A recent trade notice from the Directorate General of Foreign Trade (DGFT) designates EXIM Bank as the new implementing agency for the Interest Subvention Support Scheme for exporters, while all other scheme provisions remain unchanged.
The Interest Subvention Scheme was originally launched on a pilot basis through the RBI. This shift comes after a decision made during the 4th Steering Committee meeting regarding the scheme, which has now received formal approval for the transition.
Starting April 1, 2026, EXIM Bank will be responsible for operationalization, portal oversight, verification, and claim settlement procedures, whereas any legacy claims from January to March 2026 will still be handled by the RBI.
Banks are now required to submit reimbursement claims for the interest subsidy to EXIM Bank, and there will be no modifications to the interest subsidy scheme for MSME exporters.
On February 20, 2026, India unveiled seven new initiatives under the EPM aimed at enhancing the capabilities of Micro, Small and Medium Enterprises (MSMEs) in the global market. These initiatives are designed to tackle the challenges faced by Indian exporters, promote expansive and inclusive export growth, and bolster India’s global competitiveness in exports.
The EPM amalgamates financial support mechanisms under ‘Niryat Protsahan’ and trade ecosystem assistance under ‘Niryat Disha’, all coordinated through a unified and digitally tracked framework.
The Mission is administered by the Department of Commerce in collaboration with the Ministry of MSME, Ministry of Finance, EXIM Bank, the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), the National Credit Guarantee Trustee Company Limited (NCGTC), regulated lending bodies, Indian Missions abroad, Export Promotion Councils (EPCs), and industry partners.
The initiatives focus on alleviating structural challenges encountered by MSMEs, which include high capital costs, restricted access to diverse trade financing options, compliance challenges in global markets, logistical hurdles, and barriers to market entry.
Interventions under Niryat Protsahan
Support for Alternative Trade Instruments (Export Factoring)
This initiative encourages export factoring as a cost-effective working capital solution for MSMEs. An interest subvention of 2.75% will be offered on the factoring costs for eligible transactions conducted through recognized RBI/IFSCA entities. Support is limited to ₹50 lakh per MSME annually and will be processed via a digital claims mechanism to ensure transparency and prompt disbursement.
Credit Assistance for E-Commerce Exporters
To aid exporters utilizing digital means, structured credit facilities are being introduced with interest subventions and partial credit guarantees. The Direct E-Commerce Credit Facility will offer up to ₹50 lakh with a 90% guarantee coverage. The Overseas Inventory Credit Facility will provide support of up to ₹5 crore with a 75% guarantee coverage. An interest subvention of 2.75% will be available, subject to an annual limit of ₹15 lakh per applicant.
Support for Emerging Export Opportunities
This initiative allows exporters to enter new or higher-risk markets through various shared-risk and credit instruments, thereby bolstering exporter confidence and liquidity.
Interventions under Niryat Disha
Trade Regulations, Accreditation & Compliance Enablement (TRACE)
TRACE aids exporters in fulfilling international testing, inspection, certification, and other compliance requirements. Eligible testing, inspection, and certification costs will receive partial reimbursement of 60% under the Positive List and 75% under the Priority Positive List, subject to an annual cap of ₹25 lakh per IEC.
Facilitating Logistics, Overseas Warehousing & Fulfilment (FLOW)
FLOW helps exporters in accessing overseas warehousing and fulfillment resources, including E-Commerce Export Hubs that work with global distribution networks. Assistance of up to 30% of the approved project cost will be granted for a maximum of three years, within specified ceilings and MSME participation guidelines.
Logistics Interventions for Freight & Transport (LIFT)
LIFT addresses geographical disadvantages incurred by exporters located in low-export-intensity districts. A partial reimbursement of up to 30% of eligible freight costs will be available, with a limit of ₹20 lakh per IEC annually.
Integrated Support for Trade Intelligence & Facilitation (INSIGHT)
INSIGHT enhances exporter capacity-building, facilitates district- and cluster-level initiatives under the Districts as Export Hubs program, and develops trade intelligence systems. Financial support is up to 50% of project costs, with potential full support for proposals from Central and State Government institutions and Indian Missions abroad, subject to established limits.
These coordinated financial and ecosystem interventions reflect the Government’s commitment to lowering capital costs, diversifying trade finance options, enhancing compliance readiness, tackling logistical constraints, and improving overseas market integration for MSMEs.
