The Union Cabinet has approved two major schemes worth over ₹45,000 crore to strengthen India’s export sector, especially Micro, Small and Medium Enterprises and labour-intensive industries. This package is expected to simplify exporting, improve access to finance and help domestic products compete more strongly in global markets.

Two new schemes — the Export Promotion Mission (₹25,060 crore) and the Credit Guarantee Scheme for Exporters (₹20,000 crore) — have received Cabinet approval, marking a significant step towards India’s target of achieving 1 trillion United States dollars in exports.

1. Export Promotion Mission (EPM): What It Will Do

The mission aims to build a single umbrella mechanism for all export-related support. Key goals include:

• Improving export competitiveness
  
• Supporting Micro, Small and Medium Enterprises and first-time exporters
  
• Helping labour-intensive sectors (textiles, apparel, gems and jewellery etc.)
  
• Integrating exporters digitally with existing trade systems to reduce paperwork
  

Stakeholders note that EPM addresses longstanding challenges:

• Compliance burden
  
• Branding gaps
  
• Lack of market readiness
  

2. Credit Guarantee Scheme for Exporters (CGSE)

This scheme will provide:

• Collateral-free loans
  
• Additional liquidity through guaranteed credit
  
• Support for exporters who struggle with financing cycles
  

The government states that CGSE will make Indian exports more resilient amid global uncertainties.

Why the Schemes Matter

Industry bodies such as the Confederation of Indian Industry, Apparel Export Promotion Council, and Federation of Indian Export Organisations have welcomed the move.
They highlight the benefits:

• Better access to affordable finance
  
• Stronger export ecosystem
  
• Faster disbursal due to digital processes
  
• Support for Micro, Small and Medium Enterprises (which form over 85% of some sectors like gems and jewellery)
  

Even sectors from regions like the Northeast — for example, artisans depending on forest-based produce along river systems such as the Kalahi river basin — stand to benefit indirectly through easier access to credit and export promotion support.

Statement-Based MCQ

Consider the following statements regarding the new export-related schemes approved by the Union Cabinet:

1. The Export Promotion Mission aims to support Micro, Small and Medium Enterprises and first-time exporters.
   
2. The Credit Guarantee Scheme for Exporters provides collateral-free lending to enhance liquidity.
   
3. Both schemes are part of the Foreign Trade Policy, 2023.
   
4. The Export Promotion Mission is meant only for the textiles sector.
   

Which of the statements are correct?
A. 1 and 2 only
B. 1, 2 and 3 only
C. 2 and 4 only
D. 1, 2 and 4 only

Answer: A