India’s proposed Export Promotion Mission (2025)

Why in News? 

 The Government of India is set to launch a ₹20,000 crore Export Promotion Mission aimed at cushioning Indian exporters from the adverse impact of recent U.S. tariff hikes and boosting competitivenes in global markets.

In August 2025, the United States under President Donald Trump announced additional tariffs (up to 50%) on several categories of Indian exports, including textiles, gems & jewellery, seafood, and chemicals.

• These measures could affect up to $64 billion worth of Indian exports, particularly hurting MSME-driven sectors.
• India’s export competitiveness is already challenged by global trade slowdown, supply chain disruptions, and rising non-tariff barriers.
• Historically, India has used export incentives (MEIS, RoDTEP, PLI) to promote trade, but WTO rules have limited direct subsidies, necessitating new approaches.

The News

• Scheme: ₹20,000 crore multi-ministerial Export Promotion Mission.
• Timeline: Expected rollout by September 2025.
• Implementing Agencies: Ministry of Commerce & Industry, Ministry of MSME, and Department of Revenue.
• Components:
• Easing access to export credit for MSMEs.
• Tackling non-tariff barriers in overseas markets.
• Infrastructure for e-commerce exports (warehousing, logistics, digital platforms).
• Aggressive Brand India promotion in global markets.
• Strengthened trade facilitation measures to reduce turnaround time.
• Target Sectors: Textiles, gems & jewellery, seafood, chemicals, engineering goods, and other MSME-heavy sectors.

• Strategic Significance:
• Shows India’s shift from reactive tariff negotiations to proactive market diversification and brand building.
• Supports Atmanirbhar Bharat goals by enabling domestic industries to compete globally.
• Economic Impact:
• Can partially offset tariff shocks by lowering transaction costs and improving market access.
• Boosts liquidity for exporters via credit facilitation, reducing the working capital stress that tariffs may cause.
• Geopolitical Angle:
• Signals India’s intent to withstand U.S. economic pressure without escalating into a tariff war.
• Diversifying export markets can reduce dependence on any single trade partner, making India’s trade more resilient.
• Challenges:
• WTO compliance – subsidies or incentives must be structured to avoid trade disputes.
• Execution bottlenecks – ensuring credit reaches small exporters quickly.
• Branding effectiveness – “Brand India” campaigns have had mixed results in the past without strong market research and follow-through.
• Way Forward:
• Parallel diplomatic engagement with the U.S. to seek tariff relief or mutually beneficial arrangements.
• Strengthen FTAs with EU, ASEAN, and African nations to replace lost U.S. market share.
• Invest in product quality upgradation and compliance with global sustainability norms to target premium markets.

Q. Consider the following statements regarding India’s proposed Export Promotion Mission (2025):

 1. It aims to mitigate the impact of recent U.S. tariff hikes on Indian exports. 

 2. It will be implemented solely by the Ministry of Commerce & Industry. 3. The mission includes promotion of “Brand India” in global markets. Which of the statements given above is/are correct?

 (a) 1 and 2 only
(b) 1 and 3 only
(c) 2 and 3 only
(d) 1, 2 and 3 

Answer: (b) 1 and 3 only Explanation:

• Statement 1 – Correct: One of the core objectives is to cushion exporters from the adverse impact of U.S. tariff hikes.
• Statement 2 – Incorrect: It will be a multi-ministerial effort involving the Ministry of Commerce & Industry, MSME, and Department of Revenue, not just the Commerce Ministry.
• Statement 3 – Correct: “Brand India” promotion is part of the mission to enhance market visibility and competitiveness.