Government undertakes many initiatives to support MSMEs and boost their competitiveness in global value chain

**Executive Summary** This report details government initiatives announced on March 16, 2026, designed to enhance the global competitiveness of Micro, Small and Medium Enterprises (MSMEs). Key measures include the Export Promotion Mission with a Rs. 25,060 crore outlay for FY 2025–26 to FY 2030–31 and a Rs. 20,000 crore credit guarantee scheme. These programs aim to provide comprehensive financial support, market readiness assistance, and fiscal relief through GST rationalization to strengthen India's position in global value chains. **Key Points / Main Content** **Export Promotion Mission (EPM)** * **Funding and Duration:** Operates with a total outlay of Rs. 25,060 crore from FY 2025–26 to FY 2030–31. * **Strategic Shift:** Consolidates multiple fragmented schemes into a single, outcome-based, and digitally driven framework. * **NIRYAT PROTSAHAN Sub-scheme:** Provides financial instruments including interest subvention, export factoring, collateral guarantees, and credit cards for e-commerce. * **NIRYAT DISHA Sub-scheme:** Enhances market readiness through branding assistance, packaging support, logistics reimbursements, and trade intelligence. **Credit and Capacity Building** * **Credit Guarantee Scheme for Exporters:** Offers 100% credit guarantee coverage through the National Credit Guarantee Trustee Company Limited (NCGTC) for additional collateral-free credit up to Rs. 20,000 crore. * **International Cooperation Scheme:** Funds MSME participation in international exhibitions, fairs, and buyer-seller meets, including reimbursement of export-related costs. **Fiscal Rationalisation** * **GST Adjustments:** Recent rationalization of GST rates on raw materials and services to lower production costs. * **Sectoral Focus:** Strengthens local supply chains in critical sectors such as automobiles, textiles, food processing, logistics, and handicrafts. **Impact Analysis** **MSMEs and Start-ups** **Impact** Enterprises benefit from increased liquidity via collateral-free loans, reduced cost of raw materials due to GST changes, and improved access to international markets through branding and logistics support. **Action Required** MSMEs should apply for trade finance instruments under NIRYAT PROTSAHAN and utilize capacity-building resources under the International Cooperation Scheme to participate in global trade fairs. **Member Lending Institutions (MLIs)** **Impact** MLIs receive 100% credit guarantee coverage from the NCGTC, reducing the risk associated with extending additional credit to the export sector. **Action Required** MLIs must facilitate the extension of collateral-free credit facilities to eligible exporters and MSMEs within the approved Rs. 20,000 crore framework. **Exporters in Key Industrial Sectors** **Impact** Exporters in sectors like textiles, automobiles, and food processing gain a competitive edge through more affordable supply chains and enhanced compliance support. **Action Required** Exporters need to align their products with international quality standards and compliance requirements as facilitated by the NIRYAT DISHA sub-scheme.

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