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Time of India
01-05-2025
- Business
- Time of India
Comm Min's export promotion mission may have 12-point plan to push exports, help MSME exporters
The commerce ministry's Export Promotion Mission (EPM), with a Rs 2,250 crore outlay, is set to launch with up to 12 components. These include easy credit schemes for MSMEs and e-commerce exporters, overseas warehousing facilitation, and global branding initiatives. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The commerce ministry's Export Promotion Mission (EPM) is expected to feature up to 12 components, including easy credit schemes for MSME e-commerce exporters , facilitation of overseas warehousing, and global branding initiatives , to tap emerging export opportunities and strengthen trade tools for small businesses, an industry official said. The Directorate General of Foreign Trade (DGFT) showed a presentation on this mission to the representatives of export promotion councils and other key stakeholders on April DGFT has also sought the views of the councils on this before finalising the schemes under this EPM is divided into two broad categories - Providing Trade Finance Support ( NIRYAT PROTSAHAN ); and Driving International Holistic Market Access (NIRYAT DISHA) NIRYAT PROTSAHAN, six sub-schemes are under consideration; the Niryat Rin Vikas (NIRVIK) Sub-Scheme for MSMEs and new exporters; Support for Emerging Export Opportunities; Support for Trade Instruments for MSMEs; Collateral Support for Export Credit for MSME exporters; E-commerce Export Credit Card Sub-Scheme; and BharatTradeNET, the official in the NIRYAT DISHA initiative, there are also six elements. These are Technical Regulations and Compliance Enablement (TRACE); Focussed Market Access Initiative (FMAI); Facilitating Export Logistics and Overseas Warehousing (FLOW); Global Outreach for Branding Exports (GLOBE); Export Planning and Development for Districts and Clusters (EXPAND); R&D Support Sub-Scheme for India Centre for Lab Grown Diamond (InCent-LGD) at IIT Madras, official added that these sub-schemes will be implemented through a digitally enabled application and monitoring system, anchored around an online 'intent to claim' objective of the NIRVIK sub-schemes is to establish a dynamic and responsive interest equalisation support framework that enables MSMEs to access export credit in rupee (INR) at globally competitive rates."This will be achieved through the periodic notification of NIRVIK rates, which will be benchmarked against prevailing interest rates offered to exporters in countries that compete with India in international trade," the official would be applicable to MSME exporters availing export credit, subject to a specified cap limit for interest subvention. However, this cap shall be reviewed periodically based on the actual a negative list of export items would be maintained under the scheme and no interest subvention shall be provided for items included in this negative negative list is prepared based on criteria such as low-value addition and high outgo, raw materials and primary products, high-value and potential items for misuse, and other sensitive Items."There will be an annual notification of NIRVIK rates, which will be benchmarked against prevailing interest rates offered to exporters in countries that compete with India in international trade," another official collateral support for export credit for MSME exporters sub-scheme's objective is to provide back-up collateral upwards of 80 per cent or as decided by the collateral support agency to MSMEs and e-commerce exporters, based on the composite track record of the government on February 1 announced the setting up of an Export Promotion Mission with an outlay of Rs 2,250 crore to promote the country's outbound Minister Nirmala Sitharaman has said that through the mission, the government will facilitate exporters to get easy access to credit, cross-border factoring support, and support MSMEs to tackle non-tariff measures in overseas markets.
Time of India
30-04-2025
- Business
- Time of India
Exporters set to get collateral-free loans
NEW DELHI: The commerce department on Wednesday unveiled the elements of the Export Promotion Mission focused on providing low-cost and collateral-free loans, backing new instruments, supporting opportunities in new markets and boosting export credit to e-commerce, amid concerns that the overall allocation of Rs 2,250 crore was spread too thinly. Top of the agenda is Niryat Rin Vikas or NIRVIK, an interest equalisation scheme targeted at MSMEs and new exporters. The plan is to reset interest rates annually by benchmarking them to rates in other countries that Indian exports are competing with. The decision flows from the realisation within govt that interest rates in India are twice, if not thrice, the level in countries such as China, South Korea, Singapore, Malaysia, and Thailand. The scheme will come with a specified cap with a negative list of sectors linked to parameters, such as low value addition, raw material or primary products, and items where there is a high probability of misuse, sources told TOI. Exporters will get the benefit upfront with banks getting reimbursed. Govt is also seeking to end the hardship faced by exporters - especially MSMEs and e-commerce - due to banks demanding collaterals. The plan is to provide over 80% of the collateral requirement based on track record through an online evaluation and monitoring mechanism. Exporters will be given a unique ID with fund disbursals on a monthly or quarterly basis under the scheme where a credit guarantee fund will be roped in. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Affordable and Modern Container Homes in the Philippines: 2025 Prices and Models LocalPlan Learn More Undo The commerce department has also lined up plans to provide easier access to working capital through trade finance instruments, with post-shipment tools, such as factoring, reverse factoring, and vendor financing for small exporters. The overall benefit will come with a ceiling, sources indicated. Similarly, to support emerging opportunities, the govt intends to share up to 90% of the risk of MSMEs, which are looking to venture into "new, high-risk markets", with at least 1,000 exporters to be backed in the first year. The Centre intends to use the Trade Assistance Fund to invest in liquid assets allowed under EXIM Bank's investment policy, sources said. A Focused Market Access Initiative is also planned to help exporters tap new opportunities. Govt will support their participation in fairs and meet up to 90% of the cost. This will be in addition to a boost for branding. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
