The Government of India, under its Export Promotion Mission (EPM), has introduced a pilot scheme titled Interest Subvention for Pre- and Post-Shipment Export Credit – Niryat Prothsahan to strengthen export financing. The scheme is operationalised through DGFT Trade Notices dated January 2 and January 16, 2026, with implementation subject to RBI’s regulatory framework.
Prior to this update, interest subvention on export credit was primarily available under the Interest Equalisation Scheme (IES) and similar incentive frameworks, with defined sectoral/product coverage, limited flexibility, and without an integrated linkage to the broader Export Promotion Mission (EPM). The operational scope was relatively static and scheme-driven rather than mission-based.
Exporters and lending institutions faced issues such as fragmented export incentive schemes, limited coverage of exporters/products, procedural delays in claims, and lack of alignment with India’s broader export promotion objectives. There was also a need to rationalise incentives and provide more targeted, outcome-oriented support to boost exports in a globally competitive environment.
The Government has introduced the Interest Subvention for Pre- and Post-Shipment Export Credit under the Export Promotion Mission (EPM) – Niryat Prothsahan on a pilot basis, supported by detailed operational instructions issued by DGFT. The scheme provides a structured framework for eligible lending institutions to extend interest subvention to eligible exporters, subject to RBI’s extant regulatory guidelines and prescribed claim procedures.
Link – https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=13279&Mode=0
