DGFT Extends Interest Subvention to MSME Steel Exports [Read Notice]
DGFT has extended interest subvention benefits to MSME exporters by adding 167 iron and steel tariff lines under Chapter 72, effective April 20, 2026.
![DGFT Extends Interest Subvention to MSME Steel Exports [Read Notice]](https://images.taxscan.in/h-upload/2026/04/21/2133948-dgft-extends-interest-subvention-to-msme-steel-exports-site-imagejpg.webp "DGFT Extends Interest Subvention to MSME Steel Exports [Read Notice]")
The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, has issued Trade Notice dated April 20, 2026 announcing the inclusion of additional steel products for interest subvention support to Micro and Small Enterprises (MSEs). The notification expands the scope of the Export Promotion Mission (EPM) by adding 167 tariff lines under Chapter 72 (iron...
The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, has issued Trade Notice dated April 20, 2026 announcing the inclusion of additional steel products for interest subvention support to Micro and Small Enterprises (MSEs).
The notification expands the scope of the Export Promotion Mission (EPM) by adding 167 tariff lines under Chapter 72 (iron and steel), making them eligible for subsidised export credit.
Key Provisions
- Coverage expanded: 167 new tariff lines added under Annexure-IIA
- Eligible entities: Only Micro and Small Enterprises (MSEs)
- Not eligible: Medium Enterprises excluded
- Credit support: Applies to both pre-shipment and post-shipment export credit
- Effective date: Only for loans disbursed on or after April 20, 2026
- Nature: Prospective benefit, no retrospective claims allowed
Major Product Categories Included (Chapter 72)
The coverage spans the full steel value chain:
1. Primary Iron and Ferro-Alloys
| HS Code Range | Product Type |
| 720110–720150 | Pig iron, alloy pig iron |
| 720211–720299 | Ferro-alloys (manganese, silicon, chromium, nickel, etc.) |
2. Raw and Semi-Processed Steel
| HS Code Range | Product Type |
| 720310–720390 | Reduced iron, sponge iron |
| 720410–720450 | Ferrous waste and scrap |
| 720610–720720 | Ingots and semi-finished steel |
3. Flat-Rolled Steel Products
| HS Code Range | Product Type |
| 720810–720890 | Hot-rolled flat steel (coils and sheets) |
| 720915–720990 | Cold-rolled flat steel |
| 721011–721090 | Coated steel (tin, zinc, aluminium, plastics) |
4. Bars, Rods and Structural Steel
| HS Code Range | Product Type |
| 721310–721590 | Steel bars and rods |
| 721610–721699 | Angles, sections, structural shapes |
5. Steel Wire and Fabricated Forms
| HS Code Range | Product Type |
| 721710–721790 | Steel wire products |
6. Stainless Steel Products
| HS Code Range | Product Type |
| 721810–722300 | Stainless steel ingots, flat products, rods, wires |
7. Alloy Steel Products
| HS Code Range | Product Type |
| 722410–722990 | Alloy steel ingots, sheets, rods, wires |
Sample Entries from Annexure-IIA
| HS Code | Description |
| 720110 | Non-alloy pig iron (low phosphorus) |
| 720221 | Ferro-silicon (high silicon content) |
| 720410 | Cast iron scrap |
| 720825 | Hot-rolled flat steel coils |
| 721041 | Zinc-coated corrugated steel |
| 721310 | Hot-rolled steel rods |
| 721810 | Stainless steel ingots |
| 722511 | Silicon-electrical steel |
(Full list spans 167 items)
Policy Continuity
- Existing provisions from earlier trade notices (January and March 2026) remain unchanged
- This update only expands eligible product coverage under Annexure-IIA
Impact
- Lower borrowing cost for MSME steel exporters
- Improved export competitiveness in global markets
- Broader product coverage from raw iron to finished alloy and stainless steel goods
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