Export Promotion Mission (EPM): Two New Credit-Linked Schemes
Context:
The Government has introduced two new components under the Export Promotion Mission (EPM).
These aim to ease access to export credit and reduce its cost, particularly for MSME exporters.
With this announcement:
3 out of 11 schemes under EPM have been operationalised so far.
Guidelines for a Market Access Scheme under EPM were notified earlier by the Ministry of Commerce and Industry.
Financial Outlay and Tenure
Total outlay (two schemes): ₹5,181 crore
Duration: 6 years (up to 2030–31)
Category: Niryat Protsahan (Export Promotion – Financial Support).
Niryat Protsahan: Newly Operationalised Schemes
1. Interest Subvention for Pre- and Post-Shipment Export Credit
Key features
Provides interest subvention on:
Pre-shipment export credit
Post-shipment export credit
Applicable only on rupee export credit.
Credit must be extended by scheduled banks.
Implemented in accordance with Reserve Bank of India Master Directions.
Eligible beneficiaries
MSME exporters
Objectives
Reduce cost of export finance
Strengthen MSME liquidity
Improve export competitiveness
Support India’s integration into global value chains
Maintain fiscal prudence and regulatory compliance
2. Collateral Support for Export Credit
Objective
Enable MSME exporters to access bank credit even with:
Limited collateral
Absence of third-party guarantees
Implementation
Implemented through Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
Implemented on a pilot basis
Scope
Applicable to export-linked working capital loans
Eligibility restricted to MSME exporters exporting notified tariff lines
Credit guarantee coverage
Micro & Small exporters: Up to 85% guarantee
Medium exporters: Up to 65% guarantee
Prelims Practice MCQs
Q. Consider the following statements regarding the newly introduced schemes under the Export Promotion Mission (EPM):
They fall under the Niryat Protsahan category.
They aim to reduce the cost and improve access to export credit.
All schemes under EPM have now been operationalised.
Which of the statements given above are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Correct answer: (a)
Explanation:
Only 3 out of 11 EPM schemes have been operationalised so far.
Q. With reference to the Interest Subvention for Pre- and Post-Shipment Export Credit scheme, consider the following:
It is applicable to foreign currency export credit.
It is available to MSME exporters.
It operates in accordance with RBI Master Directions.
Which of the statements given above are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Correct answer: (b)
Explanation:
The scheme applies only to rupee export credit, not foreign currency credit.
Q. The Collateral Support for Export Credit scheme under EPM is implemented through:
(a) EXIM Bank
(b) SIDBI
(c) Credit Guarantee Fund Trust for Micro and Small Enterprises
(d) National Credit Guarantee Trustee Company
Correct answer: (c)