As part of the initial rollout of the Export Promotion Mission, the Government of India has launched two major interventions under the NIRYAT PROTSAHAN sub-scheme aimed at strengthening Micro, Small and Medium Enterprise (MSME) exports and improving access to export finance.
These interventions are designed to reduce the cost of exporting, ease working capital constraints, and enhance credit availability for MSME exporters, enabling deeper integration into global value chains.
Interest Support for Pre- and Post-Shipment Export Credit
The first intervention introduces interest subvention on pre- and post-shipment rupee export credit extended by eligible lending institutions. The objective is to lower the cost of export finance and address liquidity challenges faced by MSME exporters.
Under this measure, a base interest subvention of 2.75 per cent has been approved. In addition, a provision has been made for extra incentive for exports to notified under-represented or emerging markets, subject to operational readiness.
The interest support will apply only to exports covered under a notified positive list of tariff lines at the Harmonised System six-digit level, covering nearly 75 per cent of India’s tariff lines, where MSME participation is significant. An exporter-wise annual cap of ₹50 lakh per Importer Exporter Code (IEC) has been prescribed for FY 2025–26. Applicable 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 methodology, prioritising labour-intensive 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. 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 a pilot rollout planned for further refinement.
Collateral Guarantee Support for Export Credit
The second intervention focuses on addressing collateral constraints that limit MSME access to bank finance. A collateral guarantee for export credit is being introduced in partnership with the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
Under this scheme, 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 ₹10 crore per exporter per financial year.
This measure is intended to complement existing credit guarantee mechanisms and stimulate increased bank lending to export-oriented MSMEs. Detailed guidelines will be notified by CGTMSE, followed by a pilot phase and eventual integration into a broader revision of export promotion frameworks.
Pilot Implementation and Long-Term Export Strategy
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 reduce export costs, expand access to finance, strengthen India’s export brand, and diversify export markets—particularly benefiting MSMEs and first-time exporters.
The Export Promotion Mission, approved by the Union Cabinet on 12 November 2025, has a total outlay of ₹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.
The Mission comprises two integrated sub-schemes:
- NIRYAT PROTSAHAN, focusing on access to affordable and diversified trade finance
- NIRYAT DISHA, supporting non-financial enablers such as market access, branding, regulatory compliance, logistics, and trade intelligence
Together, these measures aim to enhance India’s export competitiveness and promote sustained, export-led growth.