The Union Cabinet of India approved a support package of around ₹45,000 crore aimed at bolstering exports and helping the MSME (Micro, Small & Medium Enterprises) sector amid rising global trade headwinds. This comes in the context of the United States having imposed steep tariffs (up to ~50%) on several Indian export items — textiles, jewellery, leather goods, chemicals — which has put significant pressure on labour-intensive sectors. The package is split broadly into two parts: An outlay of about ₹25,060 crore for the “Export Promotion Mission (EPM)” over a period of six years (starting FY26) aimed at strengthening India’s export ecosystem. Around ₹20,000 crore for a Credit Guarantee Scheme for Exporters (CGSE) — providing collateral-free credit guarantees and additional working capital support for exporters. The EPM will consolidate previous fragmented export-support schemes (such as Interest Equalisation, Market Access) into a more coherent framework, with two key pillars: “Niryat Protsahan” (trade-finance support for MSMEs) “Niryat Disha” (non-financial support: branding, logistics, compliance, export warehousing, etc.) Priority sectors for support: textiles, leather, gems & jewellery, engineering goods, marine products — especially those impacted by tariffs and global demand headwinds. 📌 Why it matters For India’s export-oriented MSMEs, the timing is crucial: these firms are under pressure from higher input costs, global slowdown, tariff barriers and supply-chain disruptions. Such a package aims to ease liquidity, reduce cost burden and help explore new markets. By consolidating export-support under the EPM, the government intends to streamline subsidies/supports, reduce duplication and deliver targeted support based on outcome rather than just input. Boosting exports is important for India’s economic growth, employment (especially in labour-intensive sectors) and external sector balance. A strong export package sends a signal of policy support. The non-financial support component (branding, warehousing, logistics) recognises that competitiveness is not just about subsidies, but about capability, compliance and market access. ⚠️ Things to watch / caveats Even though the headline commitment is large (~₹45,000 crore), effective disbursement, timely implementation and clarity of guidelines will be critical. Some analysts have flagged that moving from policy announcement to execution may take time. For example, a think-tank noted that the EPM still lacks detailed schemes and processes. The global environment remains challenging: tariff risks (especially from the US), geopolitical supply-chain stresses, and competition from other low-cost countries. The package is helpful, but it does not eliminate these risks. There will be a need to ensure that the support reaches smaller exporters (MSMEs) and not just large firms. Also, monitoring the impact and avoiding misuse will be important. The focus on priority sectors is helpful, but diversification into newer markets (beyond traditional ones) will be essential to offset tariff risk and global demand weakness.