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India Boosts MSME Exports with ₹25,060 Cr Mission
7 Jan
Summary
- India launched a ₹25,060-crore mission to boost MSME exports.
- The five-year program aims to reduce export costs and improve credit access.
- It combines market access support with cheaper export credit for SMEs.
India has launched a ₹25,060-crore Export Promotion Mission, set to run from FY26 to FY31, to significantly enhance its Micro, Small, and Medium Enterprises (MSME) export capabilities. This comprehensive program addresses critical issues such as reducing export costs and improving access to trade finance, crucial in an era of global trade uncertainty and rising tariffs.
The mission operates through two key sub-schemes: Niryat Protsahan, focusing on financial support and credit, and Niryat Disha, concentrating on non-financial enablers like market access and regulatory compliance. Notably, Market Access Support (MAS) under Niryat Disha will help exporters connect with overseas buyers through structured participation in international trade fairs and trade delegations, with a mandatory 35% MSME participation.
Financial interventions include an interest support scheme offering a base subvention of 2.75% on export credit, alongside a collateral guarantee scheme to mitigate bank lending risks to MSME exporters. This strategic push is vital as MSME exports constitute 45% of India's total exports, and facilitating their global integration is key to economic growth and job creation.
