Export Promotion Mission to Counter U.S. Tariff Impact

Context:

The Government of India is modifying its Export Promotion Mission to provide targeted support to MSMEs in sectors adversely affected by increased U.S. tariffs, including apparel, textiles, shrimp, organic chemicals, and machinery.

Export Promotion Mission (EPM)

Announced in Union Budget 2025–26 with an allocation of ?2,250 crore for FY 2025–26.
Objectives:
- Facilitate easy access to export credit.
- Provide cross-border factoring support.
- Support MSMEs in tackling non-tariff measures in overseas markets.
Current modification aims for sector-specific intervention to counter U.S. tariff hikes.

Targeted Sectors:

Apparel and Textiles.
Shrimp exports.
Organic chemicals.
Machinery and mechanical appliances.

Planned Measures under Tweaked Mission

Credit Guarantees for MSME exporters, with coverage up to ?100 crore loans.
Expedited clearances to reduce export delays.
Potential export incentives under consideration.
Coordination between Ministries of Commerce, Finance, MSME, Textiles, and Fisheries.

Significance for MSMEs

MSMEs are highly vulnerable to tariff shocks due to limited financial reserves.
Sector-specific relief could enhance global competitiveness and market diversification

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