Export push: Govt unveils Rs 7,295 crore credit support package; interest subvention, collateral guarantee for exporters

The government on Friday announced a Rs 7,295-crore export support package aimed at improving exporters’ access to credit, comprising a Rs 5,181-crore interest subvention scheme and a Rs 2,114-crore collateral support measure, officials said.

Both interventions will be implemented over a six-year period from 2025 to 2031 and form part of the Rs 25,060-crore Export Promotion Mission (EPM) approved by the Cabinet in November 2025, PTI reported.

Additional Secretary in the Commerce Ministry Ajay Bhadoo said the measures are designed to address trade finance challenges faced by exporters, especially at a time when global trade is under pressure.

Under the interest subvention scheme, exporters will receive subsidy support on both pre-shipment and post-shipment export credit. The scheme will help exporters from identified sectors access rupee export credit at competitive rates.

The government will provide interest subvention in the range of 2.75 per cent to eligible micro, small and medium exporters. The annual benefit under the scheme will be capped at Rs 50 lakh per firm, the commerce ministry said.

The subvention rates will be reviewed twice a year, in March and September, based on domestic and global benchmarks. The Reserve Bank of India, in coordination with the Directorate General of Foreign Trade (DGFT), will be the implementing agency, and detailed guidelines will be issued separately.

A pilot roll-out of the scheme will be undertaken initially, with scope for refinements based on implementation feedback.

In addition, the government announced a Rs 2,114-crore collateral support scheme for export credit, under which credit guarantee cover will be provided to MSMEs for export-linked working capital loans.

Under this support measure, collateral guarantee of up to Rs 10 crore per firm will be available. The guarantee coverage will be up to 85 per cent for micro and small exporters and up to 65 per cent for medium exporters.

According to the DGFT, both the interest subvention and collateral support schemes will apply only to exports from a selected positive list of products. Defence and SCOMET (Special Chemicals, Organisms, Materials, Equipment and Technologies) items are covered, while restricted products, waste and scrap, and goods covered under the production-linked incentive (PLI) schemes will be excluded.

The package complements existing credit-guarantee mechanisms and is aimed at boosting bank lending to export-oriented MSMEs, the ministry said. Guidelines for the collateral support scheme will be notified by the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), followed by a pilot phase and integration into a broader overhaul of export-promotion frameworks.