MSME Exports Get Boost with Two New Trade Finance Measures

05 Jan 2026 CW Team

The first intervention introduces interest support for pre- and post-shipment export credit to reduce borrowing costs and ease working-capital constraints for MSME exporters. A base interest subvention of 2.75 per cent will be provided on eligible rupee export credit, with a provision for additional incentives for exports to notified under-represented or emerging markets, subject to operational readiness.

This benefit will apply only to exports covered under a notified positive list of Harmonised System six-digit tariff lines, accounting for around 75 per cent of India’s tariff lines with high MSME participation. An exporter-wise annual cap of Rs 5 million per Importer Exporter Code has been prescribed for FY 2025–26, with rates to be reviewed bi-annually in March and September. Detailed operational guidelines will be issued by the Reserve Bank of India, and the scheme will be implemented initially on a pilot basis.

The second intervention focuses on collateral support for export credit to address financing constraints faced by MSMEs. Under this measure, a collateral guarantee for export credit is being introduced in partnership with the Credit Guarantee Fund Trust for Micro and Small Enterprises. 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 guaranteed exposure of Rs 100 million per exporter per financial year.

The two measures will be implemented on a pilot basis with continuous monitoring and data-driven refinements. Through the Export Promotion Mission, jointly implemented by the Department of Commerce, the Ministry of MSME and the Ministry of Finance, the government aims to lower export costs, expand access to finance, diversify markets and strengthen India’s export competitiveness, particularly for MSMEs.

Recently, the Government of India rolled out two key interventions under the NIRYAT PROTSAHAN sub-scheme as part of the Export Promotion Mission, aimed at strengthening MSME exports and improving access to trade finance. The first intervention introduces interest support for pre- and post-shipment export credit to reduce borrowing costs and ease working-capital constraints for MSME exporters. A base interest subvention of 2.75 per cent will be provided on eligible rupee export credit, with a provision for additional incentives for exports to notified under-represented or emerging markets, subject to operational readiness. This benefit will apply only to exports covered under a notified positive list of Harmonised System six-digit tariff lines, accounting for around 75 per cent of India’s tariff lines with high MSME participation. An exporter-wise annual cap of Rs 5 million per Importer Exporter Code has been prescribed for FY 2025–26, with rates to be reviewed bi-annually in March and September. Detailed operational guidelines will be issued by the Reserve Bank of India, and the scheme will be implemented initially on a pilot basis. The second intervention focuses on collateral support for export credit to address financing constraints faced by MSMEs. Under this measure, a collateral guarantee for export credit is being introduced in partnership with the Credit Guarantee Fund Trust for Micro and Small Enterprises. 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 guaranteed exposure of Rs 100 million per exporter per financial year. The two measures will be implemented on a pilot basis with continuous monitoring and data-driven refinements. Through the Export Promotion Mission, jointly implemented by the Department of Commerce, the Ministry of MSME and the Ministry of Finance, the government aims to lower export costs, expand access to finance, diversify markets and strengthen India’s export competitiveness, particularly for MSMEs.

Real Estate

28 Feb 2026

Casagrand Launches Keystone In Tiruppur

Casagrand has launched Casagrand Keystone, a gated residential development at Rakkiyapalayam, off Avinashi Road, in Tiruppur. Spread across 2.2 acres, the B+G+5 structure comprises 142 units of 2 and 3 BHK homes, supported by 48 indoor and outdoor amenities. The project is introduced at a starting price of Rs 5,199 per sq. ft. The development allocates 1.3 acres to open space, including a central park of about 24,500 sq. ft. A 6,800 sq. ft. clubhouse includes a multipurpose hall, mini theatre and indoor recreation facilities. Other amenities include a 5,100 sq. ft. swimming pool, poolside par..

Real Estate

28 Feb 2026

Premium homes account for half of India’s housing sales in 2025

Knight Frank India, in its latest report on India’s office and residential property market, has highlighted a significant shift in housing demand, with homes priced above Rs 10 million accounting for 50 per cent of total residential sales across the top eight cities in 2025. The findings underscore the growing dominance of premium housing in the country’s real estate landscape.Out of 348,247 residential units sold during the year, approximately 175,091 units were in the Rs 10 million-plus category, marking a 14 per cent year-on-year increase. The data reflects changing buyer preferences, w..

Infrastructure Energy

28 Feb 2026

Xbattery launches XB-5K energy storage system for homes, offices

Xbattery, a Hyderabad-based deep-tech company specialising in next-generation energy storage and battery management technologies, has introduced its flagship XB-5K, a scalable 5kWh energy storage system designed for homes and offices in India.The XB-5K is built on the company’s indigenously developed BharatBMS platform, described as India’s first universal high-voltage battery management system architecture aimed at reducing import dependence and improving after-sales service capabilities. The launch comes as India seeks to strengthen domestic manufacturing and address reliance on imported..