MSME export credit support India has taken a major step forward with the launch of two targeted interventions under the Export Promotion Mission. The initiatives focus on lowering the cost of export finance and improving credit access for MSME exporters, thereby strengthening India’s export competitiveness and supporting deeper integration into global value chains.
As part of the NIRYAT PROTSAHAN sub-scheme, the Government of India has introduced interest support for export credit and a collateral guarantee mechanism. Together, these measures directly address long-standing working capital and collateral challenges faced by MSMEs.
Interest Support for Pre and Post Shipment Export Credit
To begin with, the first intervention offers interest subvention on pre and post shipment rupee export credit for MSMEs. This MSME export credit support India initiative reduces borrowing costs and improves cash flow for exporters.
Eligible lenders will provide export credit with a base interest subvention of 2.75 per cent. In addition, exporters targeting notified under-represented or emerging markets may receive extra incentives once operational systems are ready.
Importantly, the benefit applies only to products listed under a notified positive list at the Harmonised System six-digit level. This list covers nearly 75 per cent of India’s tariff lines and reflects strong MSME participation. For FY 2025 to 26, the interest benefit is capped at ₹50 lakh per Importer Exporter Code.
Moreover, authorities will review interest subvention rates twice a year in March and September. These reviews will consider domestic and global financial benchmarks. The positive list prioritises labour-intensive sectors, MSME density and value addition, while excluding restricted items, waste and scrap. Defence and SCOMET items remain included to support strategic exports.
Operational guidelines will be issued by the Reserve Bank of India. Initially, the scheme will run as a pilot to allow timely refinements.
Collateral Guarantee for Export Credit
In parallel, the second intervention focuses on easing collateral requirements for exporters. This MSME export credit support India measure introduces a collateral guarantee for export credit in partnership with the Credit Guarantee Fund Trust for Micro and Small Enterprises.
Under this framework, Micro and Small exporters can access guarantee coverage of up to 85 per cent, while Medium exporters can receive coverage of up to 65 per cent. The maximum guaranteed outstanding exposure is capped at ₹10 crore per exporter per financial year.
As a result, banks gain greater confidence to lend to export-oriented MSMEs. This intervention complements existing credit guarantee schemes and encourages higher export credit flow across sectors. CGTMSE will soon notify detailed guidelines, followed by a pilot rollout.
Building a Stronger Export Ecosystem
Together, these interventions aim to lower export costs, expand access to finance and diversify export markets. Consequently, MSMEs and first-time exporters can scale operations and participate more effectively in global trade.
The Export Promotion Mission, approved on 12 November 2025, has an outlay of ₹25,060 crore from FY 2025 to 26 through FY 2030 to 31. The Mission is jointly implemented by the Department of Commerce, the Ministry of MSME and the Ministry of Finance. It operates through two sub-schemes, NIRYAT PROTSAHAN for trade finance support and NIRYAT DISHA for non-financial enablers such as market access, branding, logistics and trade intelligence.
Courtesy: pib.gov.in
