The Union Cabinet, led by Prime Minister Narendra Modi, approved programs totaling ₹45,060 crore to assist exporters, especially micro, small, and medium-sized businesses (MSMEs), who are facing difficulties as a result of the US's 50% tariff on a number of Indian goods.
The package comprises ₹20,000 crore for the Credit Guarantee Scheme for Exporters (CGSE) and the eagerly anticipated Export Promotion Mission (EPM), which will cost ₹25,060 crore.
Over 45 million people are employed directly or indirectly by export-oriented enterprises, and MSMEs account for almost 45% of India's total exports. The statement was made a week after the PM met with the leaders of at least six export promotion groups from industries most impacted by the US's high, double-digit tariffs.
Another round of discussions may not be necessary, according to US President Donald Trump and Indian officials, who said that both parties were fairly near to establishing a fair trade agreement. Exporters will receive additional operating capital from the CGSE, up to 20% of their authorized export limits, without the need for collateral.
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Credit guarantees for loans up to ₹50 crore would be provided by the scheme. The program will be carried out by the Department of Financial Services (DFS) via National Credit Guarantee Trustee Company Limited (NCGTC).
“The scheme is expected to enhance the global competitiveness of Indian exporters and support diversification into new and emerging markets. By enabling collateral-free credit access under CGSE, it will strengthen liquidity, ensure smooth business operations, and reinforce India’s progress towards achieving the $1 trillion export target. This will further reinforce India’s journey towards Aatmanirbhar Bharat,” the government said in a statement.
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