New Delhi: Govt on Friday announced a Rs 7,295-crore export support package, comprising a Rs 5,181-crore interest subvention scheme along with a Rs 2,114-crore collateral support, to improve exporters' access to credit.
Additional secretary in the commerce ministry Ajay Bhadoo said that these interventions will address the trade finance issues of exporters.
Under the interest subvention scheme, exporters will get a subsidy on pre- and post-shipment export credit.
This is the second component of the Rs 25,060-crore export promotion mission (EPM) approved in Nov 2025.
The subvention scheme will help exporters from identified sectors to avail of rupee export credit at competitive rates at a time when global trade is facing headwinds.
Under the scheme, govt will provide subsidy benefits in the range of 2.75% to eligible MSME exporters.
According to the commerce ministry, the subvention rates will be reviewed bi-annually in March and Sept based on domestic and global benchmarks.
The annual benefit is capped at Rs 50 lakh per firm. The detailed guidelines of the scheme will be released by the RBI, which is the implementing agency, along with the Directorate General of Foreign Trade (DGFT).
A pilot rollout will be undertaken, with scope for refinement based on implementation feedback, it said.
Govt has also announced a Rs 2,114-crore collateral support for export credit.
Under this, credit guarantee support will be given to MSMEs for export-linked working capital loans.
Up to Rs 10 crore collateral guarantee per firm will be provided under this support measure.
The guarantee coverage up to 85% will be available for micro and small exporters, and up to 65% for medium exporters.
According to the DGFT, interest subvention and collateral support apply only to exports from a selected positive list of products. Defence and SCOMET (Special Chemicals, Organisms, Materials, Equipment and Technologies) products are covered in these measures.
However, restricted items, waste and scrap, and PLI (production-linked incentive) covered items will be out of the purview of these measures.
This intervention complements existing credit-guarantee mechanisms and is designed to increase bank lending for export-oriented MSMEs, the ministry said.
Guidelines will be notified by CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises), followed by a pilot phase and subsequent integration into a comprehensive revision of export-promotion frameworks, it added. agencies
Source Name : Economic Times