Interest Subvention for Pre- and Post-Shipment Export Credit
Launch of Interest Subvention for Pre- and Post-Shipment Export Credit under EXPORT PROMOTION MISSION – NIRYAT PROTHSAHAN
The Interest Subvention for Pre- and Post-Shipment Export Credit intervention under the Export Promotion Mission – Niryat Prothsahan is hereby launched with immediate effect. The objective of this intervention is to facilitate improved access to pre- and post-shipment rupee export credit for MSME exporters by reducing the cost of such credit and by providing a rules-based and transparent interest-relief mechanism. This initiative aims to enhance liquidity for MSME exporters and enable them to meet their working capital requirements efficiently.
The detailed Guidelines for implementation of the Interest Subvention for Pre- and Post-Shipment Export Credit are enclosed at Annexure-I.
2. Implementation Framework and Key Benefits for Exporters
The intervention is being operationalised through the Reserve Bank of India (RBI) on a pilot basis. The salient features of the scheme for exporters are as under:
i. Interest subvention at the rate of 2.75% per annum shall be available on Pre-Shipment Rupee Export Credit and Post-Shipment Rupee Export Credit for Micro, Small and Medium Enterprises (MSMEs);
ii. An MSME exporter shall be eligible to receive a maximum interest subvention benefit of ₹50 lakh per financial year;
iii. The support shall be limited to export credit extended by lending institutions in accordance with the Reserve Bank of India’s Master Directions on Pre- and Post-Shipment Export Credit;
iv. The scheme shall be applicable to MSME manufacturer exporters and merchant exporters dealing in products covered under the notified positive list of HSN six-digit tariff lines.
3. Enclosures
The following documents are enclosed for reference and implementation:
- Annexure-I: Detailed Guidelines for Interest Subvention for Pre- and Post-Shipment Export Credit
- Annexure-II: Positive List of Eligible HSN Six-Digit Tariff Lines
- Annexure-III: Procedure for Online Filing of Intent by Eligible MSME Exporters on the DGFT Portal, including step-by-step application requirements
4. Pilot Roll-out and Stakeholder Consultation
The scheme is being implemented on a pilot basis to enable early access for exporters and to facilitate stakeholder feedback. In terms of paragraph 1.07A of the Foreign Trade Policy (FTP) 2023, the enclosed Guidelines are also being issued for stakeholder consultation.
Accordingly, all concerned stakeholders are invited to submit their comments and suggestions on the draft Guidelines within 30 days from the date of issuance of this Trade Notice at epmdgft@gov.in.
5. Finalisation of Guidelines
The consultation process shall run concurrently with the pilot implementation. Feedback received from stakeholders, along with operational learnings from the pilot phase, shall be examined in a structured manner. Based on such examination, the Guidelines shall be suitably refined and thereafter formalised through appropriate notifications under the FTP/HBP framework.
This Trade Notice is issued with the approval of the Competent Authority.
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