The benefit at a glance
Iron and steel MSME exporters, the 2026 picture
167
Iron and steel tariff lines explicitly included under the interest subsidy.
2.75%
On pre- and post-shipment rupee export credit for eligible MSMEs.
₹50 lakh
Maximum interest subvention benefit per firm per year.
Up to ₹10 Cr
Separate guarantee available on export-linked working capital.
These benefits sit inside the larger ₹7,295 Cr MSME export finance scheme - the iron and steel inclusion is a specific sector spotlight within it.
Why steel MSMEs win the most
3 reasons this scheme is a margin lever for steel exporters
Secondary steel runs on credit
Iron and steel MSMEs hold large inventory and offer extended buyer terms, a 2.75% lower export credit cost flows straight to margin.
Global price competition is brutal
Chinese, Turkish and Vietnamese exporters compete on price. India lowering effective export finance cost helps Indian steel MSMEs hold price.
Engineering value chain wins too
Lower cost steel inputs ripple into auto components, machinery and structural fabrication, India's broader engineering MSME exporter base.
The 167-product universe
Indicative iron and steel categories under the subsidy
The 167 lines cut across primary, secondary and downstream steel. The official notified list lives at DGFT, the categories below give an indicative picture of where the scheme reaches.
| Category | Examples of products in scope |
|---|---|
| Primary steel | HR coils, CR coils, plates, billets, slabs, blooms |
| Long products | TMT bars, structural steel, angles, channels, beams, wire rods |
| Flat products | GP / GC / GI sheets, colour-coated sheets, tinplate |
| Stainless and alloy | Stainless sheets and pipes, alloy steel, special steel grades |
| Pipes and tubes | ERW, seamless, SAW pipes, welded tubes |
| Downstream and engineering | Fasteners, forgings, castings, structural fabrication |
Always confirm the latest notified tariff lines with the DGFT notification applicable on your shipment date.
Eligibility
Who can claim the iron and steel exporter interest subsidy
- Registered MSME with valid Udyam Registration Number.
- Active Importer-Exporter Code (IEC) from DGFT.
- Product line that falls within the 167 notified iron and steel tariff lines.
- Pre- or post-shipment rupee export credit relationship at a participating bank.
- Compliance with KYC, GST, BIS / quality standards as applicable to the product.
- Within the ₹50 lakh annual interest subvention benefit cap.
How to claim
5 steps for an iron and steel MSME to capture the benefit
- 1Map your products to notified lines. Pull the DGFT notification and identify which of your 4-digit / 8-digit HS tariff lines fall within the 167 listed products.
- 2Get Udyam and IEC tight. Confirm Udyam classification (Micro / Small / Medium) and ensure IEC reflects the steel HS lines you actually export.
- 3Open a participating bank account. Public sector banks are the natural channel for iron and steel MSME exporters, confirm scheme participation before drawing credit.
- 4Apply for pre- and post-shipment credit. Apply for packing credit against confirmed export orders and post-shipment finance against bills. The subvention is applied as a reduction in the effective interest rate.
- 5Stack collateral support and CGTMSE. Add the Collateral Support guarantee (up to ₹10 Cr) and / or a CGTMSE guarantee where collateral is tight. Many steel MSMEs can stack both.
For the bank file structure and how the collateral component works, see our guide on CGTMSE ₹10 Cr coverage 2026.
Steel runs on credit, and credit just got cheaper
Get your iron and steel export file scheme-ready
For an exporter doing ₹15-50 crore turnover, a 2.75% interest subvention plus a ₹10 Cr collateral cushion is genuinely material to margins and growth capacity. We get the file approved.
- 700+ businesses helped across 28 states with ₹103+ Crore in government funding mobilised.
- Udyam, IEC, HS line mapping, project report and bank file, exporter-grade.
- Scheme stacking, interest subvention + collateral cover + CGTMSE + ECGC.
Closing thought
India is competing for global steel demand, through cheaper export credit
The 167-product subsidy is a quiet, technical move with a loud commercial impact. It does not change the global steel price, it changes the cost at which an Indian MSME finances its export order. That difference shows up on the PandL every quarter, and over time it is the difference between a steel MSME that grows and one that stalls.
Disclaimer: The product scope (167 lines), subvention rate and benefit cap are based on publicly reported information at the time of the scheme announcement. Final notified tariff lines and operational guidelines are issued by DGFT and the RBI and may be revised. Always verify the latest circulars on the DGFT and RBI portals before drawing export credit.