Export Promotion Mission (EPM) Schemes Explained: Benefits, Eligibility & Support for Indian MSMEs

The Government of India has introduced and operationalised multiple sub-schemes under the Export Promotion Mission (EPM) to strengthen India’s export ecosystem and enhance global competitiveness. These schemes are now effective and eligible exporters, particularly MSMEs, can begin availing benefits under the respective components.

The Export Promotion Mission is structured under two broad pillars:

1. Niryat Disha

(a) Trade Regulations, Accreditation & Compliance Enablement (TRACE)

(b) Facilitating Logistics Interventions for Freight & Transport (LIFT)

(c) Facilitating Logistics, Overseas Warehousing & Fulfillment (FLOW)

(d) Integrated Support for Trade Intelligence & Facilitation (INSIGHT)

(e) Market Access Support (MAS)

2. Niryat Protsahan

(a) Interest Subvention for Pre- and Post-Shipment Export Credit

(b) Collateral Support for Export Credit

(c) Alternative Trade Instruments

In our earlier blog, linked here - https://www.consultancycounsel.com/post/export-promotion-mission-epm-a-unified-export-support-framework

we covered the following schemes in detail:

*Market Access Support (MAS)

*Interest Subvention for Pre- and Post-Shipment Export Credit

*Collateral Support for Export Credit

This blog focuses on the remaining schemes under the Export Promotion Mission, outlining their objectives, eligibility criteria, scope of support, and practical benefits for exporters especially MSMEs seeking to expand their international footprint.

All the above schemes have now been made effective, and eligible MSMEs can claim benefits in accordance with the notified guidelines.

Support for Alternative Trade Instruments (EPM NIRYAT PROTSAHAN)

Objective

The initiative aims to strengthen access to export finance for MSMEs by facilitating alternative trade finance mechanisms specifically export factoring to supplement traditional bank-based export credit. It seeks to provide a transparent, rules-based support mechanism to lower the cost of liquidity for MSMEs involved in international value chains.

Eligibility

To be eligible for support, entities and transactions must meet the following criteria:

• Entity Type: Must be an MSME with a valid active Importer-Exporter Code (IEC) (not in the Denied Entity List) and a valid MSME Udyam Registration Number.

• Recognized Institutions: Factoring must be extended by entities recognized by the Reserve Bank of India (RBI) or the International Financial Services Centres Authority (IFSCA).

• Product Scope: Applicable only for exports under the notified "Positive List" of tariff lines at the HS 6-digit level (Annexure-V).

• Transaction Date: Support is available for export factoring arrangements entered on or after February 20, 2026.

• Exclusions: Support is not admissible for deemed exports or exports to Special Economic Zones (SEZ).

Procedure

The process for availing the subvention involves the following steps:

• Intent Declaration: Before availing the factoring facility, the applicant must submit an online declaration of intent through the designated portal.

• UIN Generation: Upon successful submission, a Unique Identification Number (UIN) is generated, which remains valid until the end of the financial year.

• Transaction Initiation: The exporter approaches the selected factor with the UIN to initiate the factoring transaction.

• Claim Submission: Factoring agencies submit IEC-wise subvention claims online through the portal on a monthly basis.

• Verification and Payment: After examining the claim, the competent authority approves the subvention, which is credited directly to the exporter's bank account linked to their IEC.

Benefits

The scheme provides direct financial relief to reduce the cost of export factoring:

• Interest Subvention: Support is provided as interest subvention or equivalent cost support on the interest cost element of export factoring.

• Subvention Rate: The current rate of subvention is 2.75%.

• Financial Ceiling: The total subvention amount is capped at Rs. 50 Lakh per MSME in a given financial year.

• Category Protection: MSMEs that graduate to a higher category during the year remain eligible for support for three years from the date of re-classification.

Integrated Support for Trade Intelligence & Facilitation (INSIGHT)

Objective

The INSIGHT intervention aims to strengthen exporter preparedness and institutional support systems by addressing information asymmetries, procedural frictions, and capacity gaps, particularly for MSMEs. It seeks to enhance export readiness and market responsiveness through structured, non-financial support measures like capacity building and trade intelligence.

