Content

1. India’s Solar Momentum
2. Export Promotion Mission

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India’s Solar Momentum

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Why in News  ?

• India’s solar capacity touched ~129 GW, up from 3 GW in 2014 (over 40× growth in 11 years).
• Non-fossil installed power capacity crossed 50% of India’s total ~500 GW electricity capacity five years ahead of the 2030 target.
• Massive scale-up recorded under PM Surya Ghar, PM-KUSUM, Solar Parks, and PLI for Solar PV Manufacturing.
• 8th Assembly of the International Solar Alliance (ISA) hosted by India in Oct 2025, reinforcing India’s global solar leadership.

Relevance

GS II (Governance, International Relations)

• Climate diplomacy leadership via International Solar Alliance
• South–South cooperation through solar finance & capacity building
• Federal cooperation in renewable energy deployment
• Energy as a tool of strategic diplomacy (OSOWOG grid vision)

GS III (Economy, Infrastructure, Energy, Environment)

• Energy security: Reduced fossil fuel import dependence
• Infrastructure: Grid integration at high RE penetration
• Industrial policy: PLI for Solar PV Manufacturing
• Agriculture: Solar pumps under PM-KUSUM
• Circular economy: Solar panel recycling challenge

Why Solar Matters for India ?

• India is:
  • 3rd largest energy consumer globally
  • Among the top 3 CO₂ emitters, though per capita emissions remain low
• Solar power addresses:
  • Energy security (reduces fossil fuel imports)
  • Climate mitigation (zero operational emissions)
  • Rural electrification
  • Job creation & manufacturing growth
• High natural advantage:
  • 300+ sunny days/year
  • 4–7 kWh/m²/day solar radiation
• Strategic shift from coal-dominant mix → renewables-led grid

Solar Capacity Growth: Structural Transformation

• 2014: 3 GW
• Oct 2025: ~129 GW
• Growth rate: Over 40-fold increase
• Now largest contributor to renewable energy, ahead of wind & biomass
• Share in India’s renewable mix:
  • Solar now forms ~50%+ of total RE capacity
• Impact:
  • Reduced long-term power costs
  • Improved grid diversification
  • Lower exposure to global fuel price shocks

Non-Fossil Power Milestone

• Non-fossil installed capacity: ~259 GW
• Total national capacity: ~500 GW
• Result: >50% electricity capacity from non-fossil
• Covers:
  • Solar
  • Wind
  • Hydro
  • Nuclear
  • Biomass
• India achieved its 2030 climate electricity mix target in 2025 itself

Global Standing in Renewables (2025)

• As per IRENA Renewable Energy Statistics 2025:
  • 3rd in solar capacity
  • 4th in wind power
  • 4th in total renewable installed capacity
• Implication:
  • India is now a system-shaper, not just a follower, in global clean energy markets

Policy Anchor: Panchamrit at COP26

Announced at COP26, 2021

Five Pillars:

• 500 GW non-fossil capacity by 2030
• 50% power capacity from non-fossil by 2030 (already achieved)
• 1 billion tonne CO₂ emission reduction by 2030
• 45% reduction in carbon intensity vs 2005
• Net Zero by 2070

Function:

• Aligns energy policy, industry, transport, urban planning with climate goals

Key Government Programmes Powering Solar Expansion

A. PM Surya Ghar (Rooftop Solar Revolution)

• Launch: Feb 2024
• Outlay: ₹75,021 crore
• Target: 1 crore households
• Benefit: Up to 300 free electricity units/month
• Status (Dec 2025):
  • 23.9 lakh homes covered
  • 7 GW rooftop capacity installed
  • ₹13,464.6 crore subsidy released
• Impact:
  • Direct household cost savings
  • Decentralised energy generation
  • Urban & semi-urban grid decongestion

B. National Solar Mission (2010)

• Technology-wise deployment:
  • Ground-mounted: 98.72 GW
  • Rooftop: 22.42 GW
  • Hybrid (solar share): 3.32 GW
  • Off-grid: 5.45 GW
• Strategic value:
  • Enabled India’s utility-scale solar parks
  • Drove tariff discovery through reverse bidding

C. PLI Scheme for Solar PV Manufacturing

• Implemented by Ministry of New and Renewable Energy
• Outlay: ₹24,000 crore (Tranche I & II)
• Manufacturing capacity awarded: ~48.3 GW
• Investments attracted (Sept 2025): ₹52,900 crore
• Jobs generated: ~44,400
• Significance:
  • Reduces import dependence on China
  • Builds end-to-end domestic solar supply chain
  • Supports Atmanirbhar Bharat in clean tech

D. PM-KUSUM (Solarisation of Agriculture)

• Launched: 2019
• Components:
  • A: Grid-connected solar plants on fallow land
  • B: Standalone solar pumps
  • C: Solarisation of grid-connected pumps
• Status (Oct 2025):
  • ~9.2 lakh standalone solar pumps (B)
  • 10,535 grid solarised pumps (C)
  • 9.74 lakh feeder-level solarised pumps
• Subsidy:
  • 30–50% CFA up to 15 HP pumps
• Impacts:
  • Cuts diesel subsidy
  • Boosts farm incomes
  • Supports daytime irrigation

