DGFT Introduces Interest Subvention to Reduce Cost of Pre and Post-Shipment Export Credit for MSMEs [Read Notification]

The Directorate General of Foreign Trade (DGFT) has launched an Interest Subvention scheme for Pre and Post-Shipment Export Credit under the Export Promotion Mission (EPM) - NIRYAT PROTHSAHAN, to lower the cost of export finance for Micro, Small and Medium Enterprises (MSMEs).

The scheme was announced by the Directorate through a trade notice dated 2 January 2026, and aims to provide a rules-based and transparent interest relief mechanism to MSME exporters by offering interest subvention at the rate of 2.75% per annum on both pre-shipment and post-shipment rupee export credit.

MSMEs can now benefit from eased liquidity constraints, enabling them to meet their export-related working capital requirements more efficiently.

Who all are Eligible?

Under the scheme, an eligible MSME exporter may receive a maximum interest subvention benefit of ₹50 lakh per financial year.

The benefit is applicable only to export credit extended by lending institutions in accordance with the Reserve Bank of India’s Master Directions on Pre- and Post-Shipment Export Credit. Both MSME manufacturer exporters and merchant exporters holding a valid Importer-Exporter Code (IEC) and an active Udyam registration are eligible to avail the support.

The interest subvention will be available exclusively for exports covered under the notified positive list of HSN six-digit tariff lines.

The positive list is to be reviewed periodically based on objective parameters such as sectoral MSME concentration, labour intensity and export concentration ratios among other relevant considerations; it shall not be linked to any export performance or minimum export threshold.

The intervention shall be operationalised through the RBI on a pilot basis, with lending institutions required to pass on the benefit of the interest subvention upfront to eligible exporters. Banks will subsequently claim reimbursement from the RBI in accordance with the prescribed operational framework.

The DGFT has also put in place a stakeholder consultation process. Interested exporters, banks and other stakeholders are invited to submit comments and suggestions on the draft Guidelines within 30 days from the date of issuance of this Trade Notice at epm-dgft@gov.in.

Also Read:DGFT Seeks Industry Feedback on Export-Related Non-Tariff Measures, Testing & Certification: Check Details [Read Notification]

The consultation process will run concurrently alongside the pilot phase and feedback received will be examined before the guidelines are finalised and formally notified under the Foreign Trade Policy (FTP) 2023 and the Handbook of Procedures (HBP).

Click the Blue Button Below to access the complete Trade Notice, Draft Provisions, Guidelines for Interest Subvention Support and the List of Tariff Lines Eligible for Interest Subvention for Pre and Post Shipment Export Credit.

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