Eligibility

The following entities are eligible to submit proposals for assistance under INSIGHT:

• Export Promotion Councils (EPCs) and Commodity Boards.

• Offices and agencies of the Department of Commerce, including regional offices.

• Ministry of External Affairs and Indian Missions Abroad.

• Academic and research institutions recognized under Central/State Acts or by the UGC.

• District (DEPC) and State (SEPC) Export Promotion Committees.

• Organizations or associations recommended by the Ministry of MSME, Ministry of External Affairs, or Central/State Governments.

Procedure

Implementation and monitoring are managed by the Export Promotion Mission (EPM) Section of the DGFT. The process includes:

• Online Submission: Proposals must be submitted via prescribed online forms specifying objectives, costs, and measurable outcomes.

• Appraisal: Proposals are appraised by a Sub-Committee on Trade Facilitation and Intelligence based on rationale and potential impact.

• Fund Release: Assistance is released in installments. The first is typically an advance, with subsequent releases contingent on progress.

• Compliance: Entities must submit utilization certificates and certify physical/financial progress for continued fund release.

• Intellectual Property: For fully funded projects, IPR typically vests with the Government of India.

Benefits

INSIGHT provides structured financial and technical support across four key sub-areas. Financial assistance is generally limited to 50% of the project cost for private/industry bodies and up to 100% for government entities:

Intervention Category	Financial Support Ceiling
Modules & Toolkits in Emerging Areas	Max Rs. 15 Lakhs (50% of cost)
Training & Capacity-Building Programs	Max Rs. 25 Lakhs (50% of cost)
Research Studies & Innovation Pilots	Max Rs. 25 Lakhs (50% of cost)
District/Cluster-Level Facilitation	Max Rs. 50 Lakhs (50% of cost)

Technical Benefits: Exporters gain access to structured trade intelligence, digital platforms, and expertise in emerging areas of international trade.

Facilitating Logistics, Overseas Warehousing & Fulfillment (FLOW)

Objective

The FLOW initiative is designed to mitigate logistics-related constraints faced by MSMEs in accessing overseas markets. It supports entities in improving delivery efficiency and reducing logistics costs through access to overseas storage, distribution, and fulfillment infrastructure.

Eligibility

To qualify for assistance, an entity must be incorporated in India under applicable Indian law. Eligible categories include:

• Export Promotion Councils (EPCs) and Commodity Boards.

• Logistics, Warehousing, or Fulfilment Service Providers with international operations.

• Industry associations or recognized exporter clusters.

• Central/State Government organizations or entities recommended by them.

• Approved projects must ensure a minimum of 20% of annual merchandise volumes are provided to Indian MSMEs.

Procedure

The implementation is managed by the EPM Section of the DGFT. The process involves:

• Online submission of proposals specifying objectives, target markets, costs, and measurable outcomes.

• Consultation with Indian Missions Abroad for due diligence and market feasibility inputs.

• Release of funds in two or more equal installments based on prescribed milestones.

• Submission of utilization certificates and progress reports as a prerequisite for subsequent fund releases.

Benefits

Assistance is provided for a maximum of 3 years and covers lease/rental charges and operational expenses directly linked to the project. Financial support is capped at 30% of proposal costs as follows:

Intervention	Support Ceiling
Overseas Warehousing Facility	Max Rs. 10 Crores per year
E-Commerce Export Hubs	Max Rs. 10 Crores per year
Display or Market Access Facilities	Max Rs. 5 Crores per year
Overseas Fulfilment Arrangements	Max 5 Lakh per month

Facilitating Logistics Interventions for Freight & Transport (LIFT)

Objective

The LIFT initiative aims to address geographical disadvantages and regional logistics gaps faced by MSMEs in low export intensity areas. It focuses on lowering freight and logistics costs by offsetting structural inefficiencies in inland connectivity for remote or hinterland regions.

