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 MSME exports by providing affordable and easier access to trade finance, the Commerce Ministry said on Friday.
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, according to a Commerce Ministry statement.
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 announced, with a provision for an 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 (HS) six-digit level. The list covers around 75 per cent of India’s tariff lines and reflects high MSME participation. An exporter-wise annual cap of Rs 50 lakh per firm has been prescribed for FY 2025–26. The applicable rates will be reviewed biannually in March and September, taking into account domestic and global benchmarks, the statement said.
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. Restricted and prohibited items, waste and scrap, and products covered under overlapping incentive schemes have been excluded. 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 constraints faced by MSME exporters and improving access to bank finance.
Under this intervention, 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 Rs 10 crore per exporter in a financial year.
This intervention is designed to complement existing credit guarantee mechanisms and increase bank lending to export-oriented MSMEs. Detailed guidelines will be notified by the CGTMSE, followed by a pilot phase and subsequent integration into a comprehensive revision of export promotion frameworks.
Both 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. The initiative seeks to enable Indian exporters, particularly MSMEs, to integrate more deeply into global value chains and contribute to sustained export-led growth, the statement said.
The Centre has launched a range of interventions under the Export Promotion Mission, a flagship initiative approved by the Union Cabinet on November 12, 2025, with a total outlay of Rs 25,060 crore for the period from FY 2025–26 to FY 2030–31. The Mission focuses on strengthening India’s export competitiveness, with special emphasis on MSMEs, first-time exporters and labour-intensive sectors, while supporting market diversification and the promotion of value-added exports.
The Export Promotion Mission is jointly implemented by the Department of Commerce, the Ministry of MSME and the Ministry of Finance. It is structured around two integrated sub-schemes — 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.
— IANS
