The Government of India has taken a significant step to boost exports from Micro and Small Enterprises (MSEs) by extending interest subvention benefits to a wider range of steel products under Chapter 72. The decision is expected to enhance competitiveness and ease credit costs for small exporters in the iron and steel sector.
Trade Notice Details
The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce & Industry, has issued Trade Notice No. 01/2026-27 dated 20th April 2026 in this regard.
Key Announcement
- In continuation of earlier guidelines issued under the Export Promotion Mission (EPM), the Government has included additional tariff lines under Chapter 72 (Iron and Steel) for availing interest subvention support on pre- and post-shipment export credit.
- As per the notification, 167 tariff lines at HS six-digit level have been added under a newly introduced Annexure-IIA, making them eligible for interest subvention exclusively for Micro and Small Enterprises (MSEs).
- It has been explicitly clarified that Medium Enterprises will not be eligible for interest subvention benefits under these newly added tariff lines.
Prospective Applicability
- The benefit under Annexure-IIA shall be prospective in nature, meaning interest subvention will be available only for eligible export credit disbursed on or after the date of issuance of this Trade Notice.
- This aligns with the principle of non-retrospective applicability, ensuring clarity and transparency in implementation.
Continuity of Existing Provisions
- All other provisions under earlier Trade Notices—namely Trade Notice No. 20/2025-26 (dated January 02, 2026), Trade Notice No. 22/2025-26 (dated January 16, 2026), and Trade Notice No. 33/2025-26 (dated March 20, 2026)—shall remain unchanged.
Sectoral Impact
- The newly added tariff lines cover a broad range of iron and steel products, including:
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- Pig iron and ferro-alloys
- Ferrous waste and scrap
- Flat-rolled and semi-finished steel products
- Bars, rods, sections, and wires
- Stainless steel and alloy steel products
(As detailed in Annexure-IIA spanning 167 HS codes in the attached document)
Objective of the Move
- The inclusion aims to:
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- Reduce cost of export credit for small exporters
- Enhance global competitiveness of MSME steel exporters
- Promote value-added exports in the iron and steel sector
- Support the broader goals of Export Promotion Mission (EPM)
The Trade Notice can be accessed at: https://content.dgft.gov.in/Website/TNCh72+Inclusion.pdf
