Interest Support Launched for Pre- and Post-Shipment Export Credit for MSMEs

Collateral Guarantee for Export Credit Launched as Second Intervention to Improve MSME Access to Finance

As part of the initial rollout of the Export Promotion Mission, two key interventions under the NIRYAT PROTSAHAN sub-scheme have been launched to strengthen MSME exports and improve access to trade finance.

The first intervention relates to interest subvention for pre- and post-shipment export credit, aimed at reducing the cost of export credit and easing working-capital constraints faced by MSME exporters. Under this intervention, interest subvention will be provided on pre- and post-shipment rupee export credit extended by eligible lending institutions. A base interest subvention of 2.75 per cent has been provided, with a provision for additional incentive for exports to notified under-represented or emerging markets, subject to operational readiness.

The interest subvention will be applicable only to exports covered under a notified positive list of tariff lines at the Harmonised System six-digit level, covering approximately 75 per cent of India’s tariff lines and reflecting high MSME participation. An exporter-wise annual cap of ₹50 lakh per Importer Exporter Code (IEC) has been prescribed for FY 2025–26. The applicable rates will be reviewed bi-annually in March and September, taking into account domestic and global benchmarks.

The positive list has been prepared using a transparent and data-driven methodology, prioritising labour-intensive and capital-intensive sectors, MSME concentration and value addition, while excluding restricted and prohibited items, waste and scrap, and products covered under overlapping incentive schemes. Defence and SCOMET-notified products have been included to support strategic exports. Detailed operational guidelines for this intervention will be issued by the Reserve Bank of India. A pilot rollout will be undertaken, with scope for refinement based on implementation feedback.

The second intervention under NIRYAT PROTSAHAN relates to collateral support for export credit, aimed at addressing collateral constraints faced by MSME exporters and improving access to bank finance. Under this intervention, a collateral guarantee support for export credit is being introduced in partnership with the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). Guarantee coverage of up to 85 per cent will be provided 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.

This intervention is designed to complement existing credit guarantee mechanisms and to increase bank lending to export-oriented MSMEs. Detailed guidelines will be notified by CGTMSE, followed by a pilot phase and subsequent integration into a comprehensive revision of export promotion frameworks.

The two interventions will be implemented on a pilot basis with continuous monitoring and data-driven refinements. Through the Export Promotion Mission, the Government aims to lower the cost of exporting, expand access to finance, strengthen India’s export brand and diversify export markets, thereby enabling Indian exporters, particularly MSMEs, to integrate more deeply into global value chains and contribute to sustained export-led growth.

The Government of India has launched a range of interventions under the Export Promotion Mission, a flagship initiative approved by the Union Cabinet on 12 November 2025, with a total outlay of ₹25,060 crore for the period from FY 2025–26 to FY 2030–31. The Mission seeks to strengthen India’s export competitiveness with a sharp focus on MSMEs, first-time exporters and labour-intensive sectors, while supporting market diversification and promotion of value-added exports.

The Export Promotion Mission is jointly implemented by the Department of Commerce, Ministry of MSME and Ministry of Finance. The Mission is structured around two integrated sub-schemes, namely NIRYAT PROTSAHAN, which focuses on enabling access to affordable and diversified trade finance, and NIRYAT DISHA, which supports non-financial enablers such as market access, branding, regulatory compliance, logistics and trade intelligence.

MSME exports: interest subvention on export credit and collateral guarantees to expand affordable trade finance for exporters. Two interventions under NIRYAT PROTSAHAN strengthen MSME exports: an interest subvention on pre- and post-shipment rupee export credit (base 2.75%, exporter cap Rs.50 lakh per IEC, limited to a notified HS six-digit positive list) and a collateral guarantee for export credit via CGTMSE (up to 85% for micro/small, 65% for medium exporters, maximum guaranteed exposure Rs.10 crore per exporter per year), both to be piloted with detailed operational guidelines and periodic reviews.