The Centre has approved a ₹7,295 crore (about $810 million) export support package to improve exporters’ access to trade finance, with a strong focus on micro, small and medium enterprises (MSMEs). The package will be implemented over six years, from 2025 to 2031, under the Niryat Protsahan sub-scheme, the commerce ministry said.
Of the total outlay, ₹5,181 crore ($575 million) has been earmarked for an interest subvention scheme on export credit, while ₹2,114 crore ($234 million) will be used to provide collateral support to MSME exporters.
The first intervention provides interest subvention on eligible rupee-denominated pre- and post-shipment export credit extended by approved lending institutions. A base interest subvention of 2.75% has been announced, with a provision for an additional incentive 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 six-digit Harmonised System (HS) level. The positive list covers about 75% of India’s tariff lines and is focused on sectors with high MSME participation. For FY 2025–26, an exporter-wise annual cap of ₹50 lakh per firm has been set.
The ministry said the applicable interest subvention rates will be reviewed twice a year—in March and September—based on domestic and global benchmarks. The positive list has been prepared using a data-driven methodology, prioritising labour-intensive and capital-intensive sectors, MSME concentration and value addition. Restricted and prohibited items, waste and scrap, and products already covered under overlapping incentive schemes have been excluded, while defence and SCOMET-notified products have been included to support strategic exports.
Operational guidelines for the interest subvention scheme will be issued by the Reserve Bank of India, and the intervention will initially be implemented on a pilot basis.
The second intervention focuses on collateral support for export credit, aimed at improving MSME exporters’ access to bank finance. Under this measure, collateral guarantee support will be provided in partnership with the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
The scheme offers guarantee coverage of up to 85% for micro and small exporters and up to 65% for medium exporters, with a maximum outstanding guaranteed exposure of ₹10 crore per exporter in a financial year. According to the ministry, this support is designed to complement existing credit guarantee mechanisms and encourage banks to increase lending to export-oriented MSMEs.
Detailed guidelines for the collateral support scheme will be notified by CGTMSE, followed by a pilot rollout. Both interventions will be closely monitored and refined over time, as part of a broader overhaul of India’s export promotion framework, the ministry said.
