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Export boost: Center announces seven measures to support exporters and MSMEs & more related News Here

Export boost: Center announces seven measures to support exporters and MSMEs

The government on Friday announced seven measures, including credit support for e-commerce exporters and support for alternative trade finance instruments, aimed at boosting India’s outbound shipments and strengthening export competitiveness.These initiatives are part of the Rs 25,060 crore export promotion mission, under which three of the 10 proposed components were rolled out in January itself, PTI reported. To support exporters using digital channels, the Commerce Ministry launched credit facilities backed by interest subvention and partial credit guarantee. The Direct E-Commerce Credit facility will provide assistance up to Rs 50 lakh with 90 per cent guarantee coverage.The ministry said the Overseas Inventory Credit Facility will provide assistance up to Rs 5 crore with 75 per cent guarantee coverage, along with an interest subvention of 2.75 per cent, subject to an annual limit of Rs 15 lakh per applicant.To promote export factoring as an affordable working capital solution for MSMEs, an interest subvention of 2.75 per cent on factoring cost will be provided for eligible transactions made through RBI or IFSA-recognised entities. Assistance will be limited to Rs 50 lakh per MSME annually and will be processed through digital claim mechanism to ensure transparency and timely disbursement.To help exporters access new or higher-risk markets, the government will support alternative trade instruments through shared-risk and credit enhancement mechanisms such as confirmation and negotiation of letters of credit.Under the Trade Regulation, Accreditation and Compliance Enablement (TRACE), exporters will receive assistance in meeting international testing, inspection, certification and conformity requirements. Partial reimbursement of 60 per cent under the Positive List and 75 per cent under the Priority Positive List will be provided for eligible expenses, subject to an annual limit of Rs 25 lakh per Import Export Code (IEC).The ministry also announced Facilitating Logistics, Overseas Warehousing and Fulfillment (Flow), which will enable exporters to access overseas warehousing and fulfillment infrastructure, including e-commerce export centers integrated with global distribution networks. Assistance up to 30 per cent of the approved project cost will be provided for a maximum of three years, subject to prescribed limits and MSME participation norms.For exporters from North-East and hilly areas, Logistics Intervention for Loading and Transportation of Goods (LIFT) was introduced to reduce geographical disadvantages. The scheme provides partial reimbursement of up to 30 per cent of eligible freight expenditure, limited to Rs 20 lakh per IEC per financial year.Financial assistance will also be provided under Support for Trade Intelligence and Facilitation (INSIGHT), which is generally limited to 50 per cent of the project cost, up to 100 per cent support for proposals from Central and State Government institutions and Indian Missions abroad, subject to notified limits.Through these coordinated financial and ecosystem interventions, the government aims to reduce the cost of capital, diversify trade finance instruments, improve compliance readiness, address logistics challenges and strengthen overseas market integration for MSMEs.Launching the measures, Commerce and Industry Minister Piyush Goyal said they are aimed at empowering micro, small and medium enterprises (MSMEs) for global markets.He said India’s expanding network of free trade agreements (FTAs) has significantly improved market access for exporters, noting that about 70 per cent of global GDP and two-thirds of global trade is now accessible to India through nine concluded FTAs, including the first tranche of the bilateral trade agreement with the United States.These agreements provide preferential access to all sectors in 38 developed and emerging economies.Emphasizing that the benefits of global trade should reach every MSME, startup and entrepreneur, Goyal said the mission seeks to promote new products, services and exporters while enabling Indian businesses to access new markets.He said India has registered double digit growth in merchandise exports in the first half of February.Commerce Secretary Rajesh Aggarwal said the intervention will help exporters reach new markets and promote exports of new products. He also urged the Export Promotion Councils to prepare communication packages to take advantage of the free trade agreements finalized by India.According to official data, during April-January of financial year 2025-26, India’s exports grew by 2.22 per cent to $366.63 billion, while imports increased by 7.21 per cent to $649.86 billion, resulting in a trade deficit of $283.23 billion during the nine-month period.

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