Centre Rolls Out Rs 72.95 Billion MSME Export Finance Push

07 Jan 2026 CW Team

A key pillar of the initiative is the Interest Subvention for Pre- and Post-Shipment Rupee Export Credit scheme, with an outlay of about Rs 51.81 billion over six years. The scheme is designed to help MSME exporters access rupee-denominated working capital at rates below prevailing market interest levels. An initial provision will also be used to clear arrears of around Rs 8.3 billion.

Under the scheme, a base interest subvention of 2.75 per cent has been announced, with additional incentives proposed for exports to under-represented or emerging markets, subject to operational readiness. The annual benefit has been capped at Rs 5 million per exporter, and the scheme will cover around 75 per cent of India’s tariff lines. Operational guidelines will be issued by the Reserve Bank of India and the Directorate General of Foreign Trade.

The government has also unveiled a collateral support scheme for export credit with an outlay of Rs 21.14 billion. The scheme aims to provide credit guarantee support for export-linked working capital loans to MSMEs, addressing collateral constraints and encouraging banks to increase lending.

Under this framework, exporters can access collateral guarantees of up to Rs 100 million per firm. Guarantee coverage will extend up to 85 per cent for micro and small exporters and up to 65 per cent for medium enterprises. Detailed guidelines will be notified by the Credit Guarantee Fund Trust for Micro and Small Enterprises, beginning with a pilot phase before wider rollout.

The export finance schemes represent the second major component of the government’s broader export strategy. They follow the launch of the Rs 45.31 billion Market Access Support scheme on 31 December 2025, which focuses on helping exporters enter new international markets and diversify product offerings.

Together, the measures are intended to address persistent trade finance challenges faced by MSME exporters, particularly amid ongoing global economic uncertainty.

The central government has launched export finance support schemes worth Rs 72.95 billion to improve access to trade credit for micro, small and medium exporters over the six-year period from FY26 to FY31, officials said. The measures form part of the Export Promotion Mission approved by the Union Cabinet in November 2025. A key pillar of the initiative is the Interest Subvention for Pre- and Post-Shipment Rupee Export Credit scheme, with an outlay of about Rs 51.81 billion over six years. The scheme is designed to help MSME exporters access rupee-denominated working capital at rates below prevailing market interest levels. An initial provision will also be used to clear arrears of around Rs 8.3 billion. Under the scheme, a base interest subvention of 2.75 per cent has been announced, with additional incentives proposed for exports to under-represented or emerging markets, subject to operational readiness. The annual benefit has been capped at Rs 5 million per exporter, and the scheme will cover around 75 per cent of India’s tariff lines. Operational guidelines will be issued by the Reserve Bank of India and the Directorate General of Foreign Trade. The government has also unveiled a collateral support scheme for export credit with an outlay of Rs 21.14 billion. The scheme aims to provide credit guarantee support for export-linked working capital loans to MSMEs, addressing collateral constraints and encouraging banks to increase lending. Under this framework, exporters can access collateral guarantees of up to Rs 100 million per firm. Guarantee coverage will extend up to 85 per cent for micro and small exporters and up to 65 per cent for medium enterprises. Detailed guidelines will be notified by the Credit Guarantee Fund Trust for Micro and Small Enterprises, beginning with a pilot phase before wider rollout. The export finance schemes represent the second major component of the government’s broader export strategy. They follow the launch of the Rs 45.31 billion Market Access Support scheme on 31 December 2025, which focuses on helping exporters enter new international markets and diversify product offerings. Together, the measures are intended to address persistent trade finance challenges faced by MSME exporters, particularly amid ongoing global economic uncertainty.

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