The Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry, Government of India has announced the launch of “Support for Emerging Export Opportunities” under the Export Promotion Mission (EPM) – NIRYAT PROTSAHAN.

This initiative has been implemented prospectively with immediate effect and aims to strengthen India’s export ecosystem by improving access to trade finance in under-served international markets.

The intervention is particularly significant for MSMEs and exporters involved in global value chains, as it seeks to enhance confidence in cross-border trade settlements and facilitate stronger banking partnerships between Indian and foreign financial institutions.

Policy Background

India’s export sector, especially small and medium enterprises (MSMEs), often faces challenges in accessing trade finance when dealing with new or under-served markets. Banks may perceive higher risk in such markets, making it difficult for exporters to secure financing for international trade transactions.

To address this gap, the Government of India has introduced this intervention under the Export Promotion Mission (EPM) framework.

The policy focuses on:

• Improving global trade connectivity
• Increasing liquidity in emerging markets
• Enhancing confidence in cross-border financial transactions
• Strengthening cooperation between Indian banks and foreign banks

The initiative is supported by the Export-Import Bank of India (Exim Bank) through a risk-sharing mechanism backed by the Government of India.

Key Highlights of the Notification

The major highlights of the DGFT notification include:

• Launch of Support for Emerging Export Opportunities under the Export Promotion Mission (EPM) – NIRYAT PROTSAHAN
  • The intervention has been implemented prospectively with immediate effect
  • Objective is to facilitate global trade connectivity and liquidity in under-served markets
  • Risk-sharing support will be provided through the Export-Import Bank of India (Exim Bank)
  • Focus on enabling MSMEs involved in international value chains to access trade finance
  • Banks will be able to offer non-recourse trade finance instruments to exporters
  • The intervention will initially be implemented on a pilot basis
  • The policy framework and operational guidelines are provided in Annexures I to V
  • Stakeholder feedback has been invited within 30 days from the date of issuance of the Trade Notice in accordance with Paragraph 1.07A of the Foreign Trade Policy (FTP) 2023

Detailed Explanation of the Intervention

1.Enhancing Trade Connectivity

The intervention aims to improve trade linkages between India and under-served global markets. These markets often present significant export potential but lack adequate financial infrastructure or banking support.

By improving financing mechanisms, the government intends to encourage exporters to explore new geographic markets.

2.Risk-Sharing Support through Exim Bank

A key feature of the scheme is the risk-sharing support backed by the Government of India through the Export-Import Bank of India (Exim Bank).

This mechanism will help banks manage the risk associated with financing exports to emerging or less-established markets.

As a result:

• Banks may be more willing to extend credit for export transactions
• Exporters may gain better access to trade finance

3.Access to Non-Recourse Trade Finance

The initiative will enable banks to offer non-recourse trade finance instruments to exporters.

In non-recourse financing:

• The bank assumes the risk of payment default
• The exporter is protected from certain financial risks in international trade transactions

This can significantly improve the competitiveness of Indian exporters in global markets.

4.Pilot Implementation

The intervention will be operationalised on a pilot basis.

This pilot approach will allow the government to:

• Collect feedback from stakeholders
• Enable institutional learning
• Make data-driven improvements to the framework before full-scale implementation

5.Policy Framework and Guidelines

The DGFT notification includes multiple annexures that provide the detailed structure of the intervention:

• Annexure I: Detailed Policy Framework
  • Annexure II: Operational and Procedural Guidelines
  • Annexure III: Governance Structure
  • Annexure IV: Guidelines for Banks
  • Annexure V: Pilot Implementation Framework

Impact on Businesses

Exporters

Exporters, particularly those targeting emerging or under-served international markets, may benefit from:

• Easier access to trade finance
• Reduced financial risk in export transactions
• Better support from banking institutions

Importers and International Buyers

International buyers in under-served markets may experience improved trade settlement confidence, which can encourage greater trade engagement with Indian exporters.

MSMEs

The intervention is especially beneficial for MSMEs integrated into global value chains, as they often face the greatest challenges in accessing international trade financing.

With improved financing support, MSMEs can:

• Expand export operations
• Enter new global markets
• Improve competitiveness in international trade

Banks and Financial Institutions

Banks will benefit from the risk-sharing mechanism provided through Exim Bank, enabling them to support exporters with greater confidence and reduced financial exposure.

Compliance Guidance for Businesses

Businesses involved in international trade should consider the following steps:

• Review the policy framework and operational guidelines provided in the annexures
  • Consult with their banking partners regarding availability of trade finance instruments under this intervention
  • Evaluate new export opportunities in emerging markets
  • Monitor updates from DGFT regarding pilot implementation outcomes

Stakeholders may also submit comments and suggestions on the guidelines within 30 days from the date of issuance of the Trade Notice via email at:

epm-dgft@gov.in

This feedback mechanism has been provided in accordance with Paragraph 1.07A of the Foreign Trade Policy (FTP) 2023.

Expert Insight

The launch of this intervention reflects the Government of India’s strategic focus on diversifying export markets and strengthening financial infrastructure for international trade.

For exporters, especially MSMEs, this initiative may reduce financial barriers when entering new and emerging markets. Access to non-recourse trade finance and risk-sharing mechanisms can improve the ability of businesses to scale exports.

In the long term, such initiatives can contribute to greater resilience and diversification in India’s export ecosystem.

Conclusion

The Support for Emerging Export Opportunities under Export Promotion Mission (EPM) – NIRYAT PROTSAHAN marks an important step toward improving India’s global trade competitiveness.

By addressing financing challenges in under-served markets and enabling risk-sharing support through Exim Bank, the initiative aims to empower exporters—particularly MSMEs—to explore new international opportunities.

As the intervention is currently being implemented on a pilot basis, stakeholder participation and feedback will play a key role in shaping its future framework.

The annexures are attached below for reference.
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Notification Reference:  CBIC
Trade Notice 32/2025-2026
o6/03/2026