As part of the initial rollout of the Export Promotion Mission, the Centre has launched two key interventions under the Niryat Protsahan sub-scheme to strengthen micro, small and medium enterprise (MSME) exports by improving access to affordable trade finance, the Commerce Ministry said on Friday.
The first intervention introduces an interest subvention on pre- and post-shipment export credit, aimed at lowering borrowing costs and easing working capital constraints for MSME exporters. Under the scheme, a base interest subvention of 2.75 per cent will be provided on eligible rupee export credit extended by authorised lending institutions. An additional incentive may be offered for exports to notified under-represented or emerging markets, subject to operational readiness.
The benefit will apply only to exports covered under a notified positive list of tariff lines at the HS six-digit level, which accounts for around 75 per cent of India’s tariff lines and reflects high MSME participation. An exporter-wise annual cap of ₹50 lakh per firm has been set for FY 2025–26. The interest subvention rates will be reviewed twice a year, in March and September, in line with domestic and global benchmarks.
According to the ministry, the positive list has been prepared using a transparent, data-driven methodology, prioritising labour-intensive and capital-intensive sectors, MSME concentration and value addition. Restricted and prohibited items, waste and scrap, and products covered under overlapping incentive schemes have been excluded, while defence and SCOMET-notified items have been included to support strategic exports. The Reserve Bank of India will issue detailed operational guidelines, and the scheme will be rolled out on a pilot basis.
The second intervention focuses on collateral support for export credit to address financing constraints faced by MSME exporters. Under this measure, the government will provide collateral guarantee support in partnership with the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
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 ₹10 crore per exporter in a financial year. The initiative is expected to complement existing credit guarantee mechanisms and encourage banks to step up lending to export-oriented MSMEs. Detailed guidelines will be notified by CGTMSE, followed by a pilot phase.
Both interventions will be implemented initially on a pilot basis, with continuous monitoring and scope for data-driven refinements.
The measures are part of the broader Export Promotion Mission, a flagship initiative approved by the Union Cabinet on November 12, 2025, with a total outlay of ₹25,060 crore for FY 2025–26 to FY 2030–31. The Mission aims to lower the cost of exporting, expand access to finance, strengthen India’s export brand and diversify markets, with a special focus on MSMEs, first-time exporters and labour-intensive sectors.
The Export Promotion Mission is jointly implemented by the Department of Commerce, the Ministry of MSME and the Ministry of Finance, and is structured around two sub-schemes — Niryat Protsahan, which addresses trade finance constraints, and Niryat Disha, which supports non-financial enablers such as market access, branding, regulatory compliance, logistics and trade intelligence.
