Govt rolls out ₹7.3K cr schemes to boost MSME financing

Plan to help small exporters over a period of six years

- SHREYA NANDI New Delhi, 2 January

The government on Friday launched two measures - on interest subvention and collateral support with an allocation of The Free Press Journal - Mumbai ₹7,295 crore for a six-year period (FY26-31) to give small exporters better access to trade finance.

The scheme titled "Interest Subvention for Pre- and Post-Shipment Rupee Export Credit" will enable micro, small, and medium enterprises (MSMEs) to access export credit at competitive rates, below market interest rates.

The tentative budgetary outlay for the scheme is ₹5,181 crore over six years. To begin with, arrears worth ₹830 crore will be cleared.

"A base interest subvention of 2.75 per cent has been provided, with a provision for additional incentive for exports to notified under-represented or emerging markets, subject to operational readiness," the Department of Commerce said in a statement.

The schemes have been launched under the ₹25,060 croreexport-promotion mission, approved by the Union Cabinet in November.