The Government of India has launched the Interest Subvention for Pre- and Post-Shipment Export Credit under the Export Promotion Mission (EPM) – Niryat Prothsahan, with immediate effect, aimed at improving access to affordable export credit for MSME exporters.
The intervention seeks to reduce the cost of pre- and post-shipment rupee export credit through a rules-based and transparent interest-relief mechanism, enhancing liquidity and enabling MSMEs to meet working capital requirements more efficiently.
Key Features of the Scheme
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Interest subvention of 2.75% per annum on pre-shipment and post-shipment rupee export credit
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Applicable to Micro, Small and Medium Enterprises (MSMEs)
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Maximum benefit capped at ₹50 lakh per exporter per financial year
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Support limited to export credit extended by lending institutions in line with RBI Master Directions on Pre- and Post-Shipment Export Credit
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Applicable to MSME manufacturer exporters and eligible merchant exporters under a notified positive list of HSN six-digit tariff lines
Implementation Framework
The scheme is being operationalised through the Reserve Bank of India on a pilot basis. Detailed implementation guidelines have been issued under Annexure-I, while the list of eligible HSN tariff lines is provided in Annexure-II. The procedure for online filing of intent by eligible MSME exporters on the DGFT portal, including step-by-step application requirements, is outlined in Annexure-III.
Pilot Roll-out and Stakeholder Consultation
In line with Paragraph 1.07A of the Foreign Trade Policy (FTP) 2023, the guidelines have also been issued for stakeholder consultation. Exporters, lenders and other stakeholders are invited to submit comments and suggestions within 30 days of issuance of the Trade Notice at epmdgft@gov.in.
The consultation process will run concurrently with the pilot implementation. Feedback received, along with operational learnings from the pilot phase, will be reviewed in a structured manner. Based on the outcomes, the guidelines will be refined and subsequently formalised through appropriate notifications under the FTP/HBP framework.
The launch marks a significant step towards strengthening export competitiveness of MSMEs by easing credit costs and improving access to finance.
