Boost Exports: GTRI calls for Rs 2,500 cr for exporters

New Delhi, Aug 30 (PTI) Expressing concern over decline in export promotion funding, economic think tank GTRI said on Saturday said the government should consider allocating Rs 2,500 crore for exporters to participate in global exhibitions under the Market Access Initiative (MAI), which has not received any funds this fiscal.

It said that exporters have missed critical opportunities between April and August to participate in overseas fairs.

"With a modest budget of only Rs 250 crore in past years, the scheme was already too small for a USD 440 plus billion export economy. It must be revived with a scaled-up budget of Rs 2,500 crore annually, with funds released at least a year in advance to allow Indian firms to secure high-visibility slots at global fairs," Global Trade Research Initiative (GTRI) Founder Ajay Srivastava said.

He also called for resumption of Interest Equalisation Scheme (IES), immediate roll out of the Export Promotion Mission (EPM), and E-commerce Export Hubs to boost exports amid 50 per cent tariffs imposed by the US on Indian goods.

Further, Srivastava recommended speeding up of Customs clearance, making the Remission of Duties and Taxes on Exported Products scheme benefits predictable, and simplification of advance authorisation scheme.

"The MAI, which helped exporters participate in overseas exhibitions, has not received any funds in FY2025, the first such lapse in decades. As a result, exporters missed critical opportunities between April and August, and even if funds are released later, prime exhibition spaces booked 1-2 years in advance will no longer be available," he said.

He added that the suspension of the Interest Equalisation Scheme (IES) since April 2025 has left MSME exporters struggling with high financing costs compared to the 5-7 per cent lower rates they previously enjoyed under the scheme.

"This has eroded competitiveness for labour-intensive sectors such as textiles, leather, handicrafts, and engineering goods," he said adding to restore their cost advantage and ensure predictability, IES must be reinstated to cover all exports and with an expanded annual budget of Rs 15,000 crore and a five-year commitment.

Further the policy to establish E-commerce Export Hubs, announced in February 2023, has not progressed, with no infrastructure or guidelines in place to allow shipments, GTRI said.

Urgently, operationalizing hubs could unlock USD 10-15 billion in additional annual exports in just a few years, it said.

On the customs front, he said, exporters continue to face serious inefficiencies at ports.

Independent year-round monitoring could reduce logistics costs by 5-7 per cent of export value, he said.

Expressing concern, Srivastava said export promotion funding has steadily declined, weakening support for small and mid-sized exporters.

The earlier MEIS scheme had a Rs 45,000 crore outlay benefitting 40,000 exporters, but it was abolished in 2020 and replaced by RoDTEP and RoSCTL with barely Rs 20,000 crore, he said.

"The bulk of funds were shifted to the PLI scheme, which has benefitted fewer than 100 firms, with limited disbursements. To restore balance, India must allocate higher amounts annually to broad- based export schemes, ensuring widespread support for MSMEs, while continuing PLI for large- scale sectors," he suggested.

Diversifying exports, he said, to new markets will not happen overnight, but by cutting costs by 5-10 per cent through revived schemes, streamlined procedures, and expanded funding, India can buy time and space for exporters to gradually expand beyond the US market.