The measures, exporters said, address the fundamental constraints that limit MSME export growth such as high cost of credit, limited access to diversified trade finance, compliance burdens, logistic inefficiencies, and information gaps especially as shipments are expected to grow with India’s key trade deals with the UK, US and the EU coming into effect soon.
Out of 10 components of the mission, three- Market Access Support, Interest Subvention for Pre- and Post-Shipment Export Credit, and Collateral Support for Export Credit – have already been rolled out in January.
Export Promotion Mission is a combination of financial enablers under ‘Niryat Protsahan’ and trade ecosystem support under ‘Niryat Disha’. To support exporters using digital channels, the commerce and industry ministry announced credit facilities with interest subvention and partial credit guarantees.
The Direct E-Commerce Credit Facility will provide support up to ₹50 lakh with 90% guarantee coverage.
Separately, the Overseas Inventory Credit Facility will extend support of up to Rs 5 crore with 75% guarantee coverage and an interest subvention of 2.75% would be available, subject to an annual ceiling of ₹15 lakh per applicant.
“The mission seeks to simplify processes for MSMEs by strengthening access to credit, enhancing quality standards, supporting compliance with international regulations, and expanding logistics and warehousing infrastructure globally,” commerce and industry minister Piyush Goyal said while launching the seven interventions.To promote export factoring as an affordable working capital solution for MSMEs, an interest subvention of 2.75% will be provided on the factoring cost for eligible transactions undertaken through RBI/IFSCA recognised entities. Assistance is capped at ₹50 lakh per MSME annually and will be processed through a digital claim mechanism to ensure transparency and timely disbursal. “These measures will reduce transaction costs, improve access to finance, strengthen compliance readiness and deepen integration of Indian MSMEs into global value chains,” said Federation of Indian Export Organisations (FIEO) president SC Ralhan.
The ministry said that to support emerging export opportunities, the intervention enables exporters to access new or high-risk markets through shared-risk and credit enhancement instruments such as Letters of Credit confirmation and negotiation.
For Trade Regulations, Accreditation and Compliance Enablement, support will be extended to exporters in meeting international testing, inspections, certifications and other conformity requirements. The measures come as India’s goods exports rose 0.61% on-year in January to $36.56 billion.