Highlights:
- $3 billion export mission expanded with seven new measures focused on MSME export growth.
- Direct E-Commerce Credit Facility offers loans up to 5 million rupees with 90% government guarantee.
- Overseas Inventory Credit Facility provides up to 50 million rupees with 75% guarantee and 2.75% interest subsidy.
- Export factoring subsidy of 2.75% to ease working capital pressures.
- TRACE compliance program reimburses up to 75% of export testing and certification costs.
A central pillar of the mission is widening access to export credit, particularly for exporters using digital platforms and e-commerce channels.
The Commerce Ministry introduced a Direct E-Commerce Credit Facility that offers loans of up to 5 million rupees (about $60,000) with 90 percent government-backed guarantee coverage. The move is intended to reduce lending risk for financial institutions while expanding export credit availability for small exporters.
An Overseas Inventory Credit Facility will provide financing support of up to 50 million rupees (about $600,000), backed by 75 percent guarantee coverage. The facility also includes a 2.75 percent interest subsidy, capped at 1.5 million rupees annually per applicant. This mechanism is designed to help exporters maintain inventory in overseas markets, supporting faster delivery and stronger export performance.
To ease working capital constraints, the government will subsidize export factoring costs. Export factoring allows businesses to sell receivables at a discount in exchange for immediate cash flow, improving liquidity for export operations. Eligible transactions conducted through entities recognized by the Reserve Bank of India or the International Financial Services Centres Authority will qualify for a 2.75 percent interest subsidy. Assistance is capped at 5 million rupees per MSME annually and will be processed through a digital claims system.
These measures are structured to lower the cost of export finance, diversify export funding tools, and strengthen cash flow management for exporters.
Export compliance and certification reimbursement
The government also introduced the Trade Regulations, Accreditation and Compliance Enablement program, known as TRACE, to reduce compliance costs associated with export activity.
Under TRACE, exporters can receive partial reimbursement for testing, inspection, and certification expenses required to meet international export standards. Eligible firms will be reimbursed up to 60 percent of costs under a “Positive List” and up to 75 percent under a “Priority Positive List,” subject to an annual cap of 2.5 million rupees per Import Export Code.
By lowering regulatory expenses, the government aims to help exporters meet international compliance requirements more efficiently and reduce barriers to entering new export markets.
Export logistics and freight support
Improving export logistics infrastructure is another major component of the mission.
Through the Facilitating Logistics, Overseas Warehousing and Fulfillment initiative, exporters will gain access to overseas warehousing facilities and e-commerce export hubs linked to global distribution networks. Financial support of up to 30 percent of approved project costs will be available for up to three years, subject to MSME participation norms.
The Logistics Interventions for Freight and Transport program, known as LIFT, targets exporters operating in remote, northeastern, hilly, and landlocked regions. The scheme will reimburse up to 30 percent of eligible freight expenses, capped at 2 million rupees per Import Export Code per fiscal year.
These logistics measures are intended to reduce export transportation costs, improve supply chain efficiency, and address regional disparities in export infrastructure.
Export market intelligence and risk mitigation
To support exporters entering new or higher-risk markets, the government will facilitate alternative trade instruments, including confirmation and negotiation of letters of credit. This approach aims to reduce payment risks for exporters expanding into emerging destinations.
In addition, the Support for Trade Intelligence and Facilitation initiative, referred to as INSIGHT, will fund projects that enhance export market intelligence and trade facilitation systems. Assistance will typically cover up to 50 percent of project costs and may rise to 100 percent for proposals from central and state government institutions and Indian missions abroad.
By strengthening trade intelligence, the government seeks to improve export decision-making and help businesses identify viable international opportunities.
Coordinated strategy to strengthen export competitiveness
Officials said the combined financial, compliance, and logistics measures are designed to reduce the cost of capital for exporters, broaden export finance instruments, and integrate Indian MSMEs more deeply into global value chains.
The $3 billion mission reflects a coordinated policy effort to expand export capacity, improve export readiness, and create long-term export resilience. With expanded export credit, subsidized export finance, logistics incentives, and compliance reimbursements, the government aims to position Indian exporters for sustained growth in global markets.
