Cabinet decisions on exports to improve competitiveness: PM Modi

Cabinet decisions on exports to improve competitiveness: PM Modi

## Government Bolsters Export Sector with New Promotion Mission and Credit Guarantees

**New Delhi –** In a move aimed at significantly enhancing India’s global competitiveness, the Union Cabinet, under the chairmanship of Prime Minister Narendra Modi, has approved a comprehensive export promotion mission and a robust credit guarantee scheme for exporters. The decisions, finalized during a meeting held on November 12, 2025, signal a renewed government focus on bolstering the nation’s export sector and mitigating financial risks faced by businesses engaged in international trade.

The export promotion mission, details of which are expected to be released in the coming weeks, is designed to provide targeted support to key export-oriented industries. Government sources indicate that the mission will encompass a multi-pronged approach, including streamlined regulatory processes, enhanced market access initiatives, and skill development programs tailored to the needs of exporters. The initiative aims to address existing bottlenecks that hinder export growth and facilitate greater participation of Indian businesses in global value chains.

“The government recognizes the critical role of exports in driving economic growth and creating employment opportunities,” stated a senior official following the Cabinet meeting. “This new mission is a testament to our commitment to empowering Indian exporters and enabling them to compete effectively in the international arena.”

The credit guarantee scheme, the second major decision announced, addresses a significant challenge faced by many exporters, particularly small and medium-sized enterprises (SMEs): access to affordable financing. Under the scheme, the government will provide guarantees to banks and financial institutions against potential losses on loans extended to exporters. This is expected to encourage lenders to provide credit to exporters on more favorable terms, thereby reducing their financial burden and enabling them to expand their operations.

Experts believe the credit guarantee scheme will be particularly beneficial for SMEs, which often struggle to meet the stringent collateral requirements imposed by banks. By mitigating the risk for lenders, the scheme is expected to unlock significant amounts of credit for these businesses, allowing them to invest in new technologies, expand their production capacity, and explore new markets.

The combined impact of the export promotion mission and the credit guarantee scheme is projected to be substantial. Government analysts predict that these initiatives will lead to a significant increase in India’s export volume over the next five years, contributing to a more robust trade balance and strengthening the country’s overall economic performance. Furthermore, the initiatives are expected to create new employment opportunities in the export sector and related industries, boosting economic activity across the country.

The announcement has been met with positive reactions from industry leaders, who have long advocated for greater government support for the export sector. “These are welcome steps that will provide a much-needed boost to Indian exporters,” said the President of the Federation of Indian Export Organisations (FIEO). “We are confident that these initiatives will help us to achieve our ambitious export targets and further integrate India into the global economy.”

While the full details of the initiatives are yet to be revealed, the government’s commitment to supporting the export sector is clear. By addressing key challenges such as access to finance and regulatory hurdles, the new export promotion mission and credit guarantee scheme are poised to unlock the immense potential of Indian exporters and propel the nation towards greater economic prosperity. The success of these initiatives will ultimately depend on effective implementation and close collaboration between the government, industry, and financial institutions, ensuring that Indian businesses are well-equipped to thrive in the increasingly competitive global marketplace.

This article was created based on information from various sources and rewritten for clarity and originality.