India Announces Export Support Package
Analysis based on 6 articles · First reported Jan 02, 2026 · Last updated Jan 03, 2026
The announcement of India's export support package is expected to positively impact the market by improving access to credit for exporters, especially Micro, Small, and Medium Enterprises (MSMEs). This could lead to increased export activity and potentially strengthen the Indian rupee, as the scheme aims to provide rupee export credit at competitive rates.
India has announced a Rs 7,295-crore export support package, which includes a Rs 5,181-crore interest subvention scheme and Rs 2,114-crore collateral support. These measures, to be implemented over six years (2025-2031), are designed to enhance exporters' access to credit and address trade finance issues, particularly for MSMEs. The interest subvention scheme will provide subsidy benefits of 2.75% to eligible MSME exporters, capped at Rs 50 lakh per firm, with guidelines to be released by the State Bank of India and the India — Directorate General of Foreign Trade. The collateral support will offer credit guarantee for export-linked working capital loans, up to Rs 10 crore per firm, with guarantee coverage up to 85% for micro and small exporters and 65% for medium exporters. These initiatives are part of the larger Rs 25,060-crore Export Promotion Mission approved in November 2025 and will apply to a selected positive list of products, including Defence and SCOMET items.
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