Firdous Ahmad
Srinagar, Nov 13: India’s newly approved Export Promotion Mission (EPM) is one of the most ambitious export-support initiatives launched in recent years. With a budget of ₹25,060 crore, the Mission aims to modernise export financing, improve logistics, and strengthen market access for Indian businesses—changes that could be particularly game-changing for Jammu and Kashmir (J&K).
Kashmir’s export economy has been struggling with falling handicraft shipments, costly logistics, and limited credit access for MSMEs. The EPM directly targets these pain points. Here is an explainer on what the Mission means for Kashmir and how it could reshape the region’s export landscape.
Why Kashmir Needs an Export Push
- A Strong Tradition—But Declining Numbers
Kashmir is known globally for Pashmina, carpets, walnut woodwork, papier-mâché, apples, walnuts, saffron, and dried fruits. These sectors collectively employ lakhs of artisans, growers and seasonal workers.
However, official export values have sharply declined:
Handicraft exports fell to ₹733 crore in 2024–25, a steep drop from past years.
Growers continue to face volatile market prices, unpredictable transport disruptions, and high cold-chain costs.
Lack of modern packaging and processing infrastructure limits fruit and craft exports.
The region’s exporters often say the same: “Demand exists, but the system doesn’t support us.”
Small exporters repeatedly fail to secure loans due to:
What Are the Key Issues?
- Credit Crunch for MSMEs
Poor or disrupted CIBIL histories
High collateral requirements
Seasonal cash flows
Lack of export-specific credit products
This has forced many artisans and small manufacturers to scale down operations.
- Logistics Bottlenecks
Kashmir has no dedicated international cargo terminal, and Srinagar’s cargo flight services are irregular, making it difficult to ship high-value, perishable and delicate goods.
Exporters often route goods through Delhi, raising costs by 30–40%.
- Weak Global Branding
Even globally admired products like Pashmina and Kashmiri apples lack:
Strong international campaigns
Geographical indication (GI) enforcement
Branding and packaging support
This limits the region’s ability to command premium prices.
- Fragmented Support Structure
Exporters currently navigate:
DGFT
State industries department
MSME department
Handicrafts and Horticulture departments
Banks
Each has its own forms and compliance requirements—time-consuming for micro-businesses.
What the Export Promotion Mission Offers Kashmir
The EPM has three major components designed to fix the exact issues facing J&K.
- Niryat Protsahan: A Lifeline for Small Exporters
This is the finance-focused vertical and will help Kashmir in several ways:
Cheaper export credit (pre- and post-shipment)
Credit guarantees for businesses with low credit scores
Interest subvention for MSMEs
Alternative financial instruments for export working capital
For Kashmir’s artisan families, walnut exporters, carpet manufacturers, and fruit processors, this could be the single biggest reform in decades.
Why this matters for Kashmir:
Many exporters currently borrow from informal lenders at high interest. With guaranteed and subsidised credit, units that were previously shut can restart production.
- Niryat Disha: Upgrading Market Readiness
This component focuses on:
International fair participation
Branding and packaging support
Export-quality warehousing
Digital-first approvals and compliance
Funding for testing, certification and quality upgradation
Why this matters:
Kashmiri artisans often rely on middlemen because they lack marketing tools, compliance certifications, or knowledge of international market demands.
Niryat Disha aims to build that capacity in-house.
- Streamlining Existing Schemes Into One Platform
Currently, exporters apply separately for:
Interest Equalisation Scheme
Market Access Initiative
Transport and Marketing Assistance
DGFT trade promotion schemes
EPM will unify these under a DGFT-managed digital portal, reducing paperwork and delays.
For remote regions like Kashmir, where physical access to offices is limited, this is a major advantage.
How J&K Plans to Use EPM
The J&K Government’s draft Export Policy aligns with the Mission and sets a ₹10,000 crore export target in five years. Key strategies include:
- Sector-Specific Export Clusters
Planned clusters for:
Pashmina
Carpets and chain-stitch
Walnut and woodwork
Fruit processing
Spices and dried fruit
Herbal and wellness products
Clusters will offer shared common facilities—testing labs, packaging, e-commerce units, and cold-chain storage.
- Branding ‘Jammu & Kashmir’ as a Premium Export Origin
Expect the government to promote J&K aggressively at:
Gulf food expos
European handicraft fairs
South Asia trade events
- Expanding JKTPO’s Role
The Trade Promotion Organization is expected to become:
A coordination point for exporters
A market intelligence unit
A training and capacity-building hub
What Exporters in Kashmir Want Next
Trade bodies such as KCCI have demanded:
- Relaxed credit norms for conflict-affected geographies
Banks still hesitate to lend to businesses with past disruptions.
- Dedicated cargo flights
Without this, perishable fruit exporters lose crores annually.
- Solar incentives for MSMEs
Power shortages and high electricity bills hurt small factories.
- Revival packages for stressed units
Thousands of MSMEs became NPA through no fault of their own.
What Could Change If EPM Works as Intended
If the Mission is implemented with sensitivity to Kashmir’s reality, it could:
Re-energise handicraft exports
Reduce the cost of exporting apples and walnuts
Restore Srinagar as a cargo hub
Attract new investments into agro-processing
Revive dormant artisan clusters
Create better jobs for women in home-based crafts
Bring micro-units into formal global supply chains
Most importantly, EPM could help Kashmir recover its lost export momentum and contribute meaningfully to India’s $1 trillion export target by 2030.
