Introduction: Export Promotion Mission Subsidy

India’s exporters need cheaper credit and easier market access. Therefore, the Government of India launched the Export Promotion Mission (EPM) through the DGFT. The Export Promotion Mission Subsidy now gives MSME exporters real financial help. For example, you can get 2.75% interest relief, a credit guarantee of up to ₹10 crore, and funded entry to global trade fairs.

However, many exporters still have doubts. Who qualifies? Which products are covered? How do you apply on the DGFT portal? Thus, in this guide, we answer each question in simple words. Moreover, we cross-checked every figure with DGFT Trade Notices No. 19, 20, 21 and 22 of 2025-26.

What Is the Export Promotion Mission?

The Export Promotion Mission is a DGFT programme that runs from FY 2025 to FY 2031. It helps exporters in two main ways. First, the Niryat Protsahan scheme improves access to export finance. Second, the Niryat Disha scheme builds market access through buyer-seller meets and trade fairs.

At present, these interventions run on a pilot basis. As a result, DGFT invited stakeholder comments within 30 days of each notice. Later, the rules may change after feedback. Therefore, always check the latest notice before you apply.

Interest Subvention for Export Credit

This part of the Export Promotion Mission Subsidy helps most with working capital. The scheme offers interest subvention for export credit, so your borrowing cost falls. DGFT launched it through Trade Notice 20/2025-26 on 2 January 2026. In addition, the Reserve Bank of India runs it on a pilot basis.

Key features:

• Rate: 2.75% per annum on rupee export credit.
• Who gets it: Micro, Small and Medium enterprises.
• Annual cap: ₹50 lakh per MSME exporter in each financial year.
• Payment route: Banks pass the benefit upfront and then claim it from the RBI.

First, pre-shipment export credit interest subvention helps you buy raw material and make goods. Similarly, post-shipment export credit interest subvention helps while you wait for the buyer’s payment. Thus, both stages of the export cycle get support.

Important Conditions from the January 2026 Amendment

Moreover, Trade Notice 22/2025-26 (16 January 2026) added key clarifications. Please note these points.

• Credit must be sanctioned on or after 2 January 2026. Earlier credit does not qualify.
• For FY 2025-26, the ₹50 lakh cap applies in full. DGFT will not reduce it pro-rata.
• Deemed exports are not eligible.
• Support stops if the account turns non-performing before the export cycle ends.
• Exporters who outgrow their MSME category stay eligible for three years.
• If you borrow from several banks, you must keep total claims within the cap. Excess claims are recoverable.
• A revised rate applies only to new credit sanctioned after the change. Old facilities keep the rate from their sanction date.

Besides, banks still set the loan interest rate on their own. DGFT only gives subvention on the interest you pay. Also, the rate will be reviewed twice a year. Hence, confirm the current rate before you apply for the Export Promotion Mission interest subsidy 2026.

Collateral Support for Export Credit

Many MSMEs lack collateral. Therefore, Trade Notice 21/2025-26 introduced collateral support for export credit. Furthermore, it works through the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). Importantly, this export loan guarantee for MSME covers export-linked working capital only.

• Micro and Small exporters: 85% cover. CGTMSE gives 75% and DGFT funds add 10%.
• Medium exporters: 65% cover, paid fully from the EPM corpus.
• Ceiling: ₹10 crore per borrower, including guarantees under all CGTMSE schemes.

For example, if you already hold ₹2 crore of CGTMSE cover, only ₹8 crore remains. Additionally, you pay an annual guarantee fee at CGS-I rates. The standard rate runs from 0.37% for the smallest slab to 1.20% for the ₹8 to 10 crore slab.

Export Promotion Mission Eligibility

Eligibility differs slightly by component. However, these core conditions repeat across the notices.

1. You hold a valid, active Importer Exporter Code (IEC). It must not be suspended, cancelled or on the Denied Entity List.
2. You hold a valid Udyam Registration and qualify as a Micro, Small or Medium enterprise.
3. You are a manufacturer exporter or a merchant exporter.
4. Your lender is a regulated bank or an approved institution.
5. You declare that you are not availing benefits under the Production Linked Incentive (PLI) scheme.

Export Promotion Mission HSN Code Eligibility

Not every product qualifies. Instead, DGFT notified a positive list of eligible goods at the HS six-digit level. Additionally, the list covers more than 4,000 tariff lines. For instance, it includes marine products, dairy, tea, spices, rice, chemicals, textiles, garments, footwear, machinery, electronics, furniture, and stationery.

Moreover, DGFT will review the list from time to time. It looks at MSME concentration, export concentration and labour intensity. Importantly, you must claim support only against eligible tariff lines. Otherwise, DGFT can recover the money. Also, each application covers only one sector. Hence, map your exact HSN code before you start.

Why Work with an Export Subsidy Consultant in India?

Government schemes carry many rules, and small errors cause delays. Therefore, many exporters choose a specialist. At Finraja Consultancy Pvt Ltd, we help MSMEs claim government incentives. Specifically, we check your eligibility, map HSN codes and prepare your documents. In addition, we file the DGFT application and coordinate with your bank. As a result, you save time and avoid costly mistakes.

Frequently Asked Questions

What is the Export Promotion Mission Subsidy? It is the financial help under the DGFT Export Promotion Mission. Moreover, it includes interest subvention, collateral support, and market access funding.

What is the interest subsidy rate under the scheme? The rate is 2.75% a year on pre- and post-shipment rupee export credit. However, DGFT reviews it twice a year.

Does the scheme remove the need for collateral? Not entirely. Instead, it gives a guarantee of 85% for Micro and Small units and 65% for medium units.

Can I claim all three benefits together? The notices treat them as separate interventions. Still, confirm your case with an expert, especially because of the PLI declaration.

Is the scheme final? No. At present, it runs on a pilot basis, so rules may change.

Conclusion

The Export Promotion Mission Subsidy can cut your credit cost, reduce collateral stress, and open new markets. However, success depends on correct eligibility checks, accurate HSN codes and timely filing. Therefore, contact Finraja Consultancy Pvt Ltd today for an eligibility review. Let our team handle the paperwork while you focus on exports.

Call us now: +91 9373114747 or visit finraja.com/contact for quick assistance.