New Delhi,  2 Jan

The Centre on Friday announced a ₹7,295-crore export support package aimed at improving exporters’ access to credit, with a strong focus on micro, small and medium enterprises (MSMEs).

The package comprises a ₹5,181-crore interest subvention scheme and a ₹2,114-crore collateral support measure, both to be implemented over six years from 2025 to 2031.

Additional Secretary in the Commerce Ministry Ajay Bhadoo said the measures are designed to address persistent trade finance challenges faced by exporters.

Under the interest subvention scheme, eligible exporters will receive subsidies on pre- and post-shipment export credit. This forms the second component of the ₹25,060-crore Export Promotion Mission approved in November 2025. The first component, market access support with an outlay of ₹4,531 crore, was rolled out on  31 December.

The scheme will allow exporters from identified sectors to avail rupee export credit at competitive rates at a time when global trade is under pressure. Eligible MSME exporters will receive interest subsidy benefits of up to 2.75 per cent.

According to the Commerce Ministry, subvention rates will be reviewed twice a year in March and September, based on domestic and global benchmarks. The annual benefit has been capped at ₹50 lakh per firm.

Detailed guidelines will be issued by the Reserve Bank of India, the implementing agency, in coordination with the Directorate General of Foreign Trade. A pilot rollout will be undertaken, with scope for refinements based on feedback.

In addition, the government has announced ₹2,114 crore in collateral support for export credit. Under this measure, MSMEs will receive credit-guarantee support for export-linked working capital loans, with collateral cover of up to ₹10 crore per firm.

Guarantee coverage will extend up to 85 per cent for micro and small exporters and up to 65 per cent for medium exporters.

The DGFT said both interest subvention and collateral support will apply only to exports from a selected positive list of products. Defence and SCOMET items are included, while restricted goods, waste and scrap, and products covered under production-linked incentive (PLI) schemes are excluded.

The ministry said the intervention complements existing credit-guarantee mechanisms and is expected to boost bank lending to export-oriented MSMEs. Guidelines will be notified by the Credit Guarantee Fund Trust for Micro and Small Enterprises, followed by a pilot phase and later integration into a broader revamp of export-promotion frameworks