Export Promotion Mission – NIRYAT PROTSAHAN & NIRYAT DISHA | UPSC-Curated | GS-III

Core Update

Government launched two key interventions under Export Promotion Mission: interest subvention (2.75% base rate) on export credit and collateral guarantee support through CGTMSE for MSME exporters, targeting enhanced trade finance access.

What is Export Promotion Mission?

Approved by Union Cabinet on 12 November 2025 with ₹25,060 crore outlay (FY 2025-26 to FY 2030-31), it is jointly implemented by Department of Commerce, Ministry of MSME, and Ministry of Finance. The Mission aims to strengthen India's export competitiveness with focus on MSMEs, first-time exporters, and labour-intensive sectors.

Two Sub-Schemes

1. NIRYAT PROTSAHAN (Trade Finance)

Focuses on affordable and diversified trade finance access:

Interest Subvention: 2.75% base rate on pre- and post-shipment rupee export credit
Additional Incentive: For exports to under-represented/emerging markets (subject to readiness)
Coverage: ~75% of India's tariff lines at HS 6-digit level
Cap: ₹50 lakh per IEC per FY 2025-26
Review: Bi-annually in March and September

2. NIRYAT DISHA (Non-Financial Enablers)

Supports market access, branding, regulatory compliance, logistics, and trade intelligence.

Collateral Guarantee Intervention

Category	Guarantee Coverage	Max Exposure
Micro & Small Exporters	Up to 85%	₹10 crore/exporter/FY
Medium Exporters	Up to 65%	₹10 crore/exporter/FY

Partnership with CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises)
Complements existing credit guarantee mechanisms

Key Features

Data-Driven Positive List: Excludes restricted/prohibited items, waste/scrap, products under overlapping schemes
Strategic Exports: Defence and SCOMET products included
Labour-Intensive Focus: Prioritizes sectors with high employment potential
Pilot Rollout: Both interventions launched on pilot basis with refinement scope

Why it Matters

Working Capital Constraint: Addresses key MSME export barrier – high cost of export credit
Collateral Barrier: 85% guarantee removes need for physical collateral, enabling bank lending
GVC Integration: Enables MSMEs to integrate into Global Value Chains
Market Diversification: Incentivizes exports to non-traditional markets

UPSC Relevance

GS-III: Indian Economy – Planning, Growth, Development; Foreign Trade Policy
GS-II: Government Policies and Interventions for Development

Prelims Trap Alert

⚠️ Interest subvention applies to notified positive list (~75% tariff lines), not all exports. Also note it's 2.75% base rate, not a flat percentage on all credit.

CivisPrime Tip

💡 Remember: NIRYAT = Export. PROTSAHAN = Encouragement (finance). DISHA = Direction (non-finance). CGTMSE gives 85% for Micro/Small, 65% for Medium exporters.

Source

Press Information Bureau (PIB)

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