Parliament Question: Impact of global slowdown on export growth

GOVERNMENT OF INDIA MINISTRY OF COMMERCE AND INDUSTRY DEPARTMENT OF COMMERCE RAJYA SABHA UNSTARRED QUESTION No. 1639 ANSWERED ON 13/02/2026 IMPACT OF GLOBAL SLOWDOWN ON EXPORT GROWTH 1639. SMT. GEETA ALIAS CHANDRAPRABHA: Will the Minister of COMMERCE AND INDUSTRY be pleased to state: (a) whether Government has taken note of the recent decline in merchandise export growth during 2025; (b) the sectors that have been most affected by the global slowdown in demand; (c) whether any expansion of support measures under the Foreign Trade Policy, 2023, is under consideration, particularly to assist exporters in Uttar Pradesh; (d) whether special credit lines for Micro, Small, and Medium Enterprises (MSME) exporters, including those operating from emerging export clusters in Uttar Pradesh, are being explored; and (e) the steps being taken to stabilize and strengthen India’s export performance in 2026? ANSWER THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI JITIN PRASADA) (a) to (e) The Government closely monitors export performance and the impact of global economic developments on India's international trade. The Government has adopted a multi-pronged strategy to ensure continuous export competitiveness and growth of India’s export sector. The Foreign Trade Policy (FTP) 2023 is applicable uniformly across the country, including for exporters in the State of Uttar Pradesh. The policy is dynamic and responsive to emerging trade scenarios. Exporters from the State can avail benefits under various schemes as mentioned below: i. Export Promotion Mission (EPM): The Government has approved the EPM with a budgetary outlay of ₹25,060 crores (FY 2025–26 to FY 2030–31). It operates through Niryat Protsahan (focusing on trade finance and credit enhancement) and Niryat Disha (focusing on export logistics, warehousing, and market access), specifically targeting MSME competitiveness. ii. Credit Support: To ensure adequate and affordable credit, the Export Credit Guarantee Corporation (ECGC) has increased its insurance cover for banks to 90% (up from 70%) under the Whole Turnover-Export Credit Insurance for Banks (WT-ECIB) for loans up to ₹80 crore. A Collateral-Free Cover has also been introduced for Micro and Small Enterprises (MSEs) for working capital limits up to ₹10 crore. Additionally, to serve exporters in Uttar Pradesh effectively, ECGC 1operates five branches in major export centres, namely Varanasi, Kanpur, Agra, Noida, and Moradabad, serving as local contact points for exporters and bankers to facilitate easier access to credit. iii. Districts as Export Hubs (DEH): This initiative identifies products with export potential in every district (including those in Uttar Pradesh) to address bottlenecks and link local MSMEs with global value chains. iv. Trade Connect e-Platform: The Government has launched the Trade Connect e-Platform to provide trade-related information to Indian exporters. It serves as a single-window portal connecting Indian Missions Abroad, Export Promotion Councils, and the Department of Commerce to facilitate market access for new and existing exporters. v. In addition, several other MSME - focused schemes contribute to strengthening the competitiveness of enterprises engaged in exports. These include the Prime Minister’s Employment Generation Programme (PMEGP), Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), Micro and Small Enterprises –Cluster Development Programme (MSE-CDP), Scheme of Fund for Regeneration of Traditional Industries (SFURTI), Zero Defect Zero Effect (ZED) Certification Scheme, LEAN Manufacturing Competitiveness Scheme, Intellectual Property Rights (IPR) Scheme, and the Procurement and Marketing Support (PMS) Scheme, which collectively enhance productivity, quality, market access, and institutional capacity of MSMEs. vi. To strengthen exporters, particularly Micro, Small and Medium Enterprises (MSMEs), and improve their integration into global value chains, the Government has implemented a range of measures aimed at improving access to export credit, risk mitigation and trade finance support. These include: • Provision of 90% insurance cover under the Short-Term Whole Turnover – Export Credit Insurance for Banks (WT-ECIB) scheme for exporters or exporter groups with aggregate export working capital limits up to ₹80 crore, to facilitate availability of affordable export credit. Enhanced insurance cover of up to 100% for exporters obtaining policies directly without intermediaries, which may be considered by banks as risk mitigation, thereby easing collateral requirements for MSME exporters. • Simplification of procedures for settlement of Short-Term ECIB claims with net principal outstanding up to ₹10 crore, enabling faster processing and reduced documentation. • Introduction of a non-recourse Export Factoring Facility designed for manufacturing MSMEs, providing working capital support, credit risk protection and receivables management. • Provision of Exports Receivables Insurance Cover (ERIC) in Indian Rupees and foreign currency to support Non-Banking Financial Companies (NBFCs) in expanding factoring services for exporters. To stabilise and strengthen India's export performance in 2026, the Government has undertaken comprehensive measures as highlighted above with a major focus on market diversification and enhancing competitiveness. A key pillar of this strategy is leveraging Free Trade Agreements (FTAs) and Preferential Trade Agreements (PTAs). The Government is actively working with all stakeholders to enable exporters to better utilize the benefits of existing agreements and effectively seize opportunities created by recent trade deals, such as with Mauritius, United Arab Emirates, Australia, EFTA, Oman, United Kingdom, New Zealand and the European Union. ***** 2