The Ministry of Commerce and Industry has launched two key interventions under the NIRYAT PROTSAHAN sub-scheme of the Export Promotion Mission (EPM) to strengthen exports by Micro, Small and Medium Enterprises (MSMEs) and improve their access to trade finance. The Union Cabinet had earlier approved the Export Promotion Mission with a total outlay of ₹25,060 crore for the period FY 2025-26 to FY 2030-31. The first intervention introduces an interest subvention on pre- and post-shipment rupee export credit granted by eligible lending institutions, with the aim of reducing the interest cost on export credit and easing working-capital constraints faced by MSME exporters. A base rate of interest subvention of 2.75 percent has been agreed upon, with additional incentives planned for exports to underrepresented or emerging markets once the scheme achieves operational readiness. The second intervention provides collateral-guarantee support for export credit, arranged in association with the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). This addresses the collateral constraint that most MSME exporters face in accessing bank finance. The scheme provides coverage of up to 85 percent for Micro and Small exporters and up to 65 percent for Medium exporters, with a limit of ₹10 crore per exporter per year. Both interventions will be implemented on a pilot basis with ongoing monitoring and data-driven refinements. The broader Export Promotion Mission aims to enhance India's export competitiveness, diversify markets, and support labour-intensive and first-time exporters, and includes complementary components such as Niryat Disha for interior and low-export-intensity districts.
Government Launches Two Key Interventions under Export Promotion Mission: Interest Subvention at 2.75% and Collateral Guarantee up to 85% for MSME Exporters
The Ministry of Commerce and Industry launched two key interventions under the Niryat Protsahan sub-scheme of the Export Promotion Mission: a 2.75% interest subvention on pre- and post-shipment rupee export credit, and a CGTMSE-backed collateral guarantee covering up to 85% for Micro and Small exporters and 65% for Medium exporters, with a limit of ₹10 crore per exporter per year. The overall EPM outlay is ₹25,060 crore for FY 2025-26 to 2030-31.
Key facts
- Ministry of Commerce and Industry launched two key interventions under the Niryat Protsahan sub-scheme of the Export Promotion Mission
- Interest subvention of 2.75% on pre- and post-shipment rupee export credit for MSME exporters
- Collateral guarantee arranged with CGTMSE: up to 85% coverage for Micro and Small exporters and up to 65% for Medium exporters
- Limit of ₹10 crore per exporter per year under the collateral guarantee scheme
- Overall Export Promotion Mission outlay of ₹25,060 crore for FY 2025-26 to FY 2030-31, approved by Union Cabinet
- Interventions implemented on a pilot basis with ongoing monitoring and data-driven refinements
PYQPrelims/PYQ angle
- RAS 2024 Union Budget 2025-26 measures to boost MSMEs in India — Both examine central government interventions to strengthen MSME access to finance and export competitiveness under recent policy pushes.
Mains angle
Q: Examine the two Niryat Protsahan interventions launched under the Export Promotion Mission to strengthen MSME exporters. How do they address trade-finance constraints faced by Indian exporters?
Answer (50 words):
Under the 25,060 crore rupee Export Promotion Mission outlay for FY 2025-26 to 2030-31, the Niryat Protsahan sub-scheme offers a 2.75 percent interest subvention on rupee export credit and CGTMSE-backed collateral guarantees covering 85 percent for Micro-Small and 65 percent for Medium exporters, capped at 10 crore rupees yearly.
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What is the base rate of interest subvention offered to MSME exporters under the new Niryat Protsahan sub-scheme of the Export Promotion Mission?
Under the Niryat Protsahan sub-scheme of the Export Promotion Mission, the Government of India has agreed upon a base interest subvention rate of 2.75 percent on pre- and post-shipment rupee export credit for MSME exporters, with additional incentives planned for exports to underrepresented or emerging markets.
Source: Press Information Bureau
Frequently asked questions
What is the base interest subvention rate under the new Niryat Protsahan sub-scheme for MSME exporters?
The base rate of interest subvention is 2.75 percent on pre- and post-shipment rupee export credit.
What is the collateral guarantee coverage for Micro and Small exporters under the scheme?
Up to 85 percent coverage for Micro and Small exporters, arranged with CGTMSE, with a ₹10 crore per exporter per year limit.
What is the overall outlay of the Export Promotion Mission?
₹25,060 crore for the period FY 2025-26 to FY 2030-31, approved by the Union Cabinet.
Which agency is associated with the collateral guarantee component of the scheme?
The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) is associated with the collateral guarantee component.
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