Two Credit-linked Sub-Schemes under Export Promotion Mission

• The Government of India launched two pilot credit-linked sub-schemes to support exporters.
• These pilot schemes are part of the NIRYAT PROTSAHAN component of the Export Promotion Mission (EPM).
• Niryat Protsahan refers to the financial support pillar aimed at improving export competitiveness.

Scheme 1: Interest Subvention for Pre- and Post-Shipment Export Credit

• The first scheme provides interest subvention on pre- and post-shipment export credit.
  • Interest subvention means government support to reduce the effective interest rate for borrowers.
• The scheme offers a base interest subvention rate of 2.75 percent on rupee-denominated export credit.
• An additional incentive is provided for exports to notified under-represented or emerging markets.
  • Under-represented markets are countries where India’s export share remains low despite potential demand.
• The annual financial cap under the scheme is ₹50 lakh per exporter. This cap applies specifically for FY 2025–26.
• Eligibility under the scheme is restricted to exports covered under a notified positive list.
  • A positive list refers to approved items eligible for benefits under the scheme.
• The eligibility list is defined at the HS 6-digit tariff line level.
  • HS 6-digit classification is an internationally standardized system for classifying traded goods.
• The notified list covers approximately 75 percent of India’s total tariff lines.

Scheme 2: Collateral Support for Export Credit

• The second scheme provides collateral support for export credit.
  • Collateral support reduces the need for exporters to provide physical assets as security.
• The scheme is implemented in partnership with the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
  • CGTMSE provides credit guarantees to improve MSME access to formal finance.
• The scheme offers guarantee coverage of up to 85 percent for Micro and Small exporters.
• The scheme provides guarantee coverage of up to 65 percent for Medium exporters.
• The maximum guaranteed outstanding exposure is capped at ₹10 crore per exporter. This cap applies per financial year.
• Eligibility conditions under this scheme are the same as the interest subvention scheme.

About Export Promotion Mission (EPM)

• The Export Promotion Mission (EPM) was launched in November 2025.
• The mission has a six-year duration from FY 2025–26 to FY 2030–31.
• The mission has a total financial outlay of ₹25,060 crore.
• The primary objective of EPM is to provide affordable trade finance.
• The mission focuses particularly on MSMEs and labour-intensive sectors.
• Textiles are cited as a key labour-intensive sector under the mission.

Mission Architecture of EPM

• The Export Promotion Mission is structured around two distinct but integrated pillars.
• The first pillar is Niryat Protsahan, which focuses on financial support.
  • Financial instruments under Niryat Protsahan include interest subvention, collateral guarantees, and export credit cards for e-commerce exporters.
• The second pillar is Niryat Disha, which focuses on non-financial support.
  • Niryat Disha provides support for export quality improvement.
  • It also assists exporters with regulatory compliance and certification requirements.
  • The pillar supports international branding and logistics efficiency.

Significance of the Export Promotion Mission

• The Export Promotion Mission enhances global competitiveness of Indian exporters.
• The mission lowers the cost of exporting by reducing interest and collateral constraints.
• It expands access to formal export finance, especially for MSMEs.
• The mission strengthens India’s export brand through compliance and certification support.
• It promotes diversification of export markets through international branding initiatives.
• The mission supports job creation in labour-intensive industries.
• It also encourages first-time exporters to enter global markets.