₹45,000 Crore Export Fund Approved: A Lifeline for MSMEs or Too Little, Too Late?

The Union Cabinet has approved a ₹45,060 crore export support package to aid Indian exporters reeling under 50% US tariffs. While officially framed as a "strategic shift" to combat global headwinds, industry analysis reveals a critical shortfall: only ₹2,600-2,700 crore is available as fresh funding for the upcoming fiscal year (FY26). The vast majority of the allocation is either backloaded over six years or earmarked to clear pending dues from discontinued schemes, raising questions about the immediate efficacy of the relief.

The Context (How We Got Here)

This policy response follows a catastrophic few months for Indian exports. Since the US imposed reciprocal tariffs on August 27, 2025, India's exports to its largest market have plunged 37.5%, with labor-intensive sectors like gems & jewellery crashing by 60%. Small textile units in hubs like [Tiruppur] are already facing credit freezes and NPA classifications. The government's solution consolidates fragmented schemes into a unified Export Promotion Mission (EPM) and a Credit Guarantee Scheme (CGSE), but the rollout timeline remains vague, leaving MSMEs in a perilous "wait-and-watch" mode.

The Key Players (Who & So What)

[Ashwini Vaishnaw] (Union Minister): The face of the announcement, framing the mission as a decisive move to "support the complete export ecosystem." His focus is on structural reform and reducing credit costs.
[S.C. Ralhan] (FIEO President): Represents the exporter community's cautious optimism. While welcoming the "forward-looking vision," he has flagged the urgent need for implementation speed, knowing that MSMEs cannot survive on policy announcements alone.
[Ashwin Chandran] (CITI Chairman): The voice of the textile sector, arguably the hardest hit. His demand for immediate rollout highlights the disconnect between bureaucratic timelines and the day-to-day cash flow crisis facing manufacturers.

The BIGSTORY Reframe (The BigStory Angle)

While mainstream media celebrates the headline figure of ₹45,000 crore, the deeper story is the "funding illusion." By repackaging backlog clearances and spreading allocations over a six-year horizon (until 2031), the government risks announcing a rescue package that arrives too late to save the most vulnerable units. The real crisis isn't just the US tariffs; it's the timing mismatch between immediate liquidity needs—to prevent mass NPAs in textiles and gems—and a long-term support mechanism that is currently "approved but not notified."

The Implications (Why This Changes Things)

The discrepancy between the announcement's scale and the immediate liquidity available could accelerate the consolidation of the export sector. Without significant upfront cash infusion or immediate interest subvention, smaller MSMEs may fold or be acquired by larger players with deeper pockets. Furthermore, if the [DGFT]'s promised digital platform faces teething issues, the administrative friction could nullify the policy's intent. Globally, this move signals that India is digging in for a protracted trade standoff, shifting focus to domestic competitiveness rather than betting solely on a quick diplomatic resolution with Washington.

The Closing Question (Now, Think About This)

If a rescue boat is announced but takes six years to fully arrive, does it actually save the drowning swimmers?

FAQs

What is the ₹45,000 crore export fund approved by the Cabinet? It is a ₹45,060 crore package comprising the Export Promotion Mission (₹25,060 crore) and a Credit Guarantee Scheme (₹20,000 crore) designed to support Indian exporters facing high US tariffs and global slowdowns.

When will the Export Promotion Mission be implemented? While approved on November 12, 2025, formal notification is pending. Industry sources expect rollout by year-end, but fresh funding availability for the current fiscal year is limited to roughly ₹2,600 crore.

Which sectors will benefit most from the export fund? The scheme prioritizes labor-intensive sectors hardest hit by the 50% US tariffs, specifically textiles, gems & jewellery, leather, and marine products.

Is the ₹45,000 crore all new money? No. Analysts indicate that a significant portion of the fund is allocated to clearing pending dues from older schemes (like MAI and IES) and is spread over a six-year period until 2031.

Sources

News Coverage

Research & Analysis

Brajesh Mishra Associate Editor

Brajesh Mishra is an Associate Editor at BIGSTORY NETWORK, specializing in daily news from India with a keen focus on AI, technology, and the automobile sector. He brings sharp editorial judgment and a passion for delivering accurate, engaging, and timely stories to a diverse audience.