New Delhi [India], January 2 : The Directorate General of Foreign Trade (DGFT) has issued details of key financial support measures under the 'NIRYAT PROTSAHAN' initiative, aimed at strengthening export competitiveness of Micro, Small and Medium Enterprises (MSMEs).
The initiative focuses on improving access to affordable export credit and reducing financial constraints faced by MSME exporters.
As per the briefing addressed by Ajay Bhadoo, Additional Secretary, Ministry of Commerce and Industry and Lav Agarwal, Additional Secretary & Director General, DGFT, one of the major components is the Interest Subvention for Pre- and Post-Shipment Rupee Export Credit, which enables MSME exporters to avail export finance at rates below market interest levels.
The scheme is jointly implemented by DGFT and the Reserve Bank of India (RBI) and applies to both pre-shipment and post-shipment export credit in rupees. The interest subvention is benchmarked against repo rates of India and comparable economies.
Under the scheme, eligible MSME exporters will receive an interest subvention of 2.75 per cent, with an additional incentive proposed for exports to new and emerging markets, the details of which will be notified later. The government has earmarked a tentative budgetary outlay of Rs 5,181 crore for this component over six years from FY 2025-26 to FY 2030-31, with the annual benefit capped at Rs 50 lakh per exporting firm.
The scheme will benefit MSMEs engaged in the export of goods covered under a notified positive list of Harmonised System (HS) six-digit tariff lines, accounting for nearly 75 per cent of India's total tariff lines. To be eligible, exporters must hold a valid Importer Exporter Code (IEC) and Udyam Registration.
To avail the benefit, exporters are required to file an intent on the DGFT portal, upon which a Unique Identification Number (UIN) will be generated. Each UIN will be linked to a single bank, and exporters must approach the corresponding bank while applying for export credit. Banks will sanction loans based on their internal due diligence and submit interest subvention claims on the DGFT portal.
The RBI will approve and disburse the eligible subvention amount, with claim settlements to be carried out on a monthly basis. Detailed operational guidelines are expected to be issued by the RBI.
Another important component under NIRYAT PROTSAHAN is Collateral Support for Export Credit, which provides credit guarantee support for export-linked working capital loans to MSMEs. The scheme offers an additional 10 per cent guarantee coverage over the existing 75 per cent coverage under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) for micro and small enterprises. It also extends guarantee support to medium enterprises, which were previously outside the scope of CGTMSE.
The government has proposed a tentative budgetary outlay of Rs 2,114 crore for the collateral support component over the six-year period from FY 2025-26 to FY 2030-31.
Both the interest subvention and collateral support measures apply only to exports from a selected positive list of products, which has been designed using a robust methodology to prioritise sectors with high MSME participation, including labour-intensive and capital-intensive industries.
The list excludes restricted and prohibited items, waste and scrap, PLI-covered products, and products already excluded under RoDTEP and RoSCTL, in order to avoid overlap and promote higher value addition. Defence and SCOMET products, however, have been included.
According to DGFT, the targeted design of the positive list and financial incentives under NIRYAT PROTSAHAN is intended to promote MSME exports, support employment generation, and enhance value addition in the Indian economy.
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