attack AMID pressure – AMID pressure on goods exports to the US due to high 50 per cent tariffs, the Union Cabinet on Wednesday extended additional credit facilities up to Rs 20,000 crore to exporters, and also approved a six-year Export Promotion Mission with an outlay of Rs 25,060 crore announced in the Budget this year. The decision comes at a time when the impact of tariffs has begun to show with shipments to the US in September declining by 12 per cent. Engineering goods exports, which make up nearly a quarter of India’s total goods outbound shipments, dropped 9.
4 per cent to the US, official data showed. Steep 50 per cent US tariffs came into effect on August 27. After the China-US trade deal, tariffs on India are the highest globally.
Story continues below this ad Also Read | Cabinet approves new royalty rates for four critical minerals Under EPM, priority support will be extended to sectors impacted by recent global tariff escalations, such as textiles, leather, gems & jewellery, engineering goods, and marine products. The interventions will help sustain export orders, protect jobs, and support diversification into new geographies, a statement released by the Cabinet said. “The scheme is focused on the availability of credit and reducing the cost of credit, and focuses on MMSE exporters so that they can expand to newer export markets,” Railway Minister Ashwini Vaishnaw said during the press briefing after the Cabinet meeting.
“There are several countries that have imposed strict standards to discourage imports into their territory. The mission will also help meet the costs that exporters face to tackle non-tariff barriers such as compliance with standards, technical measures as well and certifications. The mission also has an element of market acquisition that will help with the cost of MSMEs to exhibit their goods in international exhibitions,” Vaishnaw said.
Logistics cost, branding and packaging will also be covered under the scheme. “The mission will provide a comprehensive, flexible, and digitally driven framework for export promotion, with a total outlay of Rs 25,060 crore for FY 2025–26 to FY 2030–31. It consolidates key export support schemes such as the Interest Equalisation Scheme and Market Access Initiative, aligning them with contemporary trade needs,” the statement said.
Story continues below this ad The Credit Guarantee Scheme for Exporters (CGSE) approved by the Cabinet will provide 100 per cent coverage by the National Credit Guarantee Trustee Company Limited to member lending institutions for extending additional credit facilities up to Rs 20,000 crore to eligible exporters, including MSMEs. “It is expected to enhance the global competitiveness of exporters and support diversification into new and emerging markets.
By enabling collateral-free credit access under CGSE, it will strengthen liquidity, ensure smooth business operations,” the statement said. Confederation of Indian Textile Industry (CITI) Chairman Ashwin Chandran said the Export Promotion Mission will ensure the textile and apparel sector becomes globally competitive, better placed to leverage the opportunities opening through the FTAs, and diversify into newer markets. The imposition of a 50 per cent US tariff on Indian goods, effective August 27, had taken a heavy toll on the textile and apparel exports in September.
The US is the single largest market for India’s textile and apparel exports, contributing almost 28 per cent to the total revenue of India’s textile and apparel exporters. India’s textile and apparel exports to the US stood at nearly $11 billion in 2024-25.
According to CITI’s analysis, in September 2025, textile exports slid 10. 45 per cent over the previous year, while apparel exports declined 10. 14 per cent during the same period.
Cumulative exports of textiles and apparel items during September 2025 declined 10. 34 per cent over September 2024, it said. Story continues below this ad S C Ralhan, President, FIEO, said, “By bringing together financial and non-financial interventions under a unified framework, the mission provides much-needed continuity, flexibility, and responsiveness to global trade dynamics.
It will particularly empower MSMEs, who often struggle with access to affordable finance and compliance support. ” “EPM is a timely response to the structural challenges that have long blunted the competitive edge of Indian exports — from limited access to finance and high compliance costs to weak branding and logistics bottlenecks.
By directly tackling these issues, the initiative will help sustain export momentum, safeguard employment, and diversify India’s export base into new geographies and emerging sectors,” he said. The Gems and Jewellery Export Promotion Council (GJEPC) said inclusion of key measures such as interest subvention and expanded support for trade fairs will particularly empower MSMEs and first-time exporters, fostering wider global outreach and sustainable growth.