India Plans Rs 25,000 Crore Export Boost to Counter US Tariffs

The Indian government is finalizing a Rs 25,000 crore support package for exporters under the Export Promotion Mission (EPM) for 2025–2031, aimed at countering global trade challenges, particularly the US’s 50% tariff on Indian goods effective August 27. The proposal, submitted by the Commerce Ministry to the Finance Ministry’s Expenditure Finance Committee (EFC), awaits Union Cabinet approval to bolster export competitiveness, especially for Micro, Small, and Medium Enterprises (MSMEs).

Announced in the 2025-26 Union Budget, the EPM seeks sustainable export growth through two sub-schemes: Niryat Protsahan (Rs 10,000 crore) and Niryat Disha (Rs 14,500 crore). Niryat Protsahan focuses on financial support, including Rs 5,000 crore for interest equalization over six years, alternative trade finance instruments, and an e-commerce exporter credit card to address liquidity gaps. Niryat Disha emphasizes export quality compliance (Rs 4,000 crore), overseas market development (Rs 4,000 crore), branding, logistics, and capacity building to integrate Indian firms into global value chains.

The initiative, driven by the Commerce, MSME, and Finance Ministries alongside Exim Bank, ECGC, CGTMSE, NCGTC, and industry stakeholders, aims to shield exporters from global uncertainties, including the US tariff hike from 25% to 50%, which threatens sectors like textiles, chemicals, leather, and footwear. The EPM replaces discontinued schemes like the Market Access Initiative and Interest Equalization Scheme, aligning with WTO-compliant measures to promote ‘Brand India.’

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India’s exports showed resilience, rebounding 7.29% to $37.24 billion in July 2025, though the trade deficit widened to $27.35 billion, an eight-month high. From April to July 2025-26, exports grew 3.07% to $149.2 billion, while imports rose 5.36% to $244.01 billion. The EPM’s focus on credit access, non-tariff barrier mitigation, and e-commerce hubs aims to sustain this momentum, targeting $2 trillion in exports by 2030.

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