Eligibility

To qualify for support, the following conditions must be met:

• Location: Exports must originate from eligible districts listed in the guidelines (including all districts in NE states, Himachal Pradesh, Uttarakhand, etc.).

• Entity Type: Must be an MSME with an active Importer-Exporter Code (IEC) and a valid MSME Udyam Registration Number.

• Product Scope: Assistance is applicable only to the notified list of products (e.g., Walnuts, Saffron, Bamboo articles, etc.).

• Distance: The distance between origin and destination must be at least 200 km for freight movements to an ICD, CFS, ACC, or seaport.

• Mode of Transport: Shipments via rail or road are eligible; air transport is also supported specifically for Northeastern regions.

Procedure

Exporters must follow a two-stage online process through the DGFT portal:

• Stage I (Intent-to-Claim): File an online intent before transporting exports to generate a unique UIN. This intent is valid until the end of the financial year or for 12 months.

• Stage II (Reimbursement Claim): After completion of export and generation of shipping bill, file the claim by tagging the relevant Intent-to-Claim

• Filing Frequency: Valid claims must be filed on a quarterly basis with the jurisdictional DGFT Regional Authority.

• Documentation: Applications must include a copy of the transport invoice, proof of payment, Shipping Bill, and E-Way Bill.

Benefits

The initiative provides financial relief to MSMEs to make their exports more competitive:

• Financial Support: Partial reimbursement of 30% of the actual eligible freight expenditure (excluding taxes).

• Ceiling: A maximum cumulative reimbursement of Rs. 20 lakh per IEC per financial year is admissible.

• Calculation Cap: For calculation purposes, the eligible freight value is capped at 20% of the FOB value of the goods.

• Direct Disbursement: Approved reimbursement amounts are disbursed directly to the applicant's bank account linked to their IEC.

Trade Regulations, Accreditation & Compliance Enablement (TRACE)

Objective

The TRACE initiative aims to support MSMEs in meeting internationally recognised quality, safety, and technical standards required for global market access. It enhances the capacity of exporters to demonstrate conformity with standards and comply with regulatory requirements of importing countries, thereby upgrading product quality.

Eligibility

To qualify for support under the TRACE initiative, an entity must fulfill the following criteria:

• Must be an MSME involved in international value chains.

• Hold an active Importer-Exporter Code (IEC) that is not on the Denied Entity List.

• Possess a valid MSME Udyam Registration Number.

• Merchant MSMEs are eligible for support only for specific tariff lines (Annexure-VII) predominant in aggregator models.

• Activities (testing, inspection, certification) must be undertaken on or after February 20, 2026.

Procedure

The scheme follows a structured two-stage online application process through the DGFT portal:

• Stage I (Intent-to-Claim): Applicants must file an online "Intent-to-Claim" (IC) before obtaining the relevant certifications or test reports]. This intent is valid for 2 years.

• Certification Process: The exporter clears and obtains the required testing, certification, or inspection outcome.

• Stage II (Reimbursement Claim): After obtaining the certification, the entity files a "Reimbursement Claim" (RC) online, tagging the previously filed IC and uploading necessary documents (invoice, proof of payment, etc.).

• Quarterly consolidation: Valid claims are consolidated and processed quarterly by the jurisdictional authority.

• Direct Disbursement: Approved reimbursement amounts are disbursed directly to the bank account linked to the IEC.

Benefits

TRACE provides financial assistance to offset the costs of international compliance:

• Financial Support: Partial reimbursement of actual costs (net of taxes) or notified ceiling, whichever is lower.

• Annual Ceiling: A maximum cumulative reimbursement of Rs. 25 lakh per IEC per financial year is admissible.

• Reimbursement Rates: Supports up to 60% of costs for the "Positive List" and up to 75% for the "Priority Positive List" of certifications.

• Comprehensive Coverage: Includes both one-time costs (audits, facility assessments) and recurring costs (ongoing compliance, buyer-mandated certificates).

• Incentivised Platforms: Certifications validated through Quality Setu or Bharat Aayat Niryat Lab platforms may receive expedited processing.