Background of the New Schemes
Two Credit Linked Sub Schemes Under Export Promotion Mission: In January 2026, the Government of India launched two pilot credit-linked sub schemes under the Niryat Protsahan component of the Export Promotion Mission.
These schemes aim to reduce the cost of export finance and improve credit access, especially for MSMEs and labour-intensive sectors. The launch aligns with India’s long-term strategy of strengthening export competitiveness.
Static GK fact: Export credit refers to short-term finance provided to exporters to support goods production and shipment.
Interest Subvention for Pre and Post Shipment Export Credit
The first scheme provides an interest subvention of 2.75% as a base rate on rupee-denominated export credit. This applies to both pre-shipment and post-shipment export loans.
An additional incentive is offered for exports to notified under-represented or emerging markets, encouraging market diversification.
The annual financial cap under this scheme is ₹50 lakh per exporter for FY 2025–26. Eligibility is restricted to exports listed under a notified positive list of tariff lines at the HS 6-digit level, covering nearly 75% of India’s tariff lines.
Static GK Tip: The Harmonised System (HS) is a globally standardised classification system for traded goods, administered by the World Customs Organization.
Collateral Support for Export Credit
The second scheme focuses on collateral-free export credit support. It is implemented in partnership with the Credit Guarantee Fund Trust for Micro and Small Enterprises.
Under this scheme, guarantee coverage is provided up to 85% for Micro and Small exporters and 65% for Medium exporters. This reduces lender risk and improves credit flow to smaller exporters.
The maximum guaranteed exposure is capped at ₹10 crore per exporter per financial year. Eligibility conditions remain the same as the interest subvention scheme.
Static GK fact: Credit guarantee schemes encourage lending by sharing default risk between the government and financial institutions.
Export Promotion Mission Framework
The Export Promotion Mission was launched in November 2025 with a six-year duration from FY 2025–26 to FY 2030–31. The mission has a total financial outlay of ₹25,060 crore.
Its primary objective is to provide affordable trade finance, particularly for MSMEs, first-time exporters, and labour-intensive sectors such as textiles, leather, and food processing.
Dual Pillar Architecture of EPM
The mission is structured around two integrated pillars.
Niryat Protsahan focuses on financial support through interest subvention, collateral guarantees, and export credit cards for e-commerce exporters.
Niryat Disha provides non-financial support, including assistance for export quality standards, regulatory compliance, branding in international markets, and logistics efficiency.
Static GK Tip: Non-financial export support improves market access by addressing quality and compliance barriers.
Significance for India’s Export Ecosystem
The mission lowers the cost of exporting and expands access to institutional finance, improving global competitiveness of Indian exporters.
It also supports export market diversification, reducing dependence on traditional markets. By prioritising labour-intensive industries, the mission contributes to employment generation and inclusive growth.
Static Usthadian Current Affairs Table
Two Credit Linked Sub Schemes Under Export Promotion Mission:
| Topic | Detail |
| Scheme Component | Niryat Protsahan under Export Promotion Mission |
| Interest Subvention Rate | 2.75% on rupee export credit |
| Annual Cap | ₹50 lakh per exporter (FY 2025–26) |
| Guarantee Coverage | 85% for Micro & Small, 65% for Medium exporters |
| Maximum Guaranteed Exposure | ₹10 crore per exporter per year |
| Mission Duration | FY 2025–26 to FY 2030–31 |
| Total Outlay | ₹25,060 crore |
| Key Beneficiaries | MSMEs, labour-intensive sectors, first-time exporters |
