The Export Promotion Mission (EPM) is a newly introduced umbrella scheme from the FY26 Union Budget aimed at consolidating various export promotion initiatives. This mission focuses on supporting exporters, particularly Micro, Small, and Medium Enterprises (MSMEs), by addressing high finance and logistics costs, creditworthiness challenges, non-tariff barriers, and certification issues.
The total allocation for the EPM in the FY26 Union Budget is ₹2,250 crore, a significant investment to enhance India's export capabilities.
The EPM consolidates several existing schemes, including:
The distribution of the allocated funds is as follows:
The Parliamentary Standing Committee has called for additional funds, citing that the ₹2,250 crore allocation is inadequate given the extensive scope of the EPM. The committee urged for a reassessment and increase in funding during the revised estimates stage.
The current status of the merged schemes is as follows:
The committee recommended that both schemes continue until the EPM is fully operational.
The IES is crucial for exporters as it mitigates the high cost of export credit in India. With interest rates for exporters often ranging from 8% to 12% or more, this scheme helps maintain the competitiveness of Indian exports. The potential removal of IES without a functioning EPM could adversely affect exporters.
Approximately 85% of the beneficiaries of the EPM are MSMEs, highlighting their essential role in India's export sector.
Estimates suggest that every rupee spent through the EPM could result in an increase of ₹2.84 in export revenue, indicating a remarkable 184% rise in potential export earnings.
Q1. What is the main goal of the Export Promotion Mission (EPM)?
Answer: The EPM aims to consolidate various export initiatives to support exporters, especially MSMEs, by addressing high costs and barriers to export, enhancing overall competitiveness.
Q2. How much funding is allocated to the EPM?
Answer: The EPM has been allocated ₹2,250 crore in the FY26 Union Budget, aimed at enhancing India's export capabilities significantly.
Q3. Which schemes are included in the EPM?
Answer: The EPM includes the Interest Equalisation Scheme (IES), the Lab Grown Diamonds (LGD) scheme, and the Market Access Initiative (MAI), consolidating multiple initiatives.
Q4. Why is the IES important for exporters?
Answer: The IES helps offset the high cost of export credit, keeping Indian exports competitive despite high interest rates, which can range between 8% and 12%.
Q5. What is the expected outcome of the EPM on export revenue?
Answer: It is estimated that for every rupee spent on the EPM, export revenue could increase by ₹2.84, leading to a significant rise in export earnings.
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