Centre Rolls Out Export Credit Relief For MSMEs
ECONOMY & POLICY

Centre Rolls Out Export Credit Relief For MSMEs

The Ministry of Commerce and Industry on January 2 launched two additional components of its Export Promotion Mission, including an interest subvention scheme for pre- and post-shipment export credit under the Niryat Protsahan initiative, aimed at improving access to affordable trade finance for MSMEs.

The interest subvention scheme has a tentative outlay of Rs 51.81 billion over a six-year period from 2025 to 2031. Under the programme, eligible MSME exporters will initially receive an interest subvention of 2.75 per cent, structured as a floating rate linked to the repo rate. The ministry said additional incentives for exporters targeting new and emerging markets will be notified subsequently, reflecting the government’s focus on diversifying export destinations.

The interest benefit will apply only to selected export items included in a notified positive list, which accounts for around 75 per cent of India’s tariff lines and sectors with high MSME participation. For 2025–26, the annual benefit has been capped at Rs 5 million per Importer Exporter Code. The applicable rates will be reviewed twice a year, in March and September, based on domestic and global benchmarks. Detailed operational guidelines for the scheme will be issued by the Reserve Bank of India.

The second component under the Niryat Protsahan initiative focuses on collateral support for export credit to address financing constraints faced by MSME exporters. Under this measure, a collateral guarantee facility is being introduced in partnership with the Credit Guarantee Fund Trust for Micro and Small Enterprises.

As per the framework, guarantee coverage of up to 85 per cent will be available for micro and small exporters and up to 65 per cent for medium exporters, with a maximum outstanding guaranteed exposure of Rs 100 million per exporter in a financial year. The scheme is intended to complement existing credit guarantee mechanisms and encourage banks to expand lending to export-oriented MSMEs.

The ministry said both interventions will be implemented on a pilot basis, with continuous monitoring and data-driven refinements. Through the Export Promotion Mission, the government aims to lower export costs, expand access to finance, strengthen India’s export brand and diversify markets, enabling MSMEs to integrate more deeply into global value chains.

The initiatives form part of the broader Export Promotion Mission approved by the Union Cabinet in November 2025, with a total outlay of Rs 250.6 billion for the period from 2025–26 to 2030–31. The Mission comprises two sub-schemes: Niryat Protsahan, focused on trade finance and credit access, and Niryat Disha, which addresses non-financial enablers such as competitiveness, market access and export readiness.

The Ministry of Commerce and Industry on January 2 launched two additional components of its Export Promotion Mission, including an interest subvention scheme for pre- and post-shipment export credit under the Niryat Protsahan initiative, aimed at improving access to affordable trade finance for MSMEs. The interest subvention scheme has a tentative outlay of Rs 51.81 billion over a six-year period from 2025 to 2031. Under the programme, eligible MSME exporters will initially receive an interest subvention of 2.75 per cent, structured as a floating rate linked to the repo rate. The ministry said additional incentives for exporters targeting new and emerging markets will be notified subsequently, reflecting the government’s focus on diversifying export destinations. The interest benefit will apply only to selected export items included in a notified positive list, which accounts for around 75 per cent of India’s tariff lines and sectors with high MSME participation. For 2025–26, the annual benefit has been capped at Rs 5 million per Importer Exporter Code. The applicable rates will be reviewed twice a year, in March and September, based on domestic and global benchmarks. Detailed operational guidelines for the scheme will be issued by the Reserve Bank of India. The second component under the Niryat Protsahan initiative focuses on collateral support for export credit to address financing constraints faced by MSME exporters. Under this measure, a collateral guarantee facility is being introduced in partnership with the Credit Guarantee Fund Trust for Micro and Small Enterprises. As per the framework, guarantee coverage of up to 85 per cent will be available for micro and small exporters and up to 65 per cent for medium exporters, with a maximum outstanding guaranteed exposure of Rs 100 million per exporter in a financial year. The scheme is intended to complement existing credit guarantee mechanisms and encourage banks to expand lending to export-oriented MSMEs. The ministry said both interventions will be implemented on a pilot basis, with continuous monitoring and data-driven refinements. Through the Export Promotion Mission, the government aims to lower export costs, expand access to finance, strengthen India’s export brand and diversify markets, enabling MSMEs to integrate more deeply into global value chains. The initiatives form part of the broader Export Promotion Mission approved by the Union Cabinet in November 2025, with a total outlay of Rs 250.6 billion for the period from 2025–26 to 2030–31. The Mission comprises two sub-schemes: Niryat Protsahan, focused on trade finance and credit access, and Niryat Disha, which addresses non-financial enablers such as competitiveness, market access and export readiness.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code