The Government of India is set to immediately trigger the $2.81 billion Export Mission Framework (EPM) guidelines this week, a move acting as a financial shield for the textile and apparel industry facing unprecedented US tariff shock. The sector, responsible for significant employment, saw a double-digit decline in October, with apparel exports shrinking 12.88% year-on-year, primarily due to the steep 50% tariff imposed by the US since August. This immediate injection aims to stabilize the reeling industry.

Direct financial blitz for MSMEs

The six-year, ₹25,060 crore EPM is structured around two sub-schemes: Niryat Protsahan (₹10,401 crore) and Niryat Disha (₹14,659 crore). The focus of Niryat Protsahan is a direct financial blitz for Micro, Small, and Medium Enterprises (MSMEs), which comprise a large part of the textile value chain. Measures include interest subvention (subsidy on loan interest) and collateral guarantees to ensure affordable trade finance. This direct fiscal support is crucial to help MSMEs sustain orders and avoid mass layoffs, addressing the challenge of costly capital compared to rival exporting nations.

Technical Textiles: The resilient growth bet

A new angle of the government's strategy is the powerful bet on Technical Textiles—specialized products like medical gear and construction fabrics, which offer higher margins than traditional apparel. The EPM's non-financial arm, Niryat Disha, will fund international branding and quality compliance, accelerating diversification away from traditional, highly competitive markets.

The EPM is set to fast-track the sector's goal of reaching $100 billion in T&A exports by 2030 by focusing on such resilient, future-ready products.