The government on Friday announced a Rs 7,295-crore export support package to help exporters access cheaper and easier credit, with a focus on micro, small, and medium enterprises. The package includes a Rs 5,181-crore interest subsidy scheme and Rs 2,114 crore in collateral support, to be rolled out over six years from 2025 to 2031.
Commerce Ministry Additional Secretary Ajay Bhadoo said the measures would address trade finance challenges faced by exporters. Under the interest subsidy scheme, exporters will receive support on pre- and post-shipment loans, reducing borrowing costs. The scheme has been resumed after a one-year gap.
MSME exporters currently pay interest rates of 9.5 to 12.5 per cent for export credit. The subsidy, capped at 2.75 per cent, is expected to improve competitiveness in global markets affected by high US tariffs. The annual benefit will be limited to Rs 50 lakh per firm, with rates reviewed twice a year.
The government also announced collateral support for export credit, offering guarantees of up to Rs 10 crore per firm. Guarantee cover will be higher for smaller exporters to encourage bank lending. Exporters’ body FIEO welcomed the move, saying it will reduce credit costs nationwide.
