New Delhi, Jan 2: The government on Friday announced a Rs 7,295 crore export support package, comprising a Rs 5,181 crore interest subvention scheme along with a Rs 2,114 crore collateral support, aimed at improving exporters’ access to credit. Both measures will be rolled out over a period of six years, from 2025 to 2031.
Interest subvention scheme details
Additional Secretary in the Commerce Ministry Ajay Bhadoo said these interventions will address exporters’ trade finance issues. Under the interest subvention scheme, exporters will receive a subsidy on pre- and post-shipment export credit. This is the second component of the Rs 25,060 crore Export Promotion Mission (EPM) approved in November 2025.
The first component, market access support with an outlay of Rs 4,531 crore, was rolled out on December 31, 2025.
Support for MSME exporters
The subvention scheme will help exporters from identified sectors avail rupee export credit at competitive rates at a time when global trade is facing headwinds. Under the scheme, the government will provide subsidy benefits in the range of 2.75 per cent to eligible MSME exporters. The annual benefit is capped at Rs 50 lakh per firm.
The detailed guidelines of the scheme will be released by the RBI, the implementing agency, along with the Directorate General of Foreign Trade (DGFT).
Collateral support for export credit
The government has also announced Rs 2,114 crore as collateral support for export credit. Under this measure, credit guarantee support will be provided to MSMEs for export-linked working capital loans. A collateral guarantee of up to Rs 10 crore per firm will be available under this support.
Coverage and exclusions
According to the DGFT, the interest subvention and collateral support will apply only to exports from a selected positive list of products. Defence and SCOMET (Special Chemicals, Organisms, Materials, Equipment and Technologies) products are covered under these measures.
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However, restricted items, waste and scrap, and production-linked incentive (PLI) covered items will remain outside the purview of the package.
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