E. Solar Parks & Ultra Mega Solar Projects

• Launched: 2014
• Target enhanced: 20 GW → 40 GW
• Status (Oct 2025):
  • 55 solar parks
  • 39.97 GW sanctioned
  • 14.92 GW already commissioned
• Benefits:
  • Common infrastructure
  • Faster land acquisition
  • Lower project risks
• Extended till March 2029

India’s Global Solar Diplomacy

International Solar Alliance (ISA)

• Co-founded by India & France
• HQ: Gurugram
• 125+ member countries
• Functions:
  • Solar finance mobilisation
  • Technology transfer
  • Capacity building
  • Global risk mitigation

8th ISA Assembly (Oct 2025, New Delhi)

• 550+ delegates, 30+ ministers
• Focus areas:
  • Resilient solar value chains
  • Inclusive solar access
  • Job creation & women leadership
  • OSOWOG grid integration

One Sun, One World, One Grid (OSOWOG)

• Proposed by India (2018)
• Vision:
  • Global renewable power interconnection
  • Solar trading across time zones
• Strategic outcome:
  • Enhances energy security
  • Cuts global storage costs
  • Positions India as a transnational grid leader

Strategic Significance of India’s Solar Surge

• Economic
  • Lower power tariffs
  • Reduced fossil fuel imports
  • Manufacturing-led green growth
• Environmental
  • Emission intensity reduction
  • Coal displacement
• Social
  • Rural electrification
  • Farmer income diversification
• Geopolitical
  • Leadership in climate diplomacy
  • South–South solar cooperation via ISA

Critical Challenges Ahead

• Intermittency & storage adequacy
• Grid balancing at high RE penetration
• Land conflicts in ultra-mega parks
• Recycling & end-of-life solar panels
• Dependence on imported critical minerals

Conclusion: What This Milestone Really Means

• India is no longer just adding renewables—it is:
  • Restructuring its entire power system
  • Indigenising clean-tech manufacturing
  • Exporting solar governance models globally
• Crossing 50% non-fossil power capacity in 2025 marks:
  • A historic energy transition point
  • A firm foundation towards 500 GW by 2030 & Net Zero by 2070

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Export Promotion Mission

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 Why in News  ?

• Government approved the Export Promotion Mission (EPM) with an outlay of ₹25,060 crore (FY 2025–26 to FY 2030–31).
• Launch announced in Union Budget 2025–26 as a single, unified, digital export-support framework.
• Implemented through Directorate General of Foreign Trade (DGFT).
• Backed by:
  • ₹20,000 crore Credit Guarantee Scheme for Exporters
  • Major regulatory relief by Reserve Bank of India (RBI) amid global trade disruptions.
• Special focus on MSMEs, labour-intensive sectors, tariff-hit sectors and low-export districts.

Relevance

GS II (Governance, Polity, Federalism)

• Mission-mode governance replacing fragmented schemes
• Digital governance through DGFT’s unified export platform
• Cooperative federalism via district export promotion
• Role of RBI in economic stabilization
• Centre–State coordination in trade facilitation

GS III (Economy, Trade, MSME, Banking)

• Export-led growth strategy
• MSME credit access via ₹20,000 crore credit guarantee
• Trade finance reforms & interest subvention
• Logistics cost reduction for interior districts
• Global value chain integration

Why Exports Matter for India ?

• Exports drive:
  • Manufacturing growth
  • MSME employment
  • Foreign exchange stability
  • Global value-chain integration
• Key structural issues earlier:
  • Fragmented export schemes
  • High cost of trade finance
  • Logistics disadvantages in interior districts
  • Weak branding & standards compliance among MSMEs
• EPM responds to the need for:
  • Unified governance
  • Digitally delivered incentives
  • Outcome-based export promotion

What is Export Promotion Mission (EPM)?

• A national, mission-mode export reform framework
• Outlay: ₹25,060 crore (6 years)
• Coverage:
  • Merchandise exports
  • Services exports
• Objective:
  • Strengthen finance, market access, standards, branding, and district-level participation
• Replaces: Multiple fragmented export-support schemes with one integrated digital architecture

Policy Rationale: Why a Mission Approach?

• Earlier ecosystem suffered from:
  • Overlapping schemes
  • Slow approvals
  • Weak inter-ministerial coordination
• EPM focuses on:
  • Affordable trade finance
  • Export-quality certification & standards
  • Market access & branding
  • Logistics rebates for interior exporters
• Designed as:
  • Adaptive to global trade shocks
  • Digitally monitored
  • Outcome-linked

Institutional Structure & Governance

• Nodal Implementing Agency: DGFT
• Key Stakeholders:
  • Department of Commerce
  • Ministry of MSME
  • Ministry of Finance
  • Export Promotion Councils
  • Commodity Boards
  • Financial institutions
  • State Governments
• Digital Backbone:
  • End-to-end processing
  • Application → Approval → Disbursal
  • Integration with customs & trade systems
• Governance Model:
  • Inter-ministerial coordination
  • State partnership
  • Data-driven monitoring

Two Core Sub-Schemes Under EPM

A. Niryat Protsahan – Financial Enablers

Targets export financing constraints, especially for MSMEs.

