India announces ₹25,060 Cr Export Promotion Project to Offset Impact of U.S. Tariff Hike
The Export Promotion Project consolidates multiple fragmented export schemes into a digitally driven mission aimed towards an overall improvement in trade.
Minister of State in The Ministry Of Commerce and Industry, Jitin Prasada recently announced in the Lok Sabha that the Government of India has launched a ₹25,060 crore Export Promotion Mission (EPM) to strengthen India’s export competitiveness and, importantly, cushion the revenue impact of the recent U.S. tariff escalation debacle which saw Washington levy a 25% duty on the import of Indian goods, including textiles, gems and jewellery, leather and engineering products.
The Minister of State was replying to a question raised by former Pondicherry Chief Minister Ve Vaithilingam of the Indian National Congress.
Background
On July 31, 2025, the U.S. issued an Executive Order on Reciprocal Tariff (RT) rates, introducing country-specific ad valorem duties ranging between 15% and 41%, with India facing an additional 25% tariff.
These measures were later furthered on August 6, 2025, citing India’s continued purchase of Russian crude oil. The new tariffs - made effective from August 27, 2025 affect several key production sectors in India.
The Export Promotion Mission (EPM) has been introduced as a measure to offset the impact of these duties and protect India’s export momentum. With an outlay of ₹25,060 crore earmarked for the Financial Years from 2025-26 to 2030-31, the EPM consolidates multiple fragmented export schemes into a digitally driven, outcome-based mission aimed at improving access to trade finance, reduction of compliance costs and overall enhancement of export branding and logistics infrastructure.
The minister has announced two sub-schemes through which the EPM shall be deployed:
I. NIRYAT PROTSAHAN - focuses on improving access to affordable trade finance for Micro, Small & Medium Enterprises (MSMEs), including interest subvention, export factoring, collateral guarantees, e-commerce export credit cards and credit enhancement support.
II. NIRYAT DISHA - focuses on non-financial enablers that enhance market readiness and competitiveness, including export quality and compliance support, assistance for international branding, packaging, and participation in trade fairs, export warehousing and logistics, inland transport reimbursements, and trade intelligence and capacity-building initiatives.
The EPM has been announced to prioritize support for sectors most affected by global tariff hikes and seeks to protect jobs, sustain export orders, and enable diversification into new markets.
In addition, the Government approved a Credit Guarantee Scheme for Exporters, providing 100% credit guarantee coverage through the National Credit Guarantee Trustee Company (NCGTC) to Member Lending Institutions for collateral-free loans of up to ₹20,000 crore to exporters, including MSMEs. The scheme is aimed to improve liquidity and enable exporters to manage higher working capital needs in the current tariff environment.
Further, the Reserve Bank of India (RBI) has announced trade relief measures such as moratoriums on debt repayment and extensions in export credit tenors for affected exporters.
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Prasada further stated that India continues to leverage Free Trade Agreements (FTAs) to diversify export markets and reduce reliance on single trading partners. The Ministry noted that India has already signed 15 FTAs and 6 Preferential Trade Agreements (PTAs) and is in active negotiations for new FTAs with the European Union, Peru, Chile, New Zealand, and Oman.
From April-October 2025, India’s total exports including merchandise and services stood at USD 491.8 billion, up from USD 469.11 billion accumulated during the same period in 2024, a marker of continued upward trends despite global trade disruptions.
The Ministry reaffirmed that it remains engaged with all stakeholders including Export Promotion Councils (EPCs), industry associations, and state governments to ensure that exporters, particularly MSMEs, receive timely support and India maintains its trajectory toward achieving the USD 1 trillion export target.
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