Recently, the Union Cabinet approved two major initiatives, the Credit Guarantee Scheme for Exporters (CGSE) and the Export Promotion Mission (EPM), to boost India’s export competitiveness, liquidity, and global trade resilience.

About Credit Guarantee Scheme for Exporters (CGSE)

• The CGSE  provides 100% credit guarantee coverage through the National Credit Guarantee Trustee Company Limited (NCGTC).
  • It offers collateral-free credit support to exporters, including MSMEs and non-MSMEs, to strengthen access to working capital and ensure business continuity.
• Budget:  ₹20,000 crore
• Implemented by: The Department of Financial Services (DFS) under the Ministry of Finance through lending institutions.
• Significance: The initiative directly supports India’s goal of achieving USD 1 trillion in exports, ensuring liquidity in export-oriented sectors and promoting Aatmanirbhar Bharat.

About Export Promotion Mission (EPM)

• The EPM, with a budget of ₹25,060 crore for 2025–26 to 2030–31, aims to consolidate multiple export schemes into a single, technology-driven framework.
  • The Mission integrates schemes such as the Interest Equalisation Scheme (IES) and Market Access Initiative (MAI) under a coordinated export development strategy.
• Implemented by: Directorate General of Foreign Trade (DGFT) under Ministry of commerce and industry.
• Mission comprises two key sub-schemes:
  • Niryat Protsahan: Focused on affordable trade finance, interest subvention, export factoring, and collateral guarantees for MSMEs.
  • Niryat Disha: Provides non-financial support for export quality, branding, packaging, trade fairs, logistics, and compliance readiness.

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Expected Outcomes of the Initiatives

• Enhanced Export Liquidity: Easier access to working capital will boost exporters’ cash flow and operational capacity.
• Improved Competitiveness: Consolidated financial and logistical support will help MSMEs and first-time exporters compete globally.
• Sectoral Focus: Labour-intensive industries like textiles, leather, gems, jewellery, and marine products will benefit from financial and non-financial interventions.
• Job Creation: Export growth is expected to sustain and expand employment across manufacturing and service sectors.
• Market Diversification: Support for branding, certification, and logistics will enable penetration into new and non-traditional markets.
• Macroeconomic Stability: Rising exports will help strengthen foreign exchange reserves and support long-term economic resilience.

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