DGFT Launches 2.75% Interest Subvention 226 Page Scheme for MSME Exporters Under Niryat Prothshan

· Only 4139 Codes Out of 12,000 Covered, Steel Left Out

· RBI to Reimburse Subvention to Respective Banks who Credit Exporter Upfront

Ø ANNEXURE-I To DRAFT TRADE NOTICE PROVISIONS FOR FOREIGN TRADE POLICY (FTP)

· Section X- Interest Subvention Support for Pre- and Post Shipment Export Credit

· DRAFT PROVISIONS FOR HANDBOOK OF PROCEDURES (HBP)

· Eligibility, Scope and Coverage

· Guidelines for Interest Subvention Support

Ø ANNEXURE-II to the TRADE NOTICE

· List of Tariff Lines Eligible for Interest Subvention for Pre and Post Shipment Export Credit

· Positive List of 4139 tariff lines at HS Six-digit Level

Ø ANNEXURE-III to the TRADE NOTICE

· Intent Procedure for Support for Interest Subvention Component

The Directorate General of Foreign Trade (DGFT) has launched an Interest Subvention scheme for pre- and post-shipment rupee export credit under the Export Promotion Mission – Niryat Prothshan, effective 2 January 2026, to ease working-capital constraints for MSME exporters .

Key Highlights:

· Subvention Rate: 2.75% per annum on eligible pre- and post-shipment rupee export credit.

· Eligibility: MSME manufacturer and merchant exporters with valid IEC and Udyam registration, exporting products listed in a positive list of HS 6-digit tariff lines.

· Annual Cap: Maximum benefit of ₹50 lakh per MSME exporter per financial year.

· Coverage: Only export credit extended as per RBI Master Directions qualifies.

· Implementation: Operated through RBI on a pilot basis; banks pass the benefit upfront and claim reimbursement from RBI.

· Process: MSMEs must file an online intent on the DGFT portal to generate a UIN, linked to the lending bank.

· Governance: A Sub-Committee on Trade Finance will monitor implementation; guidelines will be refined post stakeholder feedback.

· Consultation: Stakeholders invited to submit comments within 30 days, concurrent with pilot rollout.

Objective:
To provide a rules-based, transparent interest relief focused solely on reducing credit costs—not linked to export performance—thereby improving liquidity and competitiveness of MSME exporters.

[Trade Notice No. 20/2025-26 Dated: 02 January 2026]

Subject: Launch of Interest Subvention for Pre- and Post- Shipment Export Credit under EXPORT PROMOTION MISSION – NIRYAT PROTHSAHAN

The Interest Subvention for Pre- and Post- Shipment Export Credit intervention under the EXPORT PROMOTION MISSION – NIRYAT PROTHSAHAN is hereby launched with immediate effect to facilitate improved access to pre- and post-shipment rupee export credit for MSME exporters by reducing the cost of such credit and provide a rules-based and transparent interest-relief mechanism aimed at enhancing liquidity for MSME exporters and enabling them to meet working-capital requirements efficiently.

The detailed Guidelines for implementation of Interest Subvention for Pre- and Post- Shipment Export Credit are enclosed in the Annexure-I.

2. Implementation Framework and Key Benefits for Exporters

The intervention is being operationalised through the Reserve Bank of India on a pilot basis. Salient features for exporters include:

i. The rate of interest subvention @ 2.75 % per annum will be available on Pre Shipment Rupee Export Credit and Post Shipment Rupee Export Credit for Micro, Small Enterprises, and Medium Enterprises;

ii. An MSME exporter may receive a maximum subvention benefit of Rs 50 lakh per financial year.

iii. Support limited to export credit extended by lending institutions in accordance with the Reserve Bank of India’s Master Directions on Pre- and Post-Shipment Export Credit;

iv. Applicability to MSME manufacturer exporters and merchant exporters under the notified positive list of HSN six-digit tariff lines.

3. The detailed Guidelines for Interest Subvention for Pre- and Post- Shipment Export Credit are enclosed at Annexure-I. The positive list of eligible HSN six-digit tariff lines is enclosed at Annexure-II. The procedure for online filing of intent by eligible MSME exporters on the DGFT portal, including step-by-step application requirements, is enclosed at Annexure-III.

4. Pilot Roll-out and Stakeholder Consultation

The component is being implemented on a pilot basis to enable early access for exporters and to facilitate stakeholder feedback. In terms of paragraph 1.07A of the Foreign Trade Policy (FTP) 2023, the enclosed Guidelines are also being issued for stakeholder consultation.

Accordingly, all concerned stakeholders are invited to submit comments and suggestions on the draft Guidelines within 30 days from the date of issuance of this Trade Notice at epm- dgft@gov.in.

5. The consultation process shall run concurrently with the pilot implementation. Feedback received from stakeholders, along with operational learnings from the pilot phase, shall be examined in a structured manner. Based on the same, the Guidelines shall be suitably refined and thereafter formalised through appropriate notifications under the FTP/HBP framework.

This Trade Notice is issued with the approval of the Competent Authority.

(Issued from F.No. 01/02/48/AM-26/EPM)