Fashion
Indian government unveils new interventions to boost MSME exports
The new measures aim to address structural constraints faced by MSME exporters, including high cost of capital, limited access to trade finance, compliance burdens, logistics disadvantages and barriers to new market entry. Goyal said India recorded double-digit merchandise export growth in the first half of February, underscoring strong industry momentum.
Union Minister Piyush Goyal has launched seven new interventions under the Export Promotion Mission to boost MSME exports, taking 10 of 11 schemes operational.
The measures offer interest subvention, credit guarantees, logistics and compliance support, and overseas warehousing assistance.
Industry bodies welcomed the initiative aimed at lowering costs and expanding global market access for exporters.
The interventions are divided under two pillars: Niryat Protsahan, focused on financial enablers, and Niryat Disha, which strengthens the export ecosystem, the Ministry of Commerce and Industry said in a press release.
Under Niryat Protsahan, the government introduced support for export factoring with 2.75 per cent interest subvention and assistance capped at ₹50 lakh per MSME annually. Structured credit facilities for e-commerce exporters include a Direct E-Commerce Credit Facility of up to ₹50 lakh with 90 per cent guarantee cover, and an Overseas Inventory Credit Facility of up to ₹5 crore with 75 per cent guarantee coverage, along with interest subvention capped at ₹15 lakh per applicant annually. A third measure supports exporters entering new or high-risk markets through shared-risk and credit instruments.
Under Niryat Disha, Trade Regulations, Accreditation and Compliance Enablement (TRACE) will reimburse 60 to 75 per cent of eligible testing, inspection and certification costs, up to ₹25 lakh annually per Importer Exporter Code (IEC), to ease compliance. Facilitating Logistics, Overseas Warehousing and Fulfilment (FLOW) will provide up to 30 per cent of approved project costs for overseas warehousing and fulfilment infrastructure for up to three years. Logistics Interventions for Freight and Transport (LIFT) will reimburse up to 30 per cent of freight costs, capped at ₹20 lakh per IEC per year, for exporters in low export-intensity districts. Integrated Support for Trade Intelligence and Facilitation (INSIGHT) will offer up to 50 per cent project support for trade intelligence systems and district-level facilitation, with up to 100 per cent support for government-backed proposals.
Three other schemes for market access support, interest subvention for pre- and post-shipment credit, and collateral support are already operational. The mission is implemented by the Department of Commerce in co-ordination with key ministries, financial institutions and export bodies.
Industry associations and export promotion councils welcomed the move, expressing support for effective implementation to strengthen India’s position as a competitive global export hub.
Fibre2Fashion News Desk (CG)