Govt Launches Key NIRYAT PROTSAHAN Measures to Boost MSME Exports, Trade Finance
The first intervention introduces an interest subvention scheme aimed at lowering the cost of export credit and easing working capital pressures for MSME exporters.
- Country:
- India
As part of the initial rollout of the Export Promotion Mission, the Government of India has launched two major interventions under the NIRYAT PROTSAHAN sub-scheme. These initiatives are designed to reduce the cost of exporting, ease financing constraints faced by MSMEs, and strengthen India’s export competitiveness across global markets.
1. Interest Subvention for Pre- and Post-Shipment Export Credit
The first intervention introduces an interest subvention scheme aimed at lowering the cost of export credit and easing working capital pressures for MSME exporters.
Key Features
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Interest subvention of 2.75% on pre- and post-shipment rupee export credit provided by eligible lending institutions.
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Provision for additional incentives for exports to under-represented or emerging markets, subject to readiness.
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Applicable only to exports falling under a notified positive list at the HS-6 digit level, covering ~75% of India’s tariff lines with high MSME participation.
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An annual cap of ₹50 lakh per IEC for FY 2025–26.
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Bi-annual review of subvention rates in March and September to align with global and domestic benchmarks.
Positive List Development
The positive list was prepared using a transparent, data-driven methodology, prioritising:
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Labour-intensive and capital-intensive sectors
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High MSME concentration
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Value addition potential
Restricted items, waste and scrap, and items under overlapping incentive schemes were excluded. Notably, defence and SCOMET-notified products were included to encourage strategic exports.
The Reserve Bank of India will issue detailed operational guidelines, followed by a pilot rollout to refine the scheme based on feedback.
2. Collateral Support for Export Credit via CGTMSE
The second intervention introduces a collateral guarantee mechanism to ease MSMEs’ access to export credit, implemented in partnership with the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
Key Features
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Up to 85% guarantee coverage for Micro and Small exporters
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Up to 65% coverage for Medium exporters
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Maximum guaranteed exposure: ₹10 crore per exporter per financial year
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Designed to complement existing credit guarantee frameworks and encourage banks to lend more to export-focused MSMEs
CGTMSE will issue detailed guidelines. The initiative will begin with a pilot phase, followed by broader integration under the restructured export promotion framework.
Strategic Objective: Lower Costs, Expand Finance, Diversify Markets
Both interventions under NIRYAT PROTSAHAN will be implemented in a pilot mode with continuous monitoring, enabling iterative improvements based on data and real-world challenges.
These measures aim to:
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Reduce the cost of exporting
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Improve access to trade finance
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Support first-time exporters
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Expand India’s presence in emerging and high-value global markets
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Promote value-added exports
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Enable MSMEs to participate more deeply in global value chains
Export Promotion Mission: A ₹25,060 Crore Push for Export-Led Growth
Approved by the Union Cabinet on 12 November 2025, the Export Promotion Mission has a total outlay of ₹25,060 crore for FY 2025–26 to FY 2030–31. It is jointly implemented by:
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Department of Commerce
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Ministry of MSME
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Ministry of Finance
The Mission is built on two integrated sub-schemes:
1. NIRYAT PROTSAHAN
Focus: Affordable and diversified trade finance — including interest subvention, collateral guarantees, and credit access.
2. NIRYAT DISHA
Focus: Non-financial enablers — including market access, branding, regulatory compliance, logistics, and trade intelligence.
Together, these schemes aim to strengthen MSMEs, drive export diversification, support innovation, and build a globally competitive export ecosystem.
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