The Union Cabinet on Wednesday approved a ₹45,000-crore package for exporters amidst the tariff turbulence. The package includes a ₹25,000 crore export promotion mission and expansion of the credit guarantee scheme for exporters with an outlay of ₹20,000 crore.

The government said the export promotion mission (EPM) will provide a comprehensive, flexible, and digitally driven framework for export promotion, with a total outlay of ₹25,060 crore for FY 2025–26 to FY 2030–31. The credit guarantee scheme will provide collateral-free credit up to ₹20,000 crore to MSME and non MSME exporters.     

“A deep-level consultation has taken place between different ministries and relevant departments with exporters in the past one-and-a-half months. A clear recommendation that came from them was for the government to take steps to significantly reduce the cost of credit, amount of credit, and period of credit,” said Ashwini Vaishnaw, Union Minister of Information and Broadcasting, Railways, and Electronics and Information Technology, during the briefing.

The scheme will provide an additional working capital of up to 20% of the sanctioned export working capital limit, depending on whether the capital is sourced from banks or NBFCs. It will provide collateral-free support and a 100% Government of India guarantee through the National Credit Guarantee Trustee Company. Although the validity of this scheme is till 31st March, 2026, the scheme can be extended after consultation with the finance ministry, Vaishnaw added.

“It is an important step to support the exporters at a critical time,” added Vaishnaw. The scheme will boost the global competitiveness of Indian exporters and support the exploration of new export markets.

Concurrently, the Union Cabinet has also approved steps to boost the production of critical minerals. The cabinet has approved the rationalisation of royalty rates of Graphite, Caesium, Rubidium, and Zirconium. “These elements have a widespread usage in strategic industries such as electric vehicles and electronics manufacturing,” Vaishnaw added.

For graphite, the royalty will change from a per tonne basis to an ad valorem basis. For graphite with 80% or more carbon, the royalty will be 2% of the Average Sale Price (ASP), and for other grades, it will be 4% of the ASP. For Rubidium and Caesium, it will be 2% of the ASP, and for Zirconium, it will be 1% of the ASP. 

The government plans to auction Graphite, Zirconium, Rubidium, and Caesium blocks, and the change in royalty rates will facilitate better participation. Vaishnaw also said that relevant amendments in the Second Schedule of the Mines and Minerals Development Act need to be made, and not in the main body of the legislature.

Resolution on Delhi terror attack

The Union Cabinet also expressed its profound grief today over the loss of lives in the terrorist incident involving a car explosion near the Red Fort in Delhi on November 10 and observed two minutes' silence in honour of the innocent lives lost. The Cabinet also adopted a resolution condemning the “dastardly and cowardly” act. “The Cabinet reiterates India's unwavering commitment to a policy of zero tolerance towards terrorism in all its forms and manifestations,” the resolution said.