordination with the National Credit Guarantee Trustee Company (NCGTC).
Niryat Disha: Building Non-Financial Competitiveness
Niryat Disha complements the financial side by focusing on export readiness and logistics improvement. It provides assistance for quality testing, certification, packaging, global branding, and participation in international trade fairs. Additionally, the scheme promotes capacity building through district-level facilitation and exporter training programs.
2. The FLOW Scheme: Reducing Logistics Bottlenecks
To address overseas logistics constraints, the DGFT introduced the Facilitating Logistics, Overseas Warehousing & Fulfilment (FLOW) scheme in February 2026. This initiative supports the development and leasing of overseas warehouses, distribution centers, and fulfilment infrastructure for Indian exporters.
Under FLOW:
- Financial assistance covers up to 30% of the project cost, limited to eligible lease, rental, and operational expenses.
- Projects must ensure that at least 20% of annual merchandise volume benefits Indian MSMEs.
- Assistance is available for up to three years, enabling exporters to establish a stable overseas presence and faster delivery networks.
This scheme marks a significant shift toward tackling one of the biggest cost drivers in export trade—global logistics. By promoting shared overseas infrastructure, MSMEs gain the ability to store, display, and distribute goods closer to their international buyers.
3. Restoring RoDTEP Rates to Boost Export Viability
In March 2026, the government also restored full benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme, which refunds embedded taxes and levies that are not reimbursed elsewhere. The restored RoDTEP rates apply from February 21 to March 31, 2026, allowing exporters relief from recent trade disruptions.
The reinstatement is particularly vital for MSMEs in sectors such as textiles, engineering goods, and chemicals, where thin margins make tax remission critical for maintaining competitiveness.
4. Expanding E-Commerce Export Support
To enable MSMEs to tap into the growing demand in international e-commerce markets, the government has introduced Direct E-Commerce Credit and Overseas Inventory Credit Facilities.
The Direct E-Commerce Credit Facility provides support of up to ₹50 lakh with 90% guarantee coverage, while the Overseas Inventory Credit Facility offers up to ₹5 crore with 75% guarantee coverage and a 2.75% interest subvention. These initiatives reduce financial risk for exporters using digital export platforms and encourage greater participation in global e-commerce trade.
5. Focus on Compliance and Market Access
Under the TRACE (Trade Regulations, Accreditation and Compliance Enablement) program, exporters receive reimbursement for expenses related to international testing, certification, and conformity assessments. The government provides up to 75% reimbursement for priority-listed activities, capped at ₹25 lakh per Import Export Code (IEC). This support helps MSMEs align with global quality and compliance standards, lowering barriers to new markets.
6. A Holistic Push Toward Global Integration
Taken together, these initiatives form a comprehensive platform for MSMEs to access finance, modernize logistics, and comply with global standards. The dual focus on trade finance (through Niryat Protsahan) and logistics enablement (through Niryat Disha and FLOW) reflects a deep policy recognition that competitiveness depends on both cost efficiency and operational agility.
By investing in digital trade infrastructure, overseas warehousing, and credit-backed e-commerce exports, India is positioning its MSME exporters to integrate more effectively into global value chains. As these measures gain traction, they are expected to not only reduce transaction costs but also expand market opportunities for thousands of small businesses aiming to reach the world stage.
Summing up: India’s evolving export promotion framework demonstrates a strong policy commitment to MSME empowerment. By addressing both financing gaps and logistical inefficiencies, the government is laying the groundwork for sustainable export-led growth. With continued implementation and industry participation, these reforms could redefine India’s position as a reliable and competitive global supplier across sectors.