Union Budget 2025: Can The Export Promotion Mission Begin A New Era For D2C Brands?

Union Budget 2025: Can The Export Promotion Mission Begin A New Era For D2C Brands?

SUMMARY

The Export Promotion Mission, to be driven jointly by the commerce, MSME and finance ministries, will facilitate easy access to export credit, provide cross-border factory support, and help MSMEs tackle non-tariff measures in overseas markets

As India's D2C market accelerates toward a projected $300 Bn opportunities by 2030, the newly launched Export Promotion Mission could play a pivotal role in facilitating global expansion for Indian D2C brands

While the success of this initiative will depend on its execution, experts are hopeful that India’s D2C sector has the potential to become a global leader if the mission delivers on its promises

In a major boost to the country’s export sector, finance minister Nirmala Sitharaman, during her eighth consecutive Union Budget speech on February 1, announced establishing an Export Promotion Mission to be driven jointly by the commerce, MSME and finance ministries.

“We will set up an Export Promotion Mission, with sectoral and ministerial targets, driven jointly by the Ministries of Commerce, MSME, and Finance. It will facilitate easy access to export credit, cross-border factoring support, and support to MSMEs to tackle non-tariff measures in overseas markets,” the minister said, emphasising that exports are the fourth growth engine.

According to the Union minister, this mission will facilitate easy access to export credit, provide cross-border factory support, and help MSMEs tackle non-tariff measures in overseas markets.

To further boost global trade, Sitharaman also announced a digital public infrastructure, ‘BharatTradeNet’ (BTN), for international trade. This will be a unified platform for trade documentation and financing solutions and complement the Unified Logistics Interface Platform.

The minister on Saturday announced the establishment of this mission with an outlay of INR 2,250 Cr to boost the country’s outbound shipments.

According to the Economic Survey 2024-25, India’s total exports, including merchandise and services, recorded a steady 6% growth in the first nine months of FY25, reaching $602.6 Bn. 

Services and goods exports, excluding petroleum, gems, and jewellery, grew by 10.4%. However, some sectors saw a slight moderation in export growth compared to the same period in FY24.

In the first nine months of FY25, India’s total exports, including merchandise and services, grew by 6%, reaching $602.6 Bn. Exports of services and goods, excluding petroleum and gems and jewellery, saw a 10.4% rise, according to the Economic Survey 2024-25.

“The Export Promotion Mission is a strong step towards making India’s brands globally competitive, and we believe this government has the vision and capability to make it a success,” said Anchit Kapil, cofounder of the D2C platform CDC.

This initiative by the government is also expected to provide a significant boost to India’s D2C sector, particularly for brands that are aiming to expand internationally, many experts told Inc42. 

But before we delve into it, let’s look at the sectors benefiting from Sitharaman’s sector-specific support to boost India’s export growth.

Sector-Specific Support In Export Promotion Mission

During her budget speech, Sitharaman outlined the government’s focus on sector-specific support to enhance the growth of India’s export sectors. 

Some of the sectors benefiting from this mission include handicrafts, leather, marine products, and railway goods, with targeted measures to enhance their export potential. 

Handicrafts: The government has extended the export period from six months to one year, with an additional three-month extension, and has added nine new items to the duty-free inputs list.

Leather Industry: Basic customs duty (BCD) on wet blue leather has been fully exempted to facilitate domestic value addition, while crust leather has been exempted from the 20% export duty to support small tanners.

Marine Products: The BCD on frozen fish paste (Surimi) has been reduced from 30% to 5%, and the BCD on fish hydrolysate has been lowered from 15% to 5% to boost seafood exports.

Railway Goods: The time limit for the export of foreign-origin goods imported for repairs has been extended from six months to one year, with an additional one-year extension.

So, What Does This Mean For D2C Brands?

As India’s direct-to-consumer (D2C) market accelerates toward a projected $300 Bn opportunity by 2030, the newly launched Export Promotion Mission could play a pivotal role in facilitating global expansion for Indian D2C brands. 

With more Indian brands looking to expand globally and the country’s digital shopper base reaching over 190 Mn, the mission’s cross-border support and sector-specific measures could help ease the challenges of international trade. 

Vidita Kochar, cofounder of Jewelbox, emphasised that with sectoral and ministerial targets, the initiative could simplify regulatory processes and offer stronger support for brands looking to expand globally. “The gems and jewellery sector, a significant contributor to exports, will particularly benefit from this move,” Kochar said.

She added that support from the ministries of commerce, MSME, and finance could provide better funding, incentives, and reduced export barriers, which is crucial as Indian D2C brands continue to make their mark internationally.

Another reason why this mission can be helpful for the D2C brands is particularly because these startups often face challenges in accessing capital and navigating complex international regulations. Hence, by streamlining these processes, the mission could help D2C brands expand globally, making it easier for them to scale their operations and reach new markets.

Kapil, the cofounder of a streetwear aggregation and sneaker reselling platform, Crepdog Crew, said, “For India’s D2C sector, this initiative could be a game-changer, especially with the right focus on export infrastructure, streamlined regulatory processes, and global market positioning. We are already experiencing massive international demand, and this initiative could accelerate our global expansion plans.”

According to Prateek Singhal, the cofounder of D2C footwear brand Yoho, while Indian D2C startups have large audiences abroad, they often lack the teams and budgets to navigate the complexities of compliance and export processes. He said that appropriate government interventions can help them navigate these challenges. 

“If the government chooses to step in, it could also assist D2C brands in understanding the cultural nuances of other markets, as branding and communication play a critical role for D2C success,” the Yoho cofounder added.

According to Singhal, the footwear industry in India has significant potential for exports. Currently, India exports just $3 Bn worth of footwear, falling far behind China, which exports around $70 Bn, and even countries like Bangladesh and Vietnam. 

While domestic production is one factor, another key challenge according to him is the lack of reliable demand and payment from importing countries. Export policies that address financing volatility and provide certifications to improve importer credibility would greatly benefit the sector, he added.

Making India A Global D2C Powerhouse 

Indian D2C brands face various challenges in expanding globally, including logistics, compliance, and market adaptability. According to Ashish Gala, cofounder of VC firm VentureSoul Partners, India’s next growth strategy should focus on “India for World”.

“Complementing domestic consumption with a focussed sector-specific export initiative will provide a massive boost to MSMEs, many of whom could become global leaders. India has already proven its strength in services, and now it’s time for manufacturing to take the lead,” he said.

Many industry leaders Inc42 spoke with are optimistic that the Export Promotion Mission, along with BTN, can make a significant impact on India’s export-driven growth. These initiatives have the scope to streamline export processes, improve access to financing, and provide sector-specific support that could elevate Indian D2C brands on the global stage.

“The Export Promotion Mission and BTN will enhance international trade competitiveness, ensuring MSMEs benefit from improved access to export credit, cross-border financing, and streamlined documentation, further positioning India as a powerhouse,” said Nishant Arya, vice chairman & MD, JBM Auto Ltd.

He added that the initiative combined with targeted support for branding, marketing, and logistics could transform the global D2C landscape.

While the success of this initiative will depend on its execution, experts are hopeful that India’s D2C sector has the potential to become a global leader if the mission delivers on its promises. 

[Edited By Shishir Parasher]

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