Enhancing Indian Exports: The Export Promotion Mission (EPM) Initiative

Export Promotion Mission (EPM) - Primer

The Export Promotion Mission (EPM) is a major central initiative approved with an outlay of ₹25,000 crore over six years (approximately ₹4,200 crore annually). The mission is designed to support Indian exporters dealing with global challenges such as high US tariffs, weakened external demand, and delays in reimbursements under older export schemes. EPM seeks to streamline and modernise export assistance through digital processing, faster disbursement, and sector-specific support.

What the Mission Intends to Do

• Provide stable, multi-year funding for export-linked schemes.
• Digitise reimbursement processes to ensure faster release of dues.
• Support sectors affected by high US tariffs—textiles, gems & jewellery, leather, marine products, and engineering goods.
• Bring market-access and interest-equalisation benefits under a unified and transparent framework.
• Replace older schemes that face expiry or pending backlogs.

FAQs

1. What is the objective of the EPM?

Ans: To provide long-term, predictable financial support that enhances competitiveness, eases cash-flow pressures, and improves global market access for Indian exporters.

2. Why is early implementation important?

Ans: Exporters have faced significant delays under earlier schemes. Timely implementation ensures smoother disbursal, prevents liquidity stress, and supports exporters during a global slowdown.

3. Why do experts say the annual outlay may be tight?

Ans: The interest-equalisation scheme alone incurred an expenditure of over ₹3,500 crore last year. With multiple schemes being merged under EPM, the yearly allocation of ₹4,200 crore may be insufficient to meet total demand.

4. What sectors may benefit the most?

Ans: Sectors facing up to 50% US tariffs—including textiles, gems and jewellery, leather, marine products, and engineering goods—are expected to receive enhanced support.

5. What operational improvements are expected?

Ans: Full digital automation, transparent procedures, and early notification of scheme guidelines to prevent delays and accumulation of pending dues.

6. Why are exporters seeking clarity?

Ans: Exporters require details on reimbursement rates, eligibility conditions, and the nature of support to plan pricing, production, and investments for the upcoming financial year.