The Export Promotion Mission aims at lowering the cost of exporting, expanding access to finance, strengthening India’s export brand and diversifying export markets, thereby enabling Indian exporters, particularly MSMEs, to integrate more deeply into global value chains and contribute to sustained export-led growth.
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, 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.
An exporter-wise annual cap of ₹5 million per importer exporter code (IEC) has been prescribed for fiscal 2025-26 (FY26). 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, a release from the ministry said.
The second intervention relates to collateral support for export credit, aimed at addressing collateral constraints faced by MSME exporters and improving access to bank finance.
Under this, 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 ₹100 million 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.
ALCHEMPro News Desk (DS)
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