India’s government has introduced a credit support framework for micro, small and medium enterprises (MSMEs) engaged in e-commerce exports as part of the Rs. 25,060 crore (US $ 2.72 billion) Export Promotion Mission (EPM), aimed at improving access to working capital for smaller exporters.
According to a trade notice issued by the Directorate General of Foreign Trade (DGFT) on Friday, MSMEs with a proven export track record of at least six months through postal or courier channels will be eligible for credit assistance under the programme.
The initiative follows the announcement by the commerce ministry last month of credit facilities backed by interest subvention and partial credit guarantees to support exporters using digital channels.
The scheme is designed to strengthen MSME participation in international value chains through e-commerce by improving access to working capital. The support will enable exporters to manufacture goods in advance of anticipated demand and expand their presence in global markets.
Under the programme, banks will receive credit guarantee cover for financial assistance extended to eligible businesses through cash credit, overdrafts and other working capital facilities. These credit lines will also benefit from interest subvention within notified limits.
The intervention is being implemented on a pilot basis through the Export-Import Bank of India (Exim Bank).
The DGFT stated that support would be available to exporters meeting specified eligibility criteria, including a minimum of six months’ export activity through postal or courier shipments. Eligible firms must also maintain inventory in overseas warehouses used for e-commerce fulfilment or hold stock in facilities established under the government’s e-commerce export hub framework.
New MSMEs participating in international value chains through e-commerce may also qualify for the scheme if they have at least one year of consistent domestic e-commerce operations.
The DGFT also issued guidelines for a parallel initiative under the mission aimed at supporting emerging export opportunities. The measure will provide risk-sharing support for eligible trade finance transactions backed by banks.
The DGFT added that the Export-Import Bank of India, in collaboration with the National Credit Guarantee Trustee Company Ltd, will serve as the implementing agencies for the intervention.
