As part of the Export Promotion Mission rollout, the Commerce Ministry has introduced two crucial interventions under the Niryat Protsahan sub-scheme to enhance MSME exports. One intervention involves interest subvention for pre- and post-shipment export credit, aiming to reduce credit costs and alleviate working-capital challenges for MSME exporters. This initiative provides a base interest subvention of 2.75 per cent, with additional incentives for exports to specific markets.
The interest subvention applies to pre- and post-shipment rupee export credit from eligible lending institutions, focusing on a positive list of tariff lines at the Harmonised System six-digit level. This list covers around 75 per cent of India’s tariff lines, emphasizing sectors with high MSME participation. Each firm has an annual cap of Rs 50 lakh for FY 2025–26, with rates subject to biannual reviews in March and September based on domestic and global benchmarks.
The second intervention under Niryat Protsahan offers collateral support for export credit to address constraints faced by MSME exporters in accessing bank finance. This initiative introduces collateral guarantee support in partnership with the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), providing coverage up to 85 per cent for micro and small exporters and up to 65 per cent for medium exporters, with a maximum exposure of Rs 10 crore per exporter annually.
These interventions, implemented on a pilot basis, aim to enhance bank lending to export-oriented MSMEs and will undergo continuous monitoring and refinements. The Export Promotion Mission, a government initiative approved with a significant outlay, seeks to bolster India’s export competitiveness, particularly focusing on MSMEs, first-time exporters, and labor-intensive sectors, while promoting market diversification and value-added exports.
