Archive · 3 Jan 2026
India Launches Rs 7,295-Crore Export Support Package
India has announced a big plan to help small and medium-sized businesses (MSMEs) that sell things to other countries.
The government will give them money to make loans cheaper and easier to get.
This plan has two parts: one part gives money to reduce the interest on loans, and the other part helps businesses that don't have enough things to use as collateral for loans.
The government will check every six months to make sure everything is working well.
This plan will help Indian products be more competitive in the global market.
India announced a Rs 7,295-crore export support package, including a Rs 5,181-crore interest subvention scheme and a Rs 2,114-crore collateral support.
The interest subvention scheme provides a 2.75% subsidy on pre- and post-shipment export credit, capped at ₹50 lakh per firm annually.
The subvention rate is floating and linked to the repo rate, reviewed every six months.
The government has allocated ₹5,181 crore for the scheme over six years, up to FY31.
The collateral support provides up to ₹10 crore in collateral guarantee per firm, with 85% coverage for micro and small exporters and 65% for medium exporters.
- Who
- Indian government and MSME exporters
- What
- Launch of a Rs 7,295-crore export support package
- When
- Recently announced (specific date not mentioned)
- Where
- India
- Why
- To improve exporters’ access to credit and make trade finance cheaper and more accessible for MSME exporters
Government and Exporters
Banks and Financial Institutions
Collateral Requirements
Government and Exporters
The government aims to reduce collateral requirements to make credit more accessible for MSME exporters.
Banks and Financial Institutions
Banks may have concerns about increased risk due to reduced collateral requirements.
- Total Package
- ₹7,295 crore
- Interest Subvention Scheme
- ₹5,181 crore
- Collateral Support
- ₹2,114 crore
- Interest Subvention Rate
- 2.75%
- Annual Cap per Firm
- ₹50 lakh
- Collateral Guarantee per Firm
- Up to ₹10 crore
- Guarantee Coverage for Micro/Small Exporters
- Up to 85%
- Guarantee Coverage for Medium Exporters
- Up to 65%
- Duration
- Six years (2025-31)
- Eligible Exporters
- MSMEs exporting under notified positive list
- Subvention Benchmark
- Repo rates in India and comparable economies
Sources
India rolls out two more components under Export Promotion Mission
Govt Announces ₹7,295 Crore Export Support Package To Boost Exporters’ Access To Credit
Govt announces Rs 7,295-cr export package to improve exporters’ access to credit
Export Promotion Mission: Govt rolls out interest subvention, collateral guarantee for exporters
Interest Subvention Re-launched with Lesser Rate, Allocation, Fewer HS Codes
Centre rolls out interest support, credit guarantee to push MSME exports
Measures announced to reduce credit costs of exporters
Govt’s Rs 7,295-cr export package to improve exporters’ access to credit