Key Instruments:

• Interest subvention on:
  • Pre-shipment credit
  • Post-shipment credit
• Export factoring
• Deep-tier financing
• Credit cards for e-commerce exporters
• Collateral support for export loans
• Credit enhancement for:
  • New exporters
  • High-risk markets

Impact:

• Lowers cost of capital
• Expands credit access
• Encourages first-time exporters

B. Niryat Disha – Non-Financial Enablers

Targets market-readiness and competitiveness.

Key Supports:

• Testing, certification & compliance
• International branding & packaging
• Trade fairs, expos & buyer-seller meets
• Export warehousing & logistics
• Inland transport reimbursement (for remote districts)
• Cluster-level & district export facilitation

Impact:

• Bridges quality and branding gap
• Integrates Indian MSMEs into global market standards
• Expands exports from non-coastal and low-export districts

Sectoral & Regional Focus

• Priority sectors:
  • Textiles
  • Leather
  • Gems & Jewellery
  • Engineering goods
  • Marine products
• Target groups:
  • MSMEs
  • First-time exporters
  • Labour-intensive industries
• Regional thrust:
  • Interior districts
  • Low-export-intensity regions
• Strategic intent:
  • Geographic diversification of exports
  • Reduce coastal concentration

Credit Guarantee Scheme for Exporters (CGSE)

• Approved alongside EPM
• Additional credit support: ₹20,000 crore
• Implemented by:
  • Department of Financial Services (DFS)
  • National Credit Guarantee Trustee Company Limited (NCGTC)
• Features:
  • 100% Government of India guarantee
  • Collateral-free export credit
  • Additional working capital up to 20% of sanctioned limits
• Valid till 31 March 2026
• Objective:
  • Liquidity assurance
  • Market expansion support
  • Risk mitigation for lenders

RBI Regulatory & Liquidity Support (Nov 2025)

Issued as “Trade Relief Measures Directions, 2025”

(i) Moratorium on Repayments

• Applicable: 1 Sept – 31 Dec 2025
• Simple interest, no compounding
• Interest convertible into Funded Interest Term Loan (FITL)

(ii) Export Credit Tenure Extension

• Pre & post-shipment credit tenure extended to 450 days
• Applies to credit disbursed up to 31 March 2026

(iii) Working-Capital Flexibility

• Drawing power recalculation
• Margin reduction & reassessment permitted

(iv) Regulatory Forbearance

• Relief period excluded from DPD
• Not treated as restructuring
• No adverse impact on credit bureau records

(v) Provisioning Requirement

• Minimum 5% general provision on eligible standard accounts

(vi) FEMA Relaxations

• Export realisation period extended 9 → 15 months
• Advance payment shipment window extended 1 → 3 years

Macro Impact:

• Prevents NPA stress
• Preserves export liquidity
• Stabilises trade during global slowdown

Digital Implementation & Monitoring

• DGFT operates:
  • Unified exporter database
  • Automated approvals
  • Scheme-wise benefit tracking
• Features:
  • Paperless processing
  • Real-time monitoring
  • Outcome-based fund release
• Policy Advantage:
  • Reduces transaction cost
  • Improves transparency
  • Speeds up exporter onboarding

Expected Outcomes of EPM

• Improved access to affordable export finance
• Higher compliance readiness for global standards
• Enhanced branding & international visibility
• Increased exports from:
  • Non-traditional districts
  • First-time exporters
• Employment generation in:
  • Manufacturing
  • Logistics
  • Services
• Supports:
  • Atmanirbhar Bharat
  • Export-led growth model
  • Viksit Bharat @ 2047 vision

Strategic Significance

• Converts India’s export policy from:
  • Fragmented schemes → Mission-mode governance
• Strengthens:
  • Trade finance ecosystem
  • MSME global integration
  • District-level export capacity
• Aligns with:
  • Industrial corridor development
  • Gati Shakti logistics reforms
  • Digital public infrastructure

Key Risks & Challenges

• Global demand slowdown
• Tariff protectionism in developed markets
• MSME compliance cost burden
• Logistics bottlenecks in remote districts
• Banking risk aversion despite guarantees

Conclusion  

• The Export Promotion Mission (EPM) represents a structural reform in India’s export governance.
• By integrating:
  • Digital delivery (DGFT)
  • Credit guarantees (NCGTC)
  • Monetary relief (RBI)
  • Financial & non-financial enablers (Niryat Protsahan & Disha)
• It creates a whole-of-government export ecosystem focused on:
  • MSME empowerment
  • Market diversification
  • Trade resilience
• EPM operationalises India’s shift towards technology-driven, inclusive and globally competitive exports.