New Delhi: The Union government has launched a ₹7,295-crore export support package aimed at enhancing exporters’ access to affordable credit and addressing constraints related to trade finance. The package was announced on January 2 and is designed to be implemented over a six-year period from 2025 to 2031.
The initiative comprises two key components: an interest subvention scheme amounting to ₹5,181 crore and a collateral support facility valued at ₹2,114 crore. Together, these measures are intended to make export financing more accessible, particularly for small and medium exporters who often face difficulties in securing working capital at competitive rates.
Under the interest subvention component, exporters will be able to avail pre-shipment and post-shipment credit at reduced interest rates. The subsidy is aimed at lowering the cost of borrowing for exporters and enabling them to manage cash flows more efficiently during different stages of the export cycle. The benefit under this scheme will be capped at ₹50 lakh per firm, ensuring that support is distributed across a broad base of exporters.
The government has stated that the interest subsidy will apply to both pre-shipment credit, which is used to finance the production and procurement of goods meant for export, and post-shipment credit, which helps exporters manage liquidity after goods have been shipped but before payment is received. By covering both stages, the scheme seeks to provide comprehensive financial support to exporters.
The second major component of the package focuses on collateral support. A total of ₹2,114 crore has been earmarked to provide collateral guarantees for working capital loans. Under this provision, exporters will be eligible for collateral-free guarantees of up to ₹10 crore. This measure is expected to primarily benefit micro, small and medium enterprises (MSMEs), which often lack sufficient assets to offer as collateral when seeking bank finance.
MSME exporters are seen as key beneficiaries of the package, as access to credit remains a persistent challenge for smaller firms engaged in international trade. By reducing the collateral burden and offering interest support, the government aims to improve the ability of these exporters to compete in global markets.
The export support package is structured to run for six years, covering the period from 2025 to 2031. The extended implementation timeline is intended to provide sustained assistance and policy stability, allowing exporters to plan their financing needs over the medium term.
According to the government, easing trade finance constraints is critical for maintaining and expanding India’s export base. Limited access to affordable credit has often been cited as a major hurdle for exporters, particularly in times of global economic uncertainty. The newly announced measures are designed to directly address this issue by lowering borrowing costs and reducing credit-related barriers.
The interest subvention and collateral support schemes will be implemented through existing financial channels, with eligible exporters able to access the benefits through participating banks and financial institutions. Detailed operational guidelines are expected to outline the eligibility criteria and procedural requirements for availing the support.
By announcing the ₹7,295-crore package, the government has signalled its intent to strengthen the export ecosystem and support businesses involved in international trade. The focus on MSMEs reflects the recognition of their growing role in exports and the need to provide targeted financial assistance to help them scale up operations.
As the schemes come into effect, exporters are expected to gain improved access to working capital and more predictable financing terms. The government has positioned the package as a step towards easing credit-related bottlenecks and supporting export growth over the coming years.
