GTRI states the Rs 25,060-crore Export Promotion Mission is a welcome step but faces major hurdles. It flags funding gaps, implementation delays, and institutional challenges, warning that benefits to exporters may be slow to materialize.
The Global Trade Research Initiative (GTRI) has said that while the Union Cabinet’s approval of the Rs25,060-crore Export Promotion Mission (EPM) is a step forward, the initiative still faces significant implementation hurdles and funding constraints. The think tank noted that the Export Promotion Mission aimed at “creating a single framework for boosting India’s export competitiveness” remains only a “broad outline”
EPM’s Two-Pillar Framework
According to GTRI, the EPM will operate through two pillars. The first, NIRYAT PROTSAHAN, is designed to make trade finance cheaper for MSMEs through “interest support, export factoring, collateral guarantees, credit enhancement, and credit cards for e-commerce exporters” Priority will be given to sectors impacted by global tariff hikes, including “textiles, leather, gems and jewellery, engineering goods, and marine products” The second pillar, NIRYAT DISHA, will provide non-financial support such as help with “export quality and compliance, better branding and packaging, participation in international trade fairs, export warehousing, logistics support, and inland transport reimbursements”
GTRI Analysis Highlights Key Weaknesses
The EPM also subsumes older programmes, including the Interest Equalisation Scheme (IES) and the Market Access Initiative (MAI). However, the GTRI analysis flags a series of weaknesses that could delay benefits to exporters. It states that the Mission “needs to be translated into detailed schemes with precise guidelines specifying eligibility, processes, and disbursal rules” and that a new online system will have to be built, a process that “may take months before exporters receive any benefit”.
Funding a Major Concern
Funding has emerged as a major concern. Even though the total outlay is Rs25,060 crore over six years, GTRI points out that “the financial resources do not match the Mission’s ambition,” noting that last year alone, IES cost more than Rs3,500 crore, leaving limited room for all other activities under EPM.
Institutional Challenges and Potential Delays
GTRI analysis also highlights institutional challenges, stating that DGFT, now the implementing agency, will need “new learning to discharge this function,” as earlier financial schemes were managed by banks under RBI oversight. This could “slow approvals and create operational delays.”
Slow Rollout and Payout Delays
GTRI further warns of a slowdown in rollout. With “eight months of FY 2025-26 already passed,” the think tank notes that older schemes like MAI and IES “have made no payouts this year, leaving exporters unsupported during a difficult global environment.”
Success Hinges on Swift Action
However, GTRI added that while the Mission is a “welcome step,” its success will depend on “quickly issuing detailed guidelines, ensuring adequate funding, and building strong coordination mechanisms.” Without rapid operationalisation, “exporters, especially MSMEs, may continue to struggle” in the current global environment. (ANI)
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