Iran War Impact: The central government is planning to introduce a new scheme that will help the exporters, as they are going through a tough phase because of the geopolitical tensions that have been going on. A senior government official stated that the government is trying to find ways to help the businesses that could be affected due to the problems in the international trade.
The government is also planning to change the Export Promotion Mission so that they can offer some extra benefits to the exporters. But the decision will depend on the situation that is going to be in the next few days. If the situation doesn’t improve, the government can introduce new schemes to help the exporters
How the Ongoing Conflict Could Impact Global Trade
Exporters and industries that are heavily dependent on energy sources have already shown concern over the possible outcomes of the ongoing conflict between the United States, Israel, and Iran. Industry experts are concerned that if the conflict continues for a longer time and expands over a wider area, it would affect the global trade routes.
This would increase the freight rates and the insurance premiums for the goods being transported. This would increase the overall cost of exports and would make international trade more challenging for the Indian exporters.
What Is the Export Promotion Mission and How Does It Support Exporters?
The Export Promotion Mission is a key initiative by the government to enhance the Indian export ecosystem. The programme provides integrated assistance in areas such as trade finance, compliance with standards, logistics, overseas warehousing, and market development.
The government approved the Export Promotion Mission in November 2025, with the aim of bringing together a range of export promotion initiatives under a single platform, led by technology. The programme aims to enhance the competitiveness of Indian exporters and increase India’s presence in the international market.
Budget Allocation and Timeline of the Export Promotion Mission
According to official information, the total financial allocation for the Export Promotion Mission is Rs 25,060 crore and is applicable for the period between FY 2025-26 and FY 2030-31.
What Are the Two Key Components of the Export Promotion Mission?
The Export Promotion Mission has two sub-schemes that are integrated and focus on different aspects related to the export industry. The first sub-scheme is the Niryat Protsahan, which is mainly related to providing financial support and focuses on strengthening the trade finance system and other financial enablers.
The second sub-scheme is the Niryat Disha, which is related to the non-financial aspects and focuses on improving market access, the export ecosystem, and helping Indian businesses enter new markets across the world.
Why Exporters Are Worried About the Current Situation
The impact on trade has already been a matter of concern for industry leaders. In this regard, Pankaj Chadha said, “The situation is quite worrying for us from a trade perspective.”
He further said that Saudi Arabia and the United Arab Emirates are key markets for India’s engineering goods exports. In addition, these countries act as gateway markets for trade with the rest of West Asia and North Africa (WANA).
How Rising Insurance and Energy Costs Could Affect Exports
SC Ralhan stated that the conflict is already beginning to affect the traditional global logistics routes. According to him, an increase in geopolitical risks typically results in an increase in marine insurance costs, thereby increasing the total cost of transporting goods.
Export organisations also indicate that, in the event that the conflict is sustained, the prices of energy globally could increase, thereby raising the costs of production, making it difficult to sustain currency stability, such as the Indian rupee, making it difficult for exporters to be competitive in the international market.
