Govt Unveils Rs 72.95bn Export Credit Support Package
ECONOMY & POLICY

Govt Unveils Rs 72.95bn Export Credit Support Package

The government has announced a Rs 72.95 billion export support package aimed at improving exporters’ access to credit, comprising a Rs 51.81 billion interest subvention scheme and a Rs 21.14 billion collateral support programme. Both measures will be implemented over a six-year period from 2025 to 2031.

Ajay Bhadoo, Additional Secretary in the Commerce Ministry, said the interventions are designed to address persistent trade finance challenges faced by exporters, particularly micro, small and medium enterprises (MSMEs). The interest subvention scheme, which has been resumed after a one-year gap, will provide subsidies on pre- and post-shipment export credit, helping to reduce borrowing costs.

MSME exporters currently pay between 9.5 per cent and 12.5 per cent for export credit. The subsidy is expected to improve their competitiveness at a time when global trade conditions remain challenging due to higher tariffs in key markets such as the US.

The package forms the second component of the Rs 250.6 billion Export Promotion Mission approved in November 2025. The first component, market access support with an outlay of Rs 45.31 billion, was rolled out on December 31, 2025.

Under the revised interest subvention scheme, eligible MSME exporters will receive subsidy benefits of up to 2.75 per cent. The Commerce Ministry said the rates will be reviewed twice a year in March and September, based on domestic and global benchmarks. The annual benefit will be capped at Rs 5 million per firm, although the scheme will still cover around 75 per cent of total tariff lines, or more than 12,000 product categories.

The scheme will be implemented by the Reserve Bank of India in coordination with the Directorate General of Foreign Trade. A pilot phase will be undertaken initially, with scope for refinement based on feedback. The interest subsidy will be benchmarked against India’s repo rate and comparable global policy rates, with adjustments made as interest rates change. Additional incentives will be offered to MSMEs exporting to new and emerging markets, with details to be notified separately.

Of the total Rs 51.81 billion allocation, around Rs 8.5 billion will be used in the current year to settle pending claims under the previous scheme that expired in December 2024. For the remaining quarter of the current financial year, the subsidy requirement is estimated at Rs 3 billion. The earlier scheme had provided a flat interest subsidy of 3 per cent.

Alongside this, the government has announced Rs 21.14 billion in collateral support for export credit. Under this measure, MSMEs will receive credit guarantee support for export-linked working capital loans, with collateral guarantees of up to Rs 100 million per firm. 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.

According to the DGFT, both the interest subvention and collateral support will apply only to exports from a selected positive list of products, including defence and SCOMET items. Restricted goods, waste and scrap, and products covered under production-linked incentive schemes will be excluded.

The collateral support framework will be implemented through the Credit Guarantee Fund Trust for Micro and Small Enterprises, beginning with a pilot phase before being integrated into a broader revision of export promotion mechanisms.

Welcoming the measures, the Federation of Indian Export Organisations said the twin interventions under the Niryat Protsahan sub-scheme would significantly strengthen MSME exports by addressing high borrowing costs and collateral constraints. FIEO President SC Ralhan said the initiatives would encourage banks to expand lending to export-oriented MSMEs and enhance their competitiveness in global markets, adding that both schemes would be closely monitored and refined during the pilot phase.

