Prime Minister Narendra Modi.
Credit: PTI Photo
New Delhi: The central government on Wednesday announced new schemes with an outlay of Rs 45,060 crore to support exporters, especially in the sectors like textiles, leather, gems & jewellery, engineering goods, and marine products, which have been badly affected due to imposition of high tariffs in the US.
The initiatives include export promotion mission with an outlay of Rs 25,060 crore and expansion of credit guarantee scheme for exporters with a fund allocation of Rs 20,000 crore.
The proposals have been approved by the union cabinet chaired by Prime Minister Narendra Modi.
Briefing media after the cabinet meeting Union Minister Ashwini Vaishnaw said the export promotion mission would help boost India’s export competitiveness, particularly for MSMEs, first-time exporters, and labour-intensive sectors.
The mission marks a strategic shift from multiple fragmented schemes to a single, outcome-based, and adaptive mechanism that can respond swiftly to global trade challenges and evolving exporter needs, he said.
As per the cabinet note, under the export promotion mission priority support will be extended to sectors impacted by recent global tariff escalations, such as textiles, leather, gems & jewellery, engineering goods, and marine products.
“The interventions will help sustain export orders, protect jobs, and support diversification into new geographies,” it said.
The Modi government’s support to the exporters comes amid imposition of high tariffs by the United States. US President Donald Trump administration has imposed a steep 50% tariffs on most Indian goods effective from August 27. Exporters have been pitching for government support to tide over the crisis.
To help the exporters hit by the tariffs, the Modi government has announced Rs 20,000 crore collateral-free credit support.
The scheme will be implemented by the Department of Financial Services through National Credit Guarantee Trustee Company Limited to provide additional credit support by Member Lending Institutions to the eligible exporters including MSMEs.
A management Committee formed under the chairmanship of Secretary, DFS will oversee the progress and implementation of the scheme.
The Union Finance Ministry noted in a statement that the collateral-free credit access would help in achieving $1 trillion export targets by strengthening liquidity and ensuring smooth business operations.