The Government of India has extended interest subvention benefits to Micro and Small Enterprises that export 167 iron and steel product lines under Chapter 72 of the ITC (HS) code. The Directorate General of Foreign Trade (DGFT) issued a trade notice detailing the move, which targets pig iron, ferro-alloys, semi-finished products and flat-rolled steel among the listed items. Medium enterprises are excluded from the scheme.

The measure forms part of a larger Rs 72.95 billion (Rs 72.95 bn) export support package announced in January, which is to be deployed over a six-year period from 2025 to 2031. The package comprises an Rs 51.81 billion (Rs 51.81 bn) interest subvention scheme and an Rs 21.14 billion (Rs 21.14 bn) collateral support fund designed to ease borrowing for exporters. Implementation details and disbursement schedules will be notified by the commerce ministry in due course.

Eligibility is limited to units classified as Micro and Small, with clear criteria for registration and export activity set out by the trade regulator. Registered units will need to follow procedural guidelines for claims and documentation under the DGFT rules. By concentrating support on the smallest manufacturers, policymakers intend to preserve operations amid global instability and rising borrowing costs.

Separately, the government revised export controls for baryte, designating Grade A and Grade B as restricted and requiring licences for shipment while keeping Grade CDW in the free category to maintain some trade flows. The changes reflect supply considerations linked to the crisis in West Asia and sectoral needs in oil drilling, paints and plastics. The regulatory tweaks combined with financing relief aim to strengthen the domestic iron and steel ecosystem and help small exporters remain competitive internationally.