The Economic Times reported on November 12 that the Indian Union Cabinet Committee has approved two major export promotion measures. One is a "Export Promotion Scheme" (EPM) for six years with a total scale of 250.6 billion rupees (Rs 25,060 crore). The second is a grant of 200 billion rupees (Rs 20,000 crore) for the "Credit Guarantee for Exporters" (CGSE) scheme. Export trade accounts for nearly 21% of India's GDP in the fiscal year 2024-25 and creates over 45 million jobs, making it an important economic pillar. The EPM integrates existing export support programs, including the Interest Equalization Scheme (IES) and Market Access Initiative (MAI), aiming to enhance export competitiveness. It is intended to prioritize sectors significantly affected by tariff hikes, such as textiles, jewelry, and seafood, with a focus on micro, small, and medium enterprises, first-time exporters, and labor-intensive industries. The EPM consists of two sub-projects: the "Niryat Protsahan" program focuses on reducing the cost of trade financing for micro, small, and medium enterprises, while the "Niryat Disha" program focuses on non-financial support to improve market readiness and competitiveness. The CGSE aims to provide eligible exporters with up to 200 billion rupees in collateral-free credit support, with 100% credit guarantee through the National Credit Guarantee Trust Company (NCGTC), to enhance corporate liquidity, ensure operational stability, and help India move towards its "1 trillion (1 trillion) dollar export target" and "Aatmanirbhar Bharat" (Self-Reliant India).
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