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India Launches Rs 7,295-Crore Interest Support and Credit Guarantee to Lift MSME Exports

Operational rules will follow a pilot rollout overseen by RBI, DGFT, CGTMSE with biannual rate reviews.

Overview

  • The interest subvention sets a base 2.75% support on pre- and post-shipment rupee export credit for eligible MSMEs, floating with repo-linked benchmarks and reviewed every March and September.
  • Benefits apply to a DGFT positive list covering about 75% of tariff lines, with an annual cap of ₹50 lakh per firm and a planned extra incentive for new or emerging markets to be notified.
  • A CGTMSE-backed collateral facility offers up to 85% guarantee cover for micro and small exporters and 65% for medium firms, with guaranteed exposure capped at ₹10 crore per exporter per year.
  • Funding includes ₹5,181 crore for interest support and ₹2,114 crore for collateral guarantees through FY31, with about ₹850 crore earmarked to settle claims under the lapsed 3% scheme and roughly ₹300 crore estimated for the current year.
  • The measures constitute the second component of the ₹25,060-crore Export Promotion Mission after last week’s market access rollout, and industry groups expect easier finance even as impact depends on final guidelines and bank pass-through.