Govt announces Rs 7,295-cr package to support credit access for exporters, Pg15

Key Highlights:

• The government announced a Rs 7,295-crore export support package on Friday.
• The package includes a Rs 5,181-crore interest subvention scheme and Rs 2,114-crore collateral support.
• These measures aim to improve exporters' access to credit over six years (2025-31).
• The interest subvention scheme will provide a subsidy on pre- and post-shipment export credit.

Detailed Insights:

• This package is the second component of the Rs 25,060-crore Export Promotion Mission (EPM) approved in November 2025.
• The first component, market access support with an outlay of Rs 4,531 crore, was launched on December 31, 2025.
• The subvention scheme will help exporters in identified sectors access rupee export credit at competitive rates.
• Eligible MSME exporters will receive subsidy benefits ranging from 2.75%.
• The subvention rates will be reviewed bi-annually in March and September based on domestic and global benchmarks.
• The annual benefit is capped at Rs 50 lakh per firm.
• The RBI and DGFT will release detailed guidelines for the scheme, with the RBI as the implementing agency.

Key Concepts Involved:

• Interest Subvention: A government subsidy to reduce the interest rate on loans, making credit cheaper.
• Collateral Support: Assistance provided to exporters to meet collateral requirements for loans.
• MSME: Micro, Small, and Medium Enterprises, a key sector for economic growth and employment.
• DGFT: Directorate General of Foreign Trade, responsible for implementing foreign trade policy.