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India Unveils ₹7,295-Crore Export Credit Package to Ease MSME Trade Finance

Operational guidelines will precede a pilot phase before the six-year program takes full effect.

Overview

  • The package sets aside ₹5,181 crore for an interest subvention at a base 2.75% on pre- and post-shipment rupee export credit and ₹2,114 crore for collateral support via CGTMSE.
  • Eligibility is restricted to a notified positive list covering about 75% of tariff lines, excluding restricted items, waste and scrap, and PLI-covered products, while including defence and SCOMET categories.
  • The subsidy carries a ₹50 lakh annual cap per exporter, with guarantee coverage up to 85% for micro and small firms and 65% for medium firms and a ₹10 crore per-firm exposure cap.
  • Subvention rates will be benchmarked to policy rates and reviewed each March and September, with an additional incentive for new and emerging markets to be notified subject to readiness.
  • Roughly ₹850 crore from the subvention allocation is reserved to settle claims from the previous scheme that ended in December 2024, with about ₹300 crore required in the current fiscal quarter.