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India Launches ₹7,295-Crore Export Credit Package for MSME Exporters

The package reintroduces interest support at 2.75% under the Export Promotion Mission with tighter targeting than the expired 3% scheme.

Overview

  • A 2.75% interest subvention on pre- and post-shipment rupee export credit is offered to eligible MSMEs, capped at ₹50 lakh per exporter for FY26, with rates reviewed in March and September and benchmarked to policy rates.
  • Collateral guarantee support via CGTMSE will cover up to 85% for micro and small exporters and up to 65% for medium exporters, with a maximum guaranteed exposure of ₹10 crore per exporter per year.
  • Benefits apply only to a notified positive list of HS six‑digit tariff lines covering about 75% of tariff lines, excluding restricted items, waste and scrap and PLI-covered products, while including defence and SCOMET goods.
  • Operational guidelines will be issued by the RBI for interest support and by CGTMSE for guarantees, and both interventions will begin with pilot rollouts and ongoing monitoring for refinement.
  • The six-year package allocates ₹5,181 crore for interest support and ₹2,114 crore for collateral guarantees, including roughly ₹850 crore to settle pending claims from the previous scheme and about ₹300 crore required this year.