Government Launches Two Key Measures To Boost MSME Exports
The Government of India has launched two major interventions under the Niryat Protsahan sub-scheme as part of the initial rollout of the Export Promotion Mission, aimed at strengthening MSME exports and improving access to trade finance.
The first intervention introduces interest subvention on pre- and post-shipment export credit to reduce borrowing costs and ease working capital pressures for MSME exporters. Eligible lending institutions will provide rupee export credit with a base interest subvention of 2.75%, with provisions for additional incentives for exports to notified under-represented or emerging markets, subject to operational readiness.
The benefit will apply only to exports covered under a notified positive list of tariff lines at the HS six-digit level, accounting for nearly 75% of India’s tariff lines and reflecting high MSME participation. An exporter-wise annual cap of Rs 50 lakh per IEC has been set for FY 2025–26. The subvention rates will be reviewed bi-annually in March and September, based on domestic and global benchmarks.
The positive list has been developed using a transparent, data-driven approach, prioritising labour and capital-intensive sectors, MSME concentration and value addition. Restricted and prohibited items, waste and scrap and products covered under overlapping incentive schemes have been excluded, while defence and SCOMET-notified products have been included to support strategic exports. Detailed operational guidelines will be issued by the Reserve Bank of India, with the scheme to be rolled out initially on a pilot basis.
The second intervention introduces collateral guarantee support for export credit in partnership with the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). The measure aims to address collateral constraints and expand bank lending to export-oriented MSMEs.
Under the scheme, guarantee coverage of up to 85% will be provided for micro and small exporters and up to 65% for medium exporters, with a maximum guaranteed exposure of Rs 10 crore per exporter per financial year. Detailed guidelines will be notified by CGTMSE, followed by a pilot phase and subsequent integration into a broader overhaul of export promotion frameworks.
Both interventions will be implemented on a pilot basis with continuous monitoring and data-driven refinements. Through the Export Promotion Mission, the government aims to lower the cost of exporting, expand access to finance, strengthen India’s export brand and diversify export markets, enabling MSMEs to integrate more deeply into global value chains.
Approved by the Union Cabinet on 12 November 2025, the Export Promotion Mission has a total outlay of Rs 25,060 crore for the period FY 2025–26 to FY 2030–31. The Mission is jointly implemented by the Department of Commerce, Ministry of MSME and Ministry of Finance.
