The Export Promotion Mission, first announced in the Budget for 2025-26 with an outlay of Rs 2,250 crore, is now likely to cover five more years until 2031 in line with the timeline of the 16th Finance Commission with a significantly higher allocation, a government official said.
“Although it was outlined in the Budget for the current fiscal, we are now planning to extend it in alignment with the upcoming five-year cycle tied to the Finance Commission’s timeline. The funding commitment will also be substantially higher than the Budgeted allocation,” this official said.
The 16th Finance Commission headed by Arvind Panagariya, former vice-chairman of the Centre's topmost think-tank NITI Aayog, will make its report available by October 31, 2025, covering a period of five years starting April 1, 2026 and until March 31, 2031.
The official added that inter-ministerial consultations on the scheme have been concluded, and the proposal will be sent to the Cabinet for an approval soon.
The scheme is being designed to be more flexible and responsive to the needs of exporters with a fungible structure that allows for quicker adaptation.
Moneycontrol reported last month that the central government has lined up a support package worth Rs 25,000 crore under the Export Promotion Mission, aimed at providing affordable credit and better market access for Indian goods, in a bid to cushion exporters from the adverse impact of high tariffs.
Earlier this month, Finance Minister Nirmala Sitharaman told Network 18 in an interview that the central government 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 percent tariffs imposed by the US from August 27.
Around $48.2 billion worth of India’s merchandise exports to the US are estimated to face tariffs of 50 percent, out of which an additional 25 percent duty kicked in from August 27, commerce ministry said in a written response to the Lok Sabha on August 19.
Key exports such as electronics, pharmaceuticals and petroleum products are currently exempt from steeper duties.
India exported goods worth $86.51 billion to the US in FY25.
Any fresh incentive from the government will potentially focus on labour-intensive exports such as textiles and leather products that have been hit the hardest by the steeper tariffs imposed by the US.
In a series of meeting with Commerce Minister Piyush Goyal in August, exporters urged the government to incentivise shipments by fast-tracking and restoring various subsidies, including expediting disbursal of funds allocated under the Export Promotion Mission.
To be sure, India and the US continue to engage over agreeing to a Bilateral Trade Agreement (BTA), aiming to conclude talks by Fall of this year.
While, talks hit a rough patch recently, the chief negotiators from both nations will meet on September 16 to discuss “trade issues”.
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