New Delhi, Feb 4 (PTI) – The Indian government is in the process of formulating new schemes aimed at supporting Micro, Small, and Medium Enterprises (MSME) exporters by providing easier credit access, strengthening factoring services, and assisting them in dealing with non-tariff measures imposed by other nations.
Speaking to reporters on Tuesday, Director General of Foreign Trade (DGFT) Santosh Kumar Sarangi stated that the commerce, MSME, and finance ministries are jointly working on these initiatives. These schemes are being developed as part of the Export Promotion Mission, which was announced in the Union Budget for 2025-26.
According to Sarangi, the government expects to roll out these schemes within the next four to five months.
The Union Budget, presented on February 1, allocated ₹2,250 crore for the Export Promotion Mission to enhance India’s outbound shipments. Finance Minister Nirmala Sitharaman highlighted that this mission aims to provide easy credit access, cross-border factoring support, and assistance for MSMEs to navigate non-tariff barriers in international markets.
Sarangi emphasized that promoting factoring services is a key priority, as it would reduce exporters' reliance on banks. While export factoring services are a popular financing tool worldwide, their adoption in India remains low due to high interest rates, risk premiums, and the absence of parity with subvention schemes.
To align with global trends, cross-border factoring must expand to at least 3% of India’s merchandise exports, he noted.
These initiatives are expected to bolster India’s export ecosystem, particularly benefiting MSME exporters by easing financial constraints and enhancing their competitiveness in the global market.
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