The government has announced a Rs 72.95 billion export support package aimed at improving exporters’ access to credit, comprising a Rs 51.81 billion interest subvention scheme and a Rs 21.14 billion collateral support programme. Both measures will be implemented over a six-year period from 2025 to 2031. Ajay Bhadoo, Additional Secretary in the Commerce Ministry, said the interventions are designed to address persistent trade finance challenges faced by exporters, particularly micro, small and medium enterprises (MSMEs). The interest subvention scheme, which has been resumed after a one-year gap, will provide subsidies on pre- and post-shipment export credit, helping to reduce borrowing costs. MSME exporters currently pay between 9.5 per cent and 12.5 per cent for export credit. The subsidy is expected to improve their competitiveness at a time when global trade conditions remain challenging due to higher tariffs in key markets such as the US. The package forms the second component of the Rs 250.6 billion Export Promotion Mission approved in November 2025. The first component, market access support with an outlay of Rs 45.31 billion, was rolled out on December 31, 2025. Under the revised interest subvention scheme, eligible MSME exporters will receive subsidy benefits of up to 2.75 per cent. The Commerce Ministry said the rates will be reviewed twice a year in March and September, based on domestic and global benchmarks. The annual benefit will be capped at Rs 5 million per firm, although the scheme will still cover around 75 per cent of total tariff lines, or more than 12,000 product categories. The scheme will be implemented by the Reserve Bank of India in coordination with the Directorate General of Foreign Trade. A pilot phase will be undertaken initially, with scope for refinement based on feedback. The interest subsidy will be benchmarked against India’s repo rate and comparable global policy rates, with adjustments made as interest rates change. Additional incentives will be offered to MSMEs exporting to new and emerging markets, with details to be notified separately. Of the total Rs 51.81 billion allocation, around Rs 8.5 billion will be used in the current year to settle pending claims under the previous scheme that expired in December 2024. For the remaining quarter of the current financial year, the subsidy requirement is estimated at Rs 3 billion. The earlier scheme had provided a flat interest subsidy of 3 per cent. Alongside this, the government has announced Rs 21.14 billion in collateral support for export credit. Under this measure, MSMEs will receive credit guarantee support for export-linked working capital loans, with collateral guarantees of up to Rs 100 million per firm. 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. According to the DGFT, both the interest subvention and collateral support will apply only to exports from a selected positive list of products, including defence and SCOMET items. Restricted goods, waste and scrap, and products covered under production-linked incentive schemes will be excluded. The collateral support framework will be implemented through the Credit Guarantee Fund Trust for Micro and Small Enterprises, beginning with a pilot phase before being integrated into a broader revision of export promotion mechanisms. Welcoming the measures, the Federation of Indian Export Organisations said the twin interventions under the Niryat Protsahan sub-scheme would significantly strengthen MSME exports by addressing high borrowing costs and collateral constraints. FIEO President SC Ralhan said the initiatives would encourage banks to expand lending to export-oriented MSMEs and enhance their competitiveness in global markets, adding that both schemes would be closely monitored and refined during the pilot phase.

Next Story
Infrastructure Urban

Panasonic Showcases Connected Display Solutions

Panasonic Life Solutions India showcased its integrated display, projection, broadcast and communication technologies at Panasonic Tech Summit 2026 in New Delhi. Hosted through its System Solutions Division, the two-day event highlighted connected technology solutions for education, healthcare, retail, transportation, corporate offices and entertainment.The summit, themed ‘Turning Technology into Value’, featured experience-led zones covering QSR, retail, transit, corporate offices, healthcare, education, security, projection, home theatre and professional displays. Panasonic also introduc..

Next Story
Infrastructure Transport

Kapsch to Deliver India’s First C-ITS Project

"Kapsch TrafficCom will deliver India’s first Cooperative Intelligent Transport Systems project on a key expressway near New Delhi. The project will be implemented with Superwave Communication And Infrasolution Limited to demonstrate how connected mobility can improve road safety and traffic efficiency.The pilot will use real-time connectivity and AI-enabled situational awareness to support road users, especially in high-risk areas such as temporary work zones. Drivers will receive alerts on roadworks, maintenance vehicles, hazardous locations, traffic queues and temporary virtual signage di..

Next Story
Infrastructure Urban

Eurobond Net Profit Rises 44 Per Cent

Euro Panel Products, the parent company of Eurobond, reported a 44.13 per cent year-on-year rise in net profit for FY25–26. The company’s revenue from operations grew 18.91 per cent to Rs 503.20 crore, compared to Rs 423.18 crore in the previous financial year.The company’s full-year EBITDA stood at Rs 56.67 crore, marking a 31.82 per cent increase. Profit after tax rose to Rs 26.56 crore, while net worth increased 20.15 per cent to Rs 160.07 crore. Earnings per share for the year stood at Rs 10.84.Divyam Rajesh Shah, Whole Time Director and CFO, Euro Panel Products, said the company’s..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

-->