Government has launched two key export-finance interventions under the Export Promotion Mission (EPM) to strengthen MSME exports and improve access to affordable trade finance. Both interventions will be implemented on a pilot basis with continuous monitoring and data-driven refinements.
Intervention – 1: Interest Subvention for Export Credit (Export Promotion Mission–NIRYAT PROTSAHAN)
Objective
- Reduce cost of export credit
- Ease working-capital constraints for MSME exporters
- Encourage exports in priority and emerging markets
What it provides
- Interest subvention on pre- and post-shipment rupee export credit
- Delivered through eligible lending institutions
Key Provisions
- Base interest subvention: 2.75%
- Additional incentive for exports to under-represented / emerging markets
- Applicable only to exports in a notified Positive List of tariff lines
- Defined at HS-6 digit level
- Covers ~75% of India’s tariff lines
- Focus on high MSME participation sectors
Positive List – Selection Criteria
- Transparent, data-driven methodology
- Priority to:
- Labour-intensive & capital-intensive sectors
- High MSME concentration
- Domestic value-addition
- Excludes:
- Restricted/prohibited items
- Waste & scrap
- Products under overlapping incentive schemes
- Includes defence & SCOMET-notified strategic exports
Financial Limits & Review
- Exporter-wise annual cap: ₹50 lakh (FY 2025-26)
- Interest rates reviewed biannually (March & September)
Operational Rollout
- Implemented through existing banking system
- Digital intent filing on DGFT portal
- Monitoring via UIN-linked reporting
- Detailed guidelines to be issued by RBI
- Pilot rollout first→ refinements based on feedback
Intervention – 2: Collateral Support for Export Credit(Export Promotion Mission–NIRYAT PROTSAHAN)
Objective
- Address collateral barriers
- Improve bank lending access for MSME exporters
- Support first-time & small exporters
What it provides
- Collateral guarantee support for export credit
- Implemented in partnership with:
- Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE)
Guarantee Coverage
- Up to 85%– for Micro & Small exporters
- Up to 65%– for Medium exporters
- Maximum guaranteed exposure: ₹10 crore per exporter / financial year
Purpose & Benefits
- Complements existing credit-guarantee mechanisms
- Reduces lender risk
- Unlocks export credit availability
- Encourages bank confidence in MSME exporters
Implementation
- CGTMSE to issue detailed guidelines
- Pilot rollout→ later integrated into revised export-promotion framework
- Continuous monitoring & data-driven refinements
Significance of Two Interventions
- Improves access to affordable export finance
- Supports working-capital liquidity
- Reduces entry barriers for first-time exporters
- Expands India’s MSME export base
- Strengthens export-led growth & integration into GVCs
About Export Promotion Mission (EPM)
- Flagship initiative approved by Union Cabinet
- Outlay: ₹25,060 crore (FY 2025-26 to FY 2030-31)
- Focus areas:
- MSMEs
- First-time exporters
- Labour-intensive sectors
- Export diversification & value-added exports
Institutional Framework
- Jointly implemented by:
- Department of Commerce
- Ministry of MSME
- Ministry of Finance
Mission Strategy
- Lower cost of exporting
- Expand access to trade finance
- Strengthen India’s export brand
- Diversify markets & products
- Enable deeper integration into global value chains
Two Integrated Sub-Schemes
NIRYAT PROTSAHAN
- Focus: Affordable & diversified trade finance
- Includes:
- Interest subvention
- Credit guarantees
- Export factoring & related instruments
NIRYAT DISHA
- Focus: Non-financial export enablers
- Includes:
- Market access & branding
- Quality/compliance support
- Logistics assistance
- Trade intelligence & capacity building
Key Facts
- DGFT Headquarters– New Delhi
- CGTMSE established– 2000
- MSME export share– ~45–48% of India’s total exports (approx.)
- Pre-shipment export credit– Finance for manufacturing & procurement before shipment
- Post-shipment export credit– Finance after shipment till payment realization