Government Launches Key Initiatives to Strengthen MSMEs and Enhance Global Competitiveness

The Government of India has introduced several initiatives to strengthen Micro, Small and Medium Enterprises (MSMEs) and enhance their competitiveness in the global value chain. These measures focus on improving access to finance, expanding export opportunities, and building the capacity of MSMEs to compete internationally.

One of the major initiatives is the Export Promotion Mission (EPM), which aims to provide a comprehensive, flexible, and digitally driven framework for export promotion. The mission has a total outlay of ₹25,060 crore for the period from FY 2025–26 to FY 2030–31. It represents a strategic shift from multiple fragmented schemes to a single, outcome-based mechanism designed to respond effectively to global trade challenges.

The mission operates through two integrated sub-schemes. Niryat Protsahan focuses on improving access to affordable trade finance for MSMEs through measures such as interest subvention, export factoring, collateral guarantees, and credit cards for e-commerce exporters. Meanwhile, Niryat Disha aims to strengthen market readiness by supporting export quality compliance, international branding, packaging, trade fair participation, export warehousing, logistics, and trade intelligence.

Additionally, the government has approved a Credit Guarantee Scheme for Exporters, which will provide 100 percent credit guarantee coverage through the National Credit Guarantee Trustee Company Limited (NCGTC). The scheme will enable collateral-free credit facilities of up to ₹20,000 crore for eligible exporters, including MSMEs, improving liquidity and supporting expansion into new markets.

The International Cooperation Scheme also supports MSMEs by facilitating participation in international exhibitions, fairs, conferences, and buyer-seller meets abroad while reimbursing certain export-related costs.

Furthermore, recent GST rationalisation is expected to strengthen MSMEs by making raw materials and services more affordable. This move is likely to boost sectors such as automobiles, textiles, food processing, logistics, and handicrafts by encouraging small businesses to scale up operations and invest in innovation.

This information was provided by Minister of State for MSMEs Shobha Karandlaje in a written reply in the Rajya Sabha.

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