Parliament Question: Measures to protect Indian exporters from global trade disruptions

GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT OF COMMERCE RAJYA SABHA STARRED QUESTION No. 238 ANSWERED ON 13.03.2026 MEASURES TO PROTECT INDIAN EXPORTERS FROM GLOBAL TRADE DISRUPTIONS *238. Dr. SIKANDER KUMAR: Will the Minister of COMMERCE AND INDUSTRY be pleased to state: (a) the detailed status of the Export Credit Insurance and interest subvention schemes proposed in Budget 2026-27 to insulate Micro, Small, and Medium Enterprises (MSMEs) exporters from international geopolitical shocks; (b) whether Government has identified specific bottlenecks in the disbursement under Performance Linked Incentive (PLI) schemes across the 14 sectors and the steps taken to accelerate fund utilisation; and (c) the steps taken to mitigate the impact of global trade disruptions and tariff pressures on Indian merchandise exports, which are targeted to reach $1.2 trillion under the National Manufacturing Mission? ANSWER THE MINISTER OF COMMERCE & INDUSTRY (SHRI PIYUSH GOYAL) (a) to (c): A statement is laid on the Table of the House 1STATEMENT REFERRED TO IN REPLY OF PART (a) TO (c) OF RAJYA SABHA STARRED QUESTION NO.238 FOR ANSWER ON 13TH MARCH 2026 REGARDING “MEASURES TO PROTECT INDIAN EXPORTERS FROM GLOBAL TRADE DISRUPTIONS” (a). The Union Cabinet has approved the Export Promotion Mission, on 12 November 2025, with an outlay of Rs. 25,060 crore for the period FY 2025–26 to FY 2030–31. The Mission aims to strengthen India’s export competitiveness with particular focus on MSMEs, first-time exporters and labour-intensive sectors. A total of ₹2,300 crore has been allocated for 2026-27 to focus on trade finance and non-financial support, combining market access initiatives with risk management. The Mission will operate through two integrated sub-schemes: i. Niryat Protsahan, which focuses on improving access to affordable trade finance for MSMEs through a range of instruments such as interest subvention, export factoring, collateral guarantees, credit cards for e- commerce exporters, and credit enhancement support for diversification into new markets. ii. Niryat Disha, which focuses on non-financial enablers that enhance market readiness and competitiveness, including export quality and compliance support, assistance for international branding, packaging, and participation in trade fairs, export warehousing and logistics, inland transport reimbursements, and trade intelligence and capacity- building initiatives. The following interventions under the Niryat Protsahan sub-scheme have been launched to improve access to trade finance for MSME exporters: (i) Interest Subvention for Pre- and Post-Shipment Export Credit: The intervention provides interest subvention of 2.75% per annum on eligible rupee-denominated export credit extended by lending institutions for pre-shipment and post-shipment purposes. The benefit is available to MSME manufacturer and merchant exporters possessing valid IEC and Udyam registration for exports under a notified positive list of tariff lines, subject to a maximum benefit of Rs. 50 lakh per exporter per financial year. (ii) Collateral Support for Export Credit: The intervention facilitates access to working-capital export credit for MSME exporters through credit guarantee support. The guarantee cover is provided through the Credit Guarantee Fund Trust for Micro and Small Enterprises, with coverage of up to 85% for Micro and Small enterprises and 65% for Medium enterprises, subject to a maximum guarantee ceiling of Rs. 10 crore per exporter. (b). The Government has instituted Production Linked Incentive Scheme covering 14 sectors with a total outlay of Rs. 1.97 lakh crore to enhance domestic manufacturing, attract investment and boost exports. In order to address and facilitate the disbursement of incentive claims, these Schemes are regularly reviewed by the concerned Ministries/Departments as well as Empowered Group of Secretaries (EGoS). The Ministries/Departments have undertaken a number of steps which include the provision for quarterly disbursement of claims. Further, effective co-ordination between the State Governments and Ministries to fast-track regulatory approvals has reduced the project commissioning time. The standard operating procedures developed by the respective Ministries/Departments have reduced the compliances for claiming incentives. Complete online 2claim process along with the grievance redressal mechanism in the portal has also helped in timely disbursement of the claims. Incentives amounting to Rs.28,748 crore have been disbursed under PLI across 14 sectors as on 31st December 2025. The schemes have also resulted in approved investments exceeding Rs.2.16 lakh crore, cumulative sales of over Rs.20.41 lakh crore and employment generation for more than 14 lakh. (c). In addition to the interventions being implemented under the Export Promotion Mission, 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 and integrated strategy to bolster India's exports across all sectors, with a special focus on addressing global market challenges and supporting exporters, including MSMEs and small exporters. This strategy combines enhanced infrastructure support, economic partnerships and trade agreements for better market access, digital transformation for ease of doing business, trade finance support to enhance credit availability, and targeted Market Access Initiatives for access to new products and markets, capacity building and outreach support to create a resilient and competitive export ecosystem. India has also negotiated and operationalised several comprehensive and balanced Free Trade Agreements (FTAs) and Preferential Trade Agreements (PTAs) with key global partners to expand market access, strengthen supply chains and enhance export competitiveness. The Government continues to work closely with stakeholders to enable effective utilisation of preferences available under these agreements, while also pursuing diversification of India’s export basket and facilitating entry into new and emerging markets as part of a broader strategy. ***** 3