By CA Surekha S Ahuja
An exporter can have a good product, a confirmed overseas buyer and a competitive quotation—and still lose the order.
The reasons often lie beyond the selling price: expensive working capital, delayed collections, inland freight, international certification, compliance costs and geopolitical risks.
The Government's Export Promotion Mission (EPM), along with other export-support measures, seeks to address these pressures. But exporters need to understand what each scheme actually provides, how to qualify and, most importantly, how to receive the benefit.
1. Export Promotion Mission: Financial support and market access
With an approved outlay of ₹25,060 crore for FY 2025–26 to FY 2030–31, EPM operates through two sub-schemes:
NIRYAT PROTSAHAN: Export credit, interest subvention, factoring, credit guarantees and other financial interventions.
NIRYAT DISHA: Certification, logistics, market access, trade intelligence and overseas fulfilment support.
The support is not one universal subsidy. Each intervention has separate eligibility conditions, notified products, limits and procedures.
2. Interest subvention: 2.75%—and the bank must pass it on
Eligible MSME exporters can receive 2.75% annual interest subvention on qualifying pre-shipment and post-shipment rupee export credit, subject to a ceiling of ₹50 lakh per exporter per financial year.
A critical point is often overlooked: the bank is required to pass on the eligible benefit upfront. It subsequently claims reimbursement from the implementing agency. The bank's receipt of reimbursement is not a precondition for passing on the benefit.
However, an existing export-credit account does not automatically qualify.
The essential conditions are:
Eligible MSME status, Udyam registration and IEC.
Export of products covered by the notified positive list of six-digit HSN codes.
Eligible rupee export-credit disbursement.
Prescribed UIN generated and submitted to the bank on or before disbursement.
Credit disbursed before 2 January 2026 is outside the scheme. A UIN generated after disbursement cannot cure the omission. On renewal with a top-up, only the additional qualifying disbursement is treated as fresh credit exposure; the old outstanding balance does not automatically become eligible. The benefit also ceases from the date the account becomes an NPA.
What should an exporter do?
Generate the UIN before or on the date of fresh disbursement, submit it formally to the bank, retain acknowledgement and verify the interest statement. If the benefit is not passed on despite eligibility, seek the bank's written explanation and escalate through its grievance mechanism.
The implementing-agency role shifted from RBI to EXIM Bank with effect from 1 April 2026. This changes the reimbursement channel, not the bank's upfront pass-through obligation.
3. Factoring: Convert export receivables into working capital
Instead of waiting 60–120 days for an overseas buyer to pay, an exporter can use factoring to obtain finance against eligible export receivables.
EPM provides 2.75% subvention on eligible factoring costs, subject to a ceiling of ₹50 lakh per IEC.
Under DGFT Trade Notice No. 32/2026–27 dated 26 October 2026, the earlier UIN requirement for factoring has been removed. The factor uploads transaction details; the exporter verifies them and submits the consolidated claim through the prescribed process.
Eligible transactions are covered from 20 February 2026, subject to the notified conditions.
Factoring support can be combined with eligible interest subvention, but the same invoice or interest cost cannot be claimed twice.
4. Credit guarantees and e-commerce finance
For exporters unable to offer adequate collateral, EPM provides guarantee coverage to eligible lending institutions:
| Enterprise | Guarantee coverage |
|---|---|
| Micro and Small | 85% |
| Medium | 65% |
The maximum eligible credit limit is ₹10 crore per exporter, subject to scheme conditions.
This is a lender-side guarantee, not an 85% or 65% cash subsidy to the exporter. The borrower remains liable for repayment.
For eligible MSMEs exporting through e-commerce channels, the EXIM Bank framework also provides:
Direct e-commerce credit with guarantee coverage up to 90%, capped at ₹50 lakh.
Overseas inventory credit with guarantee coverage up to 75%, capped at ₹5 crore.
Interest subvention of 2.75%, subject to an annual ceiling of ₹15 lakh per applicant.
Eligibility and facility approval conditions apply.
5. TRACE and LIFT: Recover eligible certification and transport costs
Two interventions can directly address costs that weaken export margins.
| Intervention | Support | Key condition |
|---|---|---|
| TRACE – Testing and certification | 60% of eligible cost; 75% for Priority Positive List certifications; annual ceiling ₹25 lakh | Notified certification and prescribed prior Intent-to-Claim |
| LIFT – Inland logistics | Up to 30% of eligible inland transport cost; annual ceiling ₹20 lakh | Notified products, districts, routes and prior Intent-to-Claim |
These are reimbursement-based interventions. The exporter initially incurs the eligible expenditure and must follow the prescribed approval and claim process.
LIFT is not a blanket reimbursement of international ocean freight or every logistics expense. TRACE does not cover every certification obtained overseas.
6. RoDTEP and RELIEF: Remission and risk protection
RoDTEP: DGFT Notification No. 41/2026–27 dated 30 September 2026 extended the scheme up to 31 December 2026 for eligible DTA, Advance Authorisation, SEZ and EOU exports. It remits eligible embedded duties and taxes through transferable electronic scrips; it is not a cash grant.
RELIEF: Component II provides 95% risk coverage under specified ECGC arrangements for eligible shipments affected by the West Asia situation. DGFT Notification No. 37/2026–27 dated 30 September 2026 extended the relevant timelines up to 31 March 2027. This is specified risk protection, not a general reimbursement of freight increases or export losses.
7. Market access: Finding the next buyer
Reducing prices is not always the solution to lost orders. Exporters may need new markets, new buyers and credible international exposure.
EPM's Market