Government Unveils New Credit-Linked Plans Under Export Promotion Mission for MSMEs
The Ministry of Commerce and Industry has introduced two new credit-linked schemes under the Export Promotion Mission (EPM) to support MSME exporters. The 'Interest Subvention for Pre- and Post-Shipment Export Credit' aims to reduce financing costs and improve liquidity. The second scheme, 'Collateral Support for Export Credit,' provides MSMEs with access to bank credit even with limited collateral, offering guarantees up to 85% for micro and small exporters. These initiatives, part of the Niryat Protsahan category, entail an outlay of ₹5,181 crore over six years to integrate Indian MSMEs into global value chains.
Key Points
- The Export Promotion Mission (EPM) aims to lower the cost of credit and ease access to finance for Indian exporters.
- Interest subvention schemes are designed to strengthen MSME liquidity and enhance their global competitiveness.
- The Collateral Support scheme, implemented via CGTMSE, reduces the burden of providing security for export-linked loans.
- These schemes are part of a broader strategy to operationalize 11 different programs under the Export Promotion Mission.
Exam Facts
- The two schemes have a total outlay of ₹5,181 crore until 2030-31.
- Micro and small exporters are eligible for up to 85% guarantee, while medium exporters are capped at 65%.
- The schemes are implemented through the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
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