Important Facts For Prelims
7 New Interventions under Export Promotion Mission
- 21 Feb 2026
- 8 min read
Why in News?
The Ministry of Commerce & Industry launched 7 new interventions under the Export Promotion Mission (EPM) to empower Micro, Small and Medium Enterprises (MSMEs) and enhance India’s global export competitiveness.
- Following this launch, 10 of the 11 proposed EPM interventions are now operational, including the three—Market Access Support, Interest Subvention for Pre- and Post-Shipment Export Credit, and Collateral Support for Export Credit—that were already under implementation.
What are the 7 New Interventions Launched under the Export Promotion Mission?
Interventions Under Niryat Protsahan (Financial Enablers)
- Support for Alternative Trade Instruments (Export Factoring): Promotes export factoring as an affordable working capital solution for MSMEs by providing an interest subvention of 2.75% on the factoring cost for eligible transactions. Assistance is capped at Rs 50 lakh per MSME annually.
- Export factoring is a trade finance mechanism in which an exporter sells its foreign receivables (invoices) to a specialized financial institution called a factor at a discount, in order to receive immediate cash flow instead of waiting for the overseas buyer to make payment.
- Credit Assistance for E-Commerce Exporters: The Direct E-Commerce Credit Facility will provide support up to Rs 50 lakh with 90% guarantee coverage. The Overseas Inventory Credit Facility will extend support up to Rs 5 crore with 75% guarantee coverage.
- Interest subvention of 2.75% will be available, subject to an annual ceiling of Rs 15 lakh per applicant.
- Support for Emerging Export Opportunities: It enables exporters to access new or high-risk markets through various shared-risk and credit instruments. These structured mechanisms aim to strengthen exporter confidence and liquidity flows.
Interventions Under Niryat Disha (Non-Financial Enablers)
- Trade Regulations, Accreditation & Compliance Enablement (TRACE): Supports exporters in meeting international Testing, Inspections, and Certification (TIC) requirements. Provides partial reimbursement of 60% under the Positive List and 75% under the Priority Positive List for eligible expenses subject to an annual ceiling of Rs 25 lakh per Importer-Exporter Code (IEC).
- Facilitating Logistics, Overseas Warehousing & Fulfilment (FLOW): Supports exporters in accessing overseas warehousing and fulfilment infrastructure, including E-Commerce Export Hubs. Provides up to 30% of the approved project cost for a maximum of 3 years.
- Logistics Interventions for Freight & Transport (LIFT): Mitigates geographical disadvantages faced by exporters in low export intensity districts. Provides partial reimbursement of up to 30% of eligible freight expenditure subject to a ceiling of Rs 20 lakh per IEC per financial year.
- Integrated Support for Trade Intelligence & Facilitation (INSIGHT): Strengthens exporter capacity-building and district-level facilitation under the Districts as Export Hubs initiative.
- Financial assistance is upto 50% of project cost, with upto 100% support for proposals from Central and State Government institutions and Indian Missions abroad.
What is the Export Promotion Mission?
- About: EPM is an export-promoting initiative designed to consolidate fragmented export support mechanisms into a single, digitally monitored framework to enhance the global competitiveness of Indian MSMEs and labour-intensive sectors.
- EPM will span 6 years with a total outlay of Rs 25,060 crore covering FY 2025-26 to FY 2030-31.
- Governance Structure: The mission is anchored by the Department of Commerce, with the Directorate General of Foreign Trade (DGFT) serving as the nodal implementing agency.
- It involves coordination between the MSME Ministry, Ministry of Finance, Export Promotion Councils, and state governments.
- Integrated Sub-Schemes: EPM functions through two complementary streams:
- Niryat Protsahan: Focuses on financial enablers, including affordable trade finance, interest subvention, export factoring, and credit enhancement for MSMEs.
- Niryat Disha: Focuses on non-financial enablers, such as support for quality compliance, branding, participation in trade fairs, logistics, and district-level capacity building.
- Sectoral and Regional Focus: Prioritizes tariff-hit sectors like textiles, leather, gems & jewellery, engineering goods, and marine products.
- Under Niryat Disha, it provides targeted support to interior and low-export districts to broaden India's export base and promote inclusive participation.
- Significance: India's expanding network of Free Trade Agreements (FTAs) has made nearly 70% of global GDP and two-thirds of global trade accessible. The mission aims to ensure that MSMEs and startups can actually utilize these preferential access opportunities.
Frequently Asked Questions (FAQs)
1. What is the Export Promotion Mission (EPM)?
The EPM is a centrally sponsored umbrella scheme to consolidate fragmented export support schemes into a single, digitally monitored framework for MSMEs.
2. What are the two main sub-schemes under the EPM?
The EPM operates through Niryat Protsahan (focusing on financial enablers like interest subvention and credit) and Niryat Disha (focusing on non-financial enablers like compliance, logistics, and warehousing).
3. Why is EPM significant in the context of FTAs?
With nearly 70% of global GDP accessible through FTAs, EPM ensures that MSMEs can effectively utilize preferential market access by addressing credit, logistics, and compliance barriers.
UPSC Civil Services Examination, Previous Year Questions (PYQs)
Q. Consider the following statements with reference to India : (2023)
- According to the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, the ‘medium enterprises’ are those with investments in plant and machinery between 15 crore and 25 crore.
- All bank loans to the Micro, Small and Medium Enterprises qualify under the priority sector.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (b)
Q. The SEZ Act, 2005 which came into effect in February 2006 has certain objectives. In this context, consider the following: (2010)
- Development of infrastructure facilities.
- Promotion of investment from foreign sources.
- Promotion of exports of services only.
Which of the above are the objectives of this Act?
(a) 1 and 2 only
(b) 3 only
(c) 2 and 3 only
(d) 1, 2 and 3
Ans: (a)