Budget 2025: Export Promotion Mission to boost MSME exports

Finance Minister Nirmala Sitharaman presented four engines of development for Viksit Bharat - agriculture, micro, small and medium enterprises (MSMEs), investments and exports.

Sitharaman, while presenting Budget 2025 today in the Parliament, defined exports as the fourth engine of growth, and said that an Export Promotion Mission, jointly driven by the Ministries of Commerce, MSME and Finance, will help MSMEs, which account for 45 percent of exports, tap into the export market.

A digital public infrastructure, BharatTradeNet (BTN) for international trade, has been proposed as a unified platform for trade documentation and financing solutions.

The finance minister also proposed various exemptions on duties and tariffs to boost exports. "India’s seafood exports in the last financial year touched an all-time high of more than Rs 60,000 crore. Frozen shrimp accounted for about two-thirds of these exports. To enhance their competitiveness, I propose to reduce BCD on certain broodstock, polychaete worms, shrimp and fish feed to five per cent. I also propose to exempt customs duty on various inputs for manufacture of shrimp and fish feed."

The proposal also includes full exemption of basic customs duty (BCD) on wet blue leather for value addition and employment. "I also propose to exempt crust leather from 20 percent export duty to facilitate exports by small tanners," Sitharaman said.

To facilitate exports of handicrafts, "I propose to extend the time period for export from six months to one year, further extendable by another three months, if required. I also propose to add nine items to the list of duty-free inputs."

Industry lauds moves
Girish Aggarwal, Managing Director, APM Terminals Pipavav says the government’s focus on boosting exports through measures like the Export Promotion Mission, simplification of customs procedures, and extended export timelines for handicrafts and leather sectors will significantly enhance India's trade footprint. "These steps, coupled with rationalised customs tariffs and reduced duties, will drive both export growth and domestic consumption. Transforming India Post into a large public logistics network with 1.5 lakh rural post offices will improve last-mile delivery and connect rural businesses to broader markets. Providing private companies access to PM Gati Shakti data will simplify project planning and strengthen public-private partnerships. This budget lays a strong, forward-looking foundation for growth in the maritime and logistics sectors."

Arshdeep Singh Mundi, Executive Director, Jujhar Group adds that the introduction of BharatTradeNet will revolutionise India’s logistics sector by streamlining trade documentation and financing. "By creating a unified platform, it will enhance efficiency, reduce delays, and provide seamless support for global supply chains. This initiative will not only simplify cross-border transactions but also foster greater connectivity with international markets, driving India’s competitiveness on the global stage. As a result, India’s logistics sector will experience faster growth, increased trade volume, and stronger global integration."

The government’s decision to establish an Export Promotion Mission for facilitating easier access to export credits, providing cross-border factoring support and assisting MSMEs in overcoming non-tariff barriers is a highly commendable step, as it will empower MSMEs to expand their international footprint," according to Ketan Kulkarni, Managing Director, Allcargo Gati. "Additionally, the budgetary announcement of providing easy term loans of up to Rs 20 crore is going to provide a significant financial boost to MSMEs, enabling them to scale operations and enhance competitiveness."

Ajay Rao, CEO & Founder, Emiza says the introduction of BTN as a unified trade documentation and financing platform is a transformative step for the logistics sector. Streamlining trade processes and aligning with global standards will enhance efficiency and competitiveness.

"Additionally, government support for integrating domestic manufacturing into global supply chains will strengthen India's position in Industry 4.0. As a 3PL leader, I welcome these measures and look forward to further enhancements in port infrastructure, road connectivity, and sustainable logistics solutions to drive long-term growth."

To enhance the productivity, quality and competitiveness of the footwear and leather sector, a focus product scheme will be implemented, Sitharaman announced in Budget 2025. "The scheme will support design capacity, component manufacturing and machinery required for production of non-leather quality footwear, besides the support for leather footwear and products. The scheme is expected to facilitate employment for 22 lakh persons, generate turnover of Rs 4 lakh crore and exports of over Rs 1.1 lakh crore."

Investments in port modernisation, logistics infrastructure and digital trade platforms will reduce transaction costs and improve the efficiency of cross-border trade, says Ashwani Kumar, President, Federation of Indian Export Organisations (FIEO). "Further simplification of customs procedures announced in the Budget will simplify customs clearance processes and reduce compliance burden and further enhance the ease of doing business for exporters and importers."