MoC&I Launches Two Key Interventions to Boost MSME Exports under EPM

Current Context: On 1 January 2026, the Government of India rolled out the Export Promotion Mission in New Delhi with two major interventions.

• The first is an interest subvention scheme, offering a 2.75% cheaper export credit on pre- and post-shipment loans, with a cap of ₹50 lakh per IEC annually.
• The second is collateral support, designed to ease access to trade finance for MSME exporters facing security constraints.
• Together, these measures aim to reduce the cost of credit, improve liquidity, and strengthen MSME participation in global trade.
• The interventions are backed by a budgetary outlay of ₹5,181 crore till FY31, as part of the larger ₹25,060 crore mission.
• This initiative is expected to enhance competitiveness, boost exports, and support India’s economic growth trajectory.

Question:

Q.1 What is the base rate of interest subvention provided under the first major intervention of the Export Promotion Mission for MSME exporters?
a) 2%
b) 2.75%
c) 3%
d) 5%

Answer: b) The scheme offers a base interest subvention of 2.75% on pre- and post-shipment rupee export credit to reduce borrowing costs for eligible MSME exporters.