Context:
To boost exports and ease credit constraints faced by exporters—especially MSMEs—the Government has expanded the Export Promotion Mission (EPM) with additional financial support measures.
Key Developments
- The Government of India has introduced two new credit-linked schemes under the Export Promotion Mission (EPM).
- Total financial outlay: ₹5,181 crore over six years (till 2030–31).
- With this announcement, 3 out of 11 schemes under EPM have been operationalised.
- The schemes fall under the Niryat Protsahan category, aimed at reducing the cost of export credit.
Scheme 1: Interest Subvention for Pre- and Post-Shipment Export Credit
- Objective: Lower the cost of export finance for exporters.
- Coverage:
- Pre-shipment and post-shipment rupee export credit
- Extended by scheduled commercial banks
- Beneficiaries:
- Eligible MSME exporters
- Implemented as per:
- Reserve Bank of India Master Directions
- Expected Impact:
- Improves MSME liquidity
- Enhances export competitiveness
- Supports India’s integration into global value chains
- Maintains fiscal prudence
Scheme 2: Collateral Support for Export Credit
- Objective: Enable MSME exporters to access bank credit despite limited collateral or third-party guarantees.
- Implementation Agency:
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- Nature:
- Implemented on a pilot basis
- Applicable to export-linked working capital loans
- Eligibility:
- MSME exporters dealing in notified tariff lines
- Guarantee Coverage:
- Micro & Small exporters: up to 85%
- Medium exporters: up to 65%
