DGFT Revises Niryat Protsahan Scheme for MSME Exporters
New Delhi: The Directorate General of Foreign Trade (DGFT) has made significant changes to the Niryat Protsahan scheme. These revisions come just two weeks after the scheme's launch. The DGFT notified the updates on Friday. The goal is to clear up confusion about eligibility, rates, and claims processing. This confusion arose after the scheme's announcement on January 2.
Key Changes in the Revised Scheme
The Niryat Protsahan scheme is part of the Export Promotion Mission (EPM). The EPM has a total budget of ₹25,060 crore for FY26 to FY31. The commerce department, MSME ministry, and finance ministry jointly run it. The government has not yet set a separate budget for Niryat Protsahan.
Under the new rules, interest subvention now applies only to the actual interest cost exporters bear. It does not cover broader credit costs. This change limits support scope and removes interpretation flexibility for banks and exporters. Deemed exports are now clearly excluded from eligibility. This tightens the scheme's coverage.
Another important change involves non-performing accounts. Interest subvention stops if an export credit account becomes non-performing before the export cycle ends. The DGFT says this enforces discipline in timely repayment and export realization.
Updated Rates and Regulatory Framework
Revised interest subvention rates will apply only to export credit facilities sanctioned after notification. Existing facilities keep their original rates. This prevents retrospective changes for exporters and lenders.
The regulatory basis for eligible export credit has also changed. Earlier, it linked to RBI's master directions on pre- and post-shipment export credit. Now, it aligns with RBI's consolidated directions on credit facilities. This update matches the scheme with the central bank's current supervisory framework.
MSME Reclassification and Compliance
The new framework clarifies MSME reclassification. Exporters who graduate out of the MSME category due to higher investment or turnover still get interest subvention for three years from reclassification. They must meet other conditions. This provision supports growing exporters who might otherwise lose benefits suddenly.
On compliance, exporters using multiple lending institutions now bear more responsibility. They must ensure total interest subvention claims stay within the annual ceiling. Any excess is recoverable.
Tighter Reimbursement Rules for Banks
Banks face stricter reimbursement mechanisms. Monthly reimbursements are limited to actual interest subvention based on verified claims submitted to RBI. All Import Export Code (IEC)-wise claims and reports must be filed online within 15 days of each month's end. Manual submissions are not allowed.
The DGFT order also clarified the FY26 annual interest subvention ceiling. It applies fully without pro-rata adjustment, regardless of when export credit is sanctioned or used. Interest subvention is available only for export credit sanctioned on or after January 2, 2026. This is the scheme's original notification date.
Scheme Structure and Impact
The DGFT stated that all other provisions from the original trade notice remain unchanged. The latest amendments aim to fine-tune implementation, not alter the core structure.
The EPM includes two sub-schemes. Niryat Protsahan focuses on trade finance support. Niryat Disha addresses non-financial enablers like market access, branding, regulatory compliance, logistics, and trade intelligence. The commerce ministry explained the scheme helps smaller exporters with working-capital and collateral constraints. It lowers export credit costs and eases finance access.
MSME Export Growth
Government data shows MSME exports have surged. They rose from ₹3.95 trillion in 2020-21 to ₹12.39 trillion in 2024-25. This highlights their vital role in boosting India's economy and strengthening global trade.
The number of exporting MSMEs has also grown significantly. It increased from 52,849 in 2020-21 to 173,350 in 2024-25. MSMEs contributed 45.73% to India's exports in 2023-24, according to government data.
