New Delhi: The government has announced a major relief for exporters facing global uncertainty. Micro and small MSME businesses exporting iron and steel products will now get interest subsidy benefits. This means they can take loans at lower interest rates, reducing their overall cost of doing business.
However, medium-sized enterprises will not get this benefit. The scheme is strictly limited to micro and small units.
Coverage of 167 Products
According to the Directorate General of Foreign Trade (DGFT), the benefit will apply to exports of 167 specific iron and steel products.
This step is expected to help small exporters compete better in global markets by lowering financial pressure and improving pricing.
Part of Rs 7,295 Crore Export Package
This move is part of a larger Rs 7,295 crore government package announced earlier to boost exports.
- Rs 5,181 crore is allocated for interest subsidy
- Rs 2,114 crore is set aside for collateral support
The scheme will remain in force from 2025 to 2031, giving long-term support to exporters.
Restrictions on Baryte Exports
In a separate decision, the government has placed restrictions on the export of certain grades of baryte, a mineral used in industries like paint, plastic, and oil drilling.
Grade A and Grade B baryte are now in the “Restricted” category
Exporters will need special permission to export these grades
Grade CDW baryte remains in the “Free” category
Reason Behind the Move
The decision comes at a time when global trade is facing uncertainty, especially due to rising tensions in West Asia.
The government aims to support small exporters while also protecting key natural resources. By balancing exports and domestic needs, it is trying to strengthen India’s trade position.
Overall, these measures are seen as a positive step to help small businesses grow and remain competitive in challenging global conditions.
