Export boost: Centre announces seven measures to support exporters and MSMEs

The government on Friday announced seven measures, including credit assistance for e-commerce exporters and support for alternative trade finance instruments, aimed at boosting India’s outbound shipments and strengthening export competitiveness.The initiatives form part of the Rs 25,060 crore export promotion mission, under which three of the 10 proposed components had already been rolled out in January, reported PTI. To support exporters using digital channels, the commerce ministry introduced credit facilities backed by interest subvention and partial credit guarantees. The Direct E-Commerce Credit Facility will provide support of up to Rs 50 lakh with 90 per cent guarantee coverage.The Overseas Inventory Credit Facility will offer support of up to Rs 5 crore with 75 per cent guarantee coverage, along with an interest subvention of 2.75 per cent, subject to an annual ceiling of Rs 15 lakh per applicant, the ministry said.In a bid to promote export factoring as an affordable working capital solution for MSMEs, an interest subvention of 2.75 per cent will be provided on factoring costs for eligible transactions undertaken through RBI or IFSCA-recognised entities. Assistance will be capped at Rs 50 lakh per MSME annually and processed through a digital claim mechanism to ensure transparency and timely disbursal.To help exporters access new or high-risk markets, the government will support alternative trade instruments through shared-risk and credit enhancement mechanisms such as Letters of Credit confirmation and negotiation.Under Trade Regulations, Accreditation and Compliance Enablement (TRACE), exporters will receive support in meeting international testing, inspection, certification and conformity requirements. Partial reimbursement of 60 per cent under the Positive List and 75 per cent under the Priority Positive List will be provided for eligible expenses, subject to an annual ceiling of Rs 25 lakh per import export code (IEC).The ministry also announced Facilitating Logistics, Overseas Warehousing and Fulfilment (FLOW), which will enable exporters to access overseas warehousing and fulfilment infrastructure, including e-commerce export hubs integrated with global distribution networks. Assistance of up to 30 per cent of approved project cost will be provided for a maximum of three years, subject to prescribed ceilings and MSME participation norms.For exporters from northeastern and hilly regions, Logistics Interventions for Freight and Transport (LIFT) was introduced to mitigate geographical disadvantages. The scheme provides partial reimbursement of up to 30 per cent of eligible freight expenditure, capped at Rs 20 lakh per IEC per financial year.Financial assistance will also be extended under Support for Trade Intelligence and Facilitation (INSIGHT), generally limited to 50 per cent of project cost, with up to 100 per cent support for proposals from central and state government institutions and Indian missions abroad, subject to notified ceilings.Through these coordinated financial and ecosystem interventions, the government aims to reduce the cost of capital, diversify trade finance instruments, improve compliance readiness, address logistics challenges and strengthen overseas market integration for MSMEs.Launching the measures, commerce and industry minister Piyush Goyal said they are aimed at empowering Micro, Small and Medium Enterprises (MSMEs) for global markets.He said India’s expanding network of Free Trade Agreements (FTAs) has significantly improved market access for exporters, noting that nearly 70 per cent of global GDP and two-thirds of global trade are now accessible to India through nine concluded FTAs, including the first tranche of the Bilateral Trade Agreement with the United States.These agreements provide preferential access across sectors in 38 developed and emerging economies.Emphasising that the benefits of global trade must reach every MSME, startup and entrepreneur, Goyal said the mission seeks to promote new products, services and exporters while enabling Indian businesses to access new markets.He added that India has recorded double-digit growth in merchandise exports in the first half of February.Commerce secretary Rajesh Agarwal said the interventions would help exporters access new markets and promote exports of new products. He also urged export promotion councils to prepare communication packages to leverage the free trade agreements finalised by India.During April–January of the 2025–26 fiscal year, India’s exports rose 2.22 per cent to $366.63 billion, while imports grew 7.21 per cent to $649.86 billion, resulting in a trade deficit of $283.23 billion during the nine-month period, according to official data.