The Government of India has launched a new initiative titled “Support for Emerging Export Opportunities” under the Export Promotion Mission (EPM) – NIRYAT PROTSAHAN to strengthen India’s export competitiveness in under-served and high-risk global markets. The initiative has been notified by the Directorate General of Foreign Trade (DGFT), Department of Commerce, Ministry of Commerce & Industry through Trade Notice No. 32/2025-26 dated 6th March 2026, issued from Vanijya Bhawan, New Delhi. The intervention has been implemented prospectively with immediate effect and aims to facilitate enhanced global trade connectivity and financial liquidity for exporters, particularly Micro, Small and Medium Enterprises (MSMEs).
The initiative seeks to enhance confidence in trade settlement mechanisms and improve access to trade finance for exporters operating in markets where banking lines and financial support remain constrained. By providing risk-sharing support backed by the Government of India, the scheme aims to strengthen the ability of banks to support cross-border transactions and encourage partnerships between Indian banks and overseas financial institutions. The measure is expected to particularly benefit MSMEs involved in international value chains by enabling them to expand exports to markets that currently remain under-served due to financial or institutional constraints.
Under the intervention, the Government will provide risk-sharing support for trade finance transactions facilitated through scheduled commercial banks. The support will be extended through the Export-Import Bank of India (Exim Bank) in coordination with the National Credit Guarantee Trustee Company (NCGTC). This framework will help exporters access non-recourse trade finance instruments from banks, thereby mitigating risks associated with cross-border trade and enhancing credit availability for export transactions in emerging markets.
The initiative will initially be implemented on a pilot basis to enable feedback, institutional learning and refinement of the operational framework. Detailed provisions relating to the policy framework, operational guidelines, governance structure and procedures for lending institutions have been provided in annexures accompanying the Trade Notice. Stakeholders have also been invited to provide comments and suggestions on the guidelines within 30 days from the date of issuance of the Trade Notice, in accordance with Paragraph 1.07A of the Foreign Trade Policy (FTP) 2023.
Eligibility under the scheme will be limited to MSMEs engaged in international value chains that possess a valid Importer-Exporter Code (IEC) and a valid MSME Udyam Registration Number, provided they are not included in the Denied Entity List. The scheme will support exports of all goods permitted under the Foreign Trade Policy, subject to a negative list of excluded products and transactions. Support will also be limited to transactions involving identified under-served markets, which will be reviewed periodically based on India’s trade potential and integration with these markets.
The intervention will support several non-recourse trade finance mechanisms, including Stand-by Letters of Credit (SBLC), Risk Participation (RP), Irrevocable Reimbursement Undertaking (IRU), Letter of Credit Confirmation, Letter of Credit Negotiation, and Usance Payable at Sight Letter of Credit (UPAS LC). These instruments will help reduce payment risks in international trade and enhance the ability of Indian exporters to secure financing for exports to emerging markets.
Under the scheme, Exim Bank may extend up to 100 percent cover for eligible trade finance instruments, while the Government-backed trust mechanism managed by NCGTC will provide risk-sharing support ranging from 10 percent to 80 percent of the transaction value, depending on the risk category determined through a comprehensive risk assessment model. Transactions falling below the minimum risk score threshold will not be eligible for support under the intervention.
To ensure prudent risk management, the scheme establishes several exposure limits. The maximum liability permissible under the intervention will be capped at ten times the corpus fund, with additional caps on country-wise exposure, exporter-wise exposure, transaction-wise exposure and issuing bank-wise exposure. These safeguards are designed to ensure financial sustainability while expanding trade finance support to new markets.
The governance structure of the initiative provides for the constitution of a Sub-Committee on Trade Finance, comprising representatives from the Ministry of MSME, Department of Commerce, DGFT, Department of Financial Services, Exim Bank, NCGTC, and other financial institutions and industry bodies. The committee will provide strategic oversight, recommend risk-sharing levels, determine exposure limits, and review the inclusion of additional trade finance instruments under the scheme.
The operational process requires exporters to submit an online application through the DGFT portal indicating their intent to avail support under the scheme. Upon submission, a Unique Identification Number (UIN) will be generated, which must be used while approaching partner banks for trade finance assistance. Partner banks will assess the exporter’s creditworthiness and apply to Exim Bank for risk-sharing support under the scheme. Exim Bank will conduct due diligence and provide in-principle approval, while NCGTC will issue the corresponding guarantee coverage in accordance with the scheme guidelines.
The scheme also identifies a wide range of target markets across Africa, Asia, Latin America, and the Europe & CIS region where exporters may receive support under the initiative. These include several emerging and developing economies such as Kenya, Nigeria, Bangladesh, Vietnam, Argentina, Brazil, Kazakhstan and Uzbekistan, among others, as listed in the annexure to the guidelines.
The Government expects that the Support for Emerging Export Opportunities initiative will strengthen India’s export ecosystem by improving access to trade finance, reducing transaction risks, and enabling MSMEs to expand into new and under-served international markets. The initiative forms an important component of the broader Export Promotion Mission – NIRYAT PROTSAHAN, aimed at enhancing India’s global trade integration and export competitiveness.
The Trade Notice can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/03/Guidelines-Support-for-Emerging-Export-Opportunities.pdf
