The scheme at a glance
₹7,295 Cr in 4 numbers
₹7,295 Cr
Across two schemes over six years, FY 2025-26 to FY 2030-31.
2.75%
Base subvention on pre- and post-shipment rupee export credit for MSMEs.
Up to ₹10 Cr
Credit guarantee per firm under the Collateral Support component.
₹50 lakh / yr
Per-firm annual cap on interest subvention benefit.
The package sits inside India's broader Export Promotion Mission and is timed against a year of forex pressure, making MSME exporters a central pillar of the country's growth strategy.
What is inside the package
The two schemes that make up the ₹7,295 Cr package
Interest Subvention Scheme
Interest Subvention for Pre- and Post-Shipment Rupee Export Credit
- Base subvention of 2.75% on rupee export credit for eligible MSME exporters.
- Additional incentive for exports to under-represented or emerging markets.
- Annual benefit capped at ₹50 lakh per firm.
- Coverage extends to roughly 75% of India's tariff lines.
- Operationalised through banks under RBI guidelines.
Collateral Support Scheme
Credit Guarantee for Export-Linked Working Capital
- Up to ₹10 crore credit guarantee cover per firm.
- Targets export-linked working capital loans for MSMEs.
- Reduces lender risk so banks can extend collateral-free export credit.
- Works in addition to existing CGTMSE coverage.
- Implementation through DGFT-notified guidelines.
Side-by-side
Interest Subvention vs Collateral Support, which lever to pull
| Feature | Interest Subvention | Collateral Support |
|---|---|---|
| Outlay | ~₹5,181 Cr | ~₹2,114 Cr |
| Primary benefit | Lower interest rate | Loan without full collateral |
| Benefit value | 2.75% base subvention | Guarantee up to ₹10 Cr |
| Cap | ₹50 lakh per firm / year | Up to ₹10 Cr per firm |
| Loan type | Pre- & post-shipment rupee export credit | Export-linked working capital |
| Channel | Participating banks | Credit guarantee trustee |
Most MSME exporters will benefit from both, the subvention to cut interest cost on existing export credit, and the collateral guarantee to actually get the credit line approved in the first place.
Sectors most likely to gain
Who wins the most from the ₹7,295 Cr scheme
Engineering & components
MSMEs supplying machine parts, auto components and precision goods, a large share of India's labour-intensive export basket.
Textiles & garments
Working-capital-heavy units that benefit most when interest on export credit is lower.
Processed food & spices
Value-added agri exporters with seasonal cash flow and high inventory cycles.
Iron & steel SMEs
167 iron and steel products were explicitly included for interest subsidy, a clear sectoral win.
The same forex-pressured environment that prompted PM Modi's appeal to cut non-essential gold imports is now actively rewarding exporters. The full export angle is covered in our forex crisis 2026 export opportunity guide.
Eligibility
Who is eligible for the MSME export finance scheme
- Registered MSME (Udyam Registration is the gateway).
- Valid Importer-Exporter Code (IEC) from DGFT.
- Active export business with rupee export credit relationship at a participating bank.
- Compliance with KYC, GST and bank-level credit appraisal norms.
- Product lines that fall within the scheme's notified tariff coverage (~75% of tariff lines).
How to access the benefit
5 steps for an MSME exporter to use the ₹7,295 Cr scheme
- 1Get / verify Udyam + IEC. Confirm your Udyam registration is current and you have an active Importer-Exporter Code from DGFT.
- 2Identify export credit need. Quantify pre-shipment (packing credit) and post-shipment (bill discounting) requirements, this is what the scheme subsidises.
- 3Approach a participating bank. Public sector banks and major private banks operationalise the subvention. Submit export orders, project report and bank-format application.
- 4Stack with collateral cover. Where collateral is short, request the Collateral Support guarantee in addition to (or alongside) standard CGTMSE coverage.
- 5Track usage & cap utilisation. Keep records, the ₹50 lakh annual benefit cap is per firm. Plan disbursements through the year so you do not leave subsidy on the table.
New to exports? Start with our guide on how to register a company in India and on CGTMSE collateral-free MSME loans.
The next 6 years belong to MSME exporters
Get your business export-finance ready
The ₹7,295 Cr scheme runs through FY 2030-31. The exporters who set up Udyam, IEC, banking and the right file early will capture the maximum subvention before the cap fills. We get you ready.
- 700+ businesses helped across 28 states with ₹103+ Crore in government funding mobilised.
- Udyam, IEC, project report, bank file, prepared the way export lenders read.
- Scheme stacking advice: ₹7,295 Cr package + CGTMSE + RoDTEP + ECGC.
Closing thought
India is pricing exports lower so its MSMEs can compete higher
₹7,295 crore over six years is not a one-off subsidy, it is a deliberate re-pricing of MSME export credit. For a small or medium exporter, the math is simple: lower interest, broader collateral cover, more credit capacity. The only thing standing between an Indian MSME and that benefit is a clean Udyam, a live IEC and a bank file the lender can read in one sitting.
Disclaimer: Scheme outlay, subvention rate, sector coverage and benefit cap are based on publicly reported information at the time of announcement. Operational guidelines, eligible product lists and rates are notified by the RBI and DGFT and may be revised. Always verify the latest scheme circulars on the DGFT and RBI portals before applying.