MC EXCLUSIVE Govt to add more African, South American buyers on Trade Connect to diversify textiles, leather exports 

In 2024-25, India had exported footwear worth $111 million, textiles worth $475 million, and leather worth $22 million to African countries, data sourced from commerce ministry showed.

The commerce ministry is working on adding more "buyers" on its 'Trade Connect' portal, to speed up diversification of exports of Indian textiles, footwear and leather to key markets, especially Africa and South America, Moneycontrol has learnt.

According to a senior government official, the initiative linked to the Trade Connect portal will be part of the central government’s soon-to-be-notified Rs 25,000 crore-'Export Promotion Mission' (EPM) that aims to offer a set of financial incentives to help exporters diversify to more markets.

The Trade Connect portal is a digital initiative of the Directorate General of Foreign Trade (DGFT), which serves as a single-window, one-stop solution designed to facilitate international business for Indian exporters. The platform connects Indian exporters with foreign buyers, export promotion councils, and other partner government agencies.

"Several buyers from Africa and South America are keen on buying Indian products, mainly footwear, textiles, and other leather products. We’ll add the interested buyers on the Trade Connect portal, and help our exporters in selling the products to them," the official quoted above told Moneycontrol.

"One segment of the Export Promotion Mission will provide incentives for aiding such exporters," the official said, adding that the Cabinet nod for the much-awaited scheme is expected this month.

In 2024-25, India had exported footwear worth $111 million, textiles worth $475 million, and leather worth $22 million to African countries, data sourced from the commerce ministry showed. To South America, India had exported footwear worth $47 million, textiles worth $223 million, and leather worth $58 million, during the same period.

Moneycontrol had reported last month that the Export Promotion Mission would likely run till 2031. The scheme, as per sources, would offer collateral-free loans and assist in "high-risk" markets.

The mission aims to help labour-intensive exporters diversify to Europe, the UK, Peru, Chile, Argentina, and Brazil.

Earlier this month, Finance Minister Nirmala Sitharaman had told Network 18 in an interview that the Centre is looking at a package for exporters to help them tide over the impact of steeper duties imposed by the United States.

Sitharaman had explained that this package will help those industries that are hit by the 50 per cent tariffs imposed by the US from August 27.

The government is also considering enhancing the limit of collateral-free loans for micro & small enterprises (MSEs) to Rs 20 lakh from Rs 10 lakh under the Centre’s Credit Guarantee Scheme (CGS).

The CGS, managed by Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), was introduced in 2010. It seeks to reassure the lender that in the event of an MSE unit, which availed collateral-free credit facilities, fails to pay the money back, the trust would make a payment of 75-90 per cent of the outstanding amount.