The scheme will provide 100% credit guarantee coverage to Member Lending Institutions (MLIs) for extending additional credit facilities of up to ₹20,000 crore to eligible exporters, including MSMEs.

What the scheme offers?
100% credit guarantee for banks and lenders
Easier, faster access to export credit
Reduced collateral burden for MSME exporters
Support for expansion into global markets
Boost to India’s export competitiveness

Why the scheme matter?
It is expected to:
Improve liquidity for exporters
Strengthen their ability to meet global orders
Support diversification into new markets
Enhance India’s overall export competitiveness
Reduce financial stress during global trade uncertainties

This move comes alongside the recently approved ₹25,060 crore Export Promotion Mission, about which we have shared in our previous post. EPM supports exporters through:

Niryat Protsahan – affordable trade finance
Niryat Disha – compliance, branding, logistics & market access support

Why Export promotion is critical for India?
Exports contribute 21% of India’s GDP (FY25), support 45 million jobs, and strengthen foreign exchange reserves. MSMEs play a major role, contributing nearly 45% of India’s total exports. Sustained export growth is essential for economic expansion, employment, and global market presence.

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