Lok Sabha Question No. 1096 (UNSTARRED), answered on 2026-02-05
Subject: Decline in MSMEs Export
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Smt. Rachna Banerjee

## GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 1096 TO BE ANSWERED ON: 05.02.2026

## DECLINE IN MSMEs EXPORT

## 1096.           SMT. RACHNA BANERJEE:

Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:

- (a) whether it is a fact that support to Micro, Small and Medium Enterprises (MSMEs) on exports has reduced by 23 per cent between 2023 and 2024, if so, the details thereof; and
- (b) the reason for the said reduction?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SUSHRI SHOBHA KARANDLAJE)

(a) & (b): The Government has undertaken the following initiatives to support Micro, Small and Medium Enterprises (MSMEs)and boost their competitiveness in global value chain:

- i. Export Promotion Mission (EPM): -The Mission will provide a comprehensive, flexible, and digitally driven framework for export promotion, with a total outlay of Rs.25,060 crore for FY 2025-26 to FY 2030-31. EPM marks a strategic shift from multiple fragmented schemes to a single,  outcome-  based,  and  adaptive  mechanism  that  can  respond  swiftly  to  global  trade challenges and evolving exporter needs.

The Mission will operate through two integrated sub-schemes:

- NIRYAT PROTSAHAN - focuses on improving access to affordable trade finance for MSMEs through a range of instruments such asinterestsubvention,  export  factoring, collateral guarantees, credit cards for e-commerce exporters, and credit enhancement support for diversification into new markets.
- NIRYAT DISHA - focuses on non-financial enablers that enhance market readiness and competitiveness, including export quality and compliance support, assistance for international branding, packaging, and participation in trade fairs, export warehousing and  logistics,  inland  transport  reimbursements,  and  trade  intelligence  and  capacitybuilding initiatives.
- ii. Credit  Guarantee  Scheme  for  Exporters  has  also  been  approved  to  provide  100%  credit guarantee  coverage  by  National  Credit  Guarantee  Trustee  Company  Limited  (NCGTC)  to Member Lending Institutions (MLIs) for extending additional collateral free credit facilities up  to  Rs.20,000  crore  to  eligible  exporters,  including  MSMEs.  The  Scheme  is  expected  to enhance the global competitiveness of Indian exporters and support diversification into new and  emerging  markets.  Enabling  collateral-free  credit  access  will  strengthen  liquidity  and ensure smooth business operations.

- iii. PM Gati  Shakti  National  Master  Plan  enabling  comprehensive  and  integrated  planning  for multimodal logistics.
- iv. National  Logistics  Policy  (NLP),  which  aims  to  drive  economic  growth  and  business competitiveness of the country through cost-effective logistics network.
- v. International Cooperation Scheme: The scheme aims to capacity build MSMEs for entering export market by facilitating their participation in international exhibitions/ fairs/ conferences/ seminar/  buyer-seller  meets  abroad  as  well  as  reimbursement  of  various  costs  involved  in exports.
- vi. Comprehensive GST rationalisation recently done by the government will strengthen MSMEs fortifying  local  supply  chains  in  critical  sectors  like  automobiles,  textiles,  food  processing, logistics,  and  handicrafts.  Lower  GST  rates  have  made  raw  materials  and  services  more affordable,  motivating  small  and  medium  enterprises  and  start-ups  to  scale  up  operations, invest in innovation, and compete both domestically and globally.

The sustained and targeted policy  interventions  undertaken  by  the  Government  have  led  to increase in the share of MSMEs in overall merchandise exports from 45.74 per cent in 2023-24 to 48.55 per cent in 2024-25 (in USD value terms).

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