The Government of India has launched Interest Subvention Support for Pre- and Post-Shipment Rupee Export Credit for eligible Micro, Small and Medium Enterprise (MSME) exporters under the Export Promotion Mission – Niryat Prothsahan, with immediate effect. The initiative is aimed at enhancing access to affordable export credit, improving liquidity, and addressing working capital constraints faced by MSME exporters.
The scheme has been notified by the Directorate General of Foreign Trade (DGFT), Department of Commerce, Ministry of Commerce & Industry, vide Trade Notice No. 20/2025-26 dated 02nd January 2026.
Under the intervention, MSME manufacturer exporters and merchant exporters will be eligible for interest subvention at the rate of 2.75 per cent per annum on both pre-shipment and post-shipment rupee export credit. The maximum interest subvention benefit admissible to an MSME exporter shall be ₹50 lakh per financial year. The support will be applicable only 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.
The scheme is being operationalised through the Reserve Bank of India (RBI) on a pilot basis. Lending institutions will pass on the interest subvention benefit upfront to eligible exporters and subsequently claim reimbursement from RBI as per the prescribed operational framework. This ensures a transparent, rules-based and efficient delivery mechanism without linkage to export performance, pricing, quantities exported or any export-contingent conditions.
Interest subvention support will be available only for exports under a notified positive list of HSN six-digit tariff lines, which will be reviewed periodically based on objective parameters such as MSME concentration, labour intensity and sectoral export characteristics. The initiative is designed to remain compliant with international trade obligations and avoid any prohibited export-contingent subsidy.
Eligible MSME exporters are required to file an online declaration of intent on the DGFT portal prior to availing export credit. Upon submission, a Unique Identification Number (UIN) will be generated and linked to the exporter’s bank account, enabling smooth processing and monitoring of subvention claims.
The Guidelines for Interest Subvention Support have also been issued for stakeholder consultation in terms of the Foreign Trade Policy 2023. Stakeholders may submit comments and suggestions within 30 days of issuance of the Trade Notice. The consultation process will run concurrently with the pilot implementation, and feedback received along with operational learnings will be examined before formalising the scheme through appropriate notifications.
The initiative is expected to significantly reduce the cost of export finance for MSMEs, strengthen their competitiveness in global markets, and support sustained growth of India’s exports.
The Trade Notice can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/01/Trade-Notice-Interest-Subvention-signed.pdf
