Govt rolls out Interest Subvention Scheme guidelines for MSME exporters worth Rs 5,181 crore

To start with, eligible MSME exporters will be offered an interest subvention of 2.75 percent with the rate designed as a floating one linked to the repo rate.

The commerce ministry on January 2 launched two more components of its Export Promotion Mission, including an interest subvention scheme for pre- and post-shipment export credit under the Niryat Protsahan initiative.

The interest subvention scheme is intended to help MSMEs access export credit at competitive rates below prevailing market levels.

The tentative outlay for the interest subvention scheme for exporters is Rs 5,181 crores over a six-year period from 2025 to 2031.

To start with, eligible MSME exporters will be offered an interest subvention of 2.75 percent with the rate designed as a floating one linked to the repo rate.

The ministry added that additional incentives for MSMEs exporting to new and emerging markets will be notified subsequently, underlining the government’s intent to diversify export destinations and boost outbound shipments.

The interest subvention will apply only to selected export items on a notified list, making up about 75 percent of India’s tariff lines and those with high participating from MSMEs.

Each exporter can get up to Rs 50 lakh per Importer Exporter Code (IEC) in 2025–26. The rates will be reviewed twice a year, in March and September, taking into account domestic and global benchmarks.

The detailed guidelines for the scheme will be issued by the Reserve Bank of India soon.

The second component under Niryat Protsahan initiative relates to collateral support for export credit to address collateral constraints faced by MSME exporters.

Under this intervention, 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 percent will be provided for Micro and Small exporters and up to 65 percent for Medium exporters, with a maximum outstanding guaranteed exposure of Rs 10 crore per exporter in a financial year.

"The two 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, thereby enabling Indian exporters, particularly MSMEs, to integrate more deeply into global value chains and contribute to sustained export-led growth," the ministry said in a statement.

These initiatives are part of the wider Export Promotion Mission approved by the Cabinet November 2025 with an outlay of Rs 25,060 crore for the period 2025-26 to 2030-31.

The Mission has two sub-schemes: Niryat Protsahan, which focuses on improving access to trade finance and credit for exporters, especially MSMEs, and Niryat Disha, which covers non-financial measures to enhance the global competitiveness and export readiness of Indian exporters.