Export Promotion Mission Set to Reach Union Cabinet for Approval

New Delhi, September 16 – Following thorough discussions with multiple ministries, stakeholders, and industrial representatives, senior government officials announced that the CG is preparing to present the proposed Export Promotion Mission to the Union Cabinet for discussion and approval. The scheme, launched in the Union Budget 2023-24, aims to provide a flexible support mechanism for exporters facing pressure from global trade.

₹25,000 Crore Support Plan

The initiative is expected to channel around ₹25,000 crore over six financial years, from 2025-2031. Unlike the previous schemes, the program will allow funds to be allocated in a fungible way, allowing resources to shift between sectors as needs change. This flexibility is seen as key to addressing an uncertain, volatile global trade environment.

Response to Global Trade Challenges

The need to launch this scheme increased after the United States levied a 50% tariff on Indian imports effective August 27, creating new hurdles for Indian exporters. The objective is to provide businesses with a buffer against costs to support domestic firms in remaining competitive in the face of global trade challenges.

Strengthening Export Competitiveness

Officials characterized this initiative as one of the most significant policy actions in recent years. The mission aims to increase India’s export resilience with targeted support, enabling businesses to build market share across the globe even with protectionist trends.

Outlook

The Export Promotion Mission indicates that the government supports exporting as a fundamental growth driver. Sectors like textiles, engineering, and chemicals may adapt better as well, providing medium/long-term opportunities, but global demand recovery has to be sustained for all markets to recover. The mission emphasizes stability of policy and resilience of the export sector to reassure investors of government support. Export-oriented sectors could see wider margins in returns.

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