Centre Launches Key Interventions Under Export Promotion Mission to Boost MSME Exports

The Centre has rolled out 2 major interventions under the Niryat Protsahan sub-scheme as part of the Export Promotion Mission to strengthen MSME exports. Announced on December 29, 2025, these measures aim to provide affordable and easier access to trade finance for exporters.

The first intervention focuses on interest subvention for pre- and post-shipment export credit, while the second introduces collateral guarantee support for export credit. Both initiatives will be implemented on a pilot basis with scope for refinement based on feedback.

Interest Subvention for Export Credit

Under the first intervention, MSME exporters will receive interest subvention on pre- and post-shipment rupee export credit extended by eligible lending institutions. A base interest subvention of 2.75% has been announced, with an additional incentive for exports to notified under-represented or emerging markets.

The benefit will apply only to exports covered under a positive list of tariff lines at the Harmonised System (HS) six-digit level, which includes around 75% of India’s tariff lines. An annual cap of ₹50 lakh per exporter has been prescribed for FY 2025–26, and applicable rates will be reviewed biannually in March and September.

Positive List and Operational Guidelines

The positive list has been prepared using a transparent, data-driven approach, prioritising labour-intensive and capital-intensive sectors with high MSME participation. Restricted and prohibited items, waste and scrap, and products under overlapping incentive schemes have been excluded.

Defence and SCOMET-notified products have been included to support strategic exports. Detailed operational guidelines for interest subvention will be issued by the Reserve Bank of India, and a pilot rollout will precede full-scale implementation.

Collateral Support for Export Credit

The second intervention introduces collateral guarantee support for export credit in partnership with the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). Guarantee coverage of up to 85% will be provided for micro and small exporters, and up to 65% for medium exporters.

The maximum outstanding guaranteed exposure will be ₹10 crore per exporter in a financial year. This measure aims to complement existing credit guarantee mechanisms and enhance bank lending to export-oriented MSMEs. CGTMSE will issue detailed guidelines, followed by a pilot phase and integration into a broader export promotion framework.

Read More: Centre Launches ₹4,531 Crore Market Access Support Scheme for Exporters.

Conclusion

The launch of interest subvention and collateral support measures under Niryat Protsahan marks a significant step towards improving MSME access to affordable trade finance. These interventions are expected to ease working capital constraints and enhance credit availability for exporters.

With a pilot-based approach and continuous monitoring, the government aims to refine these schemes for maximum impact. The Export Promotion Mission underscores India’s commitment to driving export-led growth and strengthening its position in global trade.

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