New Delhi, Jan 2: The government on Friday announced a Rs 7,295-crore export support package, comprising a Rs 5,181-crore interest subvention scheme along with a Rs 2,114-crore collateral support, to improve exporters’ access to credit.
Both measures will be rolled out over a period of six years (2025-31).
Additional Secretary in the Commerce Ministry Ajay Bhadoo said that these interventions will address the trade finance issues of exporters. Under the interest subvention scheme, which has been resumed after a gap of one year, exporters will get a subsidy on pre- and post-shipment export credit.
It will help cut the cost of credit for exporters. MSMEs (micro, small and medium enterprises) currently pay anywhere between 9.5 per cent and 12.5 per cent for export credit, and the subsidy will make their goods competitive in the tough global market, which has been disrupted due to high tariffs imposed by the US.
This is the second component of the Rs 25,060-crore export promotion mission (EPM) approved in November 2025. The first component — market access support with an outlay of Rs 4,531 crore — was rolled out on December 31, 2025.
The subvention scheme will help exporters from identified sectors to avail of rupee export credit at competitive rates at a time when global trade is facing headwinds. Under the scheme, the government will provide subsidy benefits in the range of 2.75 per cent to eligible MSME exporters.
According to the commerce ministry, the subvention rates will be reviewed bi-annually in March and September based on domestic and global benchmarks.
The annual benefit is capped at Rs 50 lakh per firm.
The detailed guidelines of the scheme will be released by the RBI, which is the implementing agency, along with the Directorate General of Foreign Trade (DGFT).
A pilot roll-out will be undertaken, with a scope for refinement based on implementation feedback, it said.
Even with the cap, 75 per cent of the total tariff lines or product categories (over 12,000) would be covered.
The interest rate subvention that has been capped at 2.75 per cent for now will be benchmarked against the Repo or policy rates of India and comparable economies, and would be adjusted as the interest rates move, Bhadoo said.