India’s new export promotion program 2025: How your Indian subsidiary will benefit
Take action now and secure the new funding for your presence in India
A few days ago, India passed a comprehensive export promotion package that is of direct relevance to European companies with Indian subsidiaries.
The new Export Promotion Mission (EPM ) bundles numerous previously separate support mechanisms for the first time and provides a total of ₹ 25,060 crore (≈ € 2.46 billion) for the years 2025/26 to 2030/31. At the same time, the Credit Guarantee Scheme for Exporters (CGSE) is being massively expanded with ₹ 20,000 crore (≈ € 1.96 billion) to secure export financing.
What does this mean for you as a European company?
The EPM focuses on two central pillars: “Niryat Protsahan” (financial support such as export loans, guarantees, factoring) and “Niryat Disha” (non-financial support such as certifications, logistics relief, market information and international branding measures). MSMEs (= micro, small and medium enterprises), technology-oriented suppliers and companies from labor-intensive industries benefit in particular – an important point for European companies with local supply chains.
The background to the initiative is the increasing tariff pressure from international markets, particularly the USA, as well as the structural need to make Indian exporters more competitive. The government is therefore focusing heavily on digitalization, simplified programmes and faster access to export financing.
Practical implications for European companies
- Better financing options for local subsidiaries and their suppliers
- Reduced export costs, especially for certification, logistics and market development
- Greater planning security thanks to a six-year funding window
- Strengthening local supply chains, which reduces import dependencies
Does the new export promotion program only apply to MSMEs?
No. The new Indian export promotion program (EPM) is basically open to all exporting companies – including large companies and multinational corporations. However, the EPM prioritizes MSMEs, i.e. many sub-promotions are tailored to them, including
- Simplified application channels
- Preferential access to loan guarantees
- Special support for first-time exporters
- Grants for certification, logistics & compliance
Larger companies benefit indirectly and directly.
Directly, e.g. via:
- Export certification promotion
- Reimbursement of logistics/transport costs
- International branding/trade fair participation
Indirectly, because:
- whose Indian MSME suppliers form a stronger, cheaper and more stable supply chain
- Financing stress in the supply chain decreases
- Improve supplier quality and compliance
What you should do now
✔ Check MSME status: Many subsidiaries meet the criteria – and thus secure access to substantial funding.
✔ Identify support programs: Clarify which certificates, logistics costs or export markets are specifically supported.
✔ Involve banks at an early stage: Prepare applications for export credit lines and guarantees as early as Q1/2026.
✔ Inform suppliers: Local suppliers can benefit from significant cost advantages – this improves your entire supply chain.
✔ Adapt your export strategy: Use the funding window to target new markets or expand your global sourcing from India.
Do you need support with your sourcing strategy for India? Do you have questions about your Indian business? Would you like to have urgent issues in your Indian subsidiary resolved before the end of the year? Then get in touch with us now. We will navigate you successfully into the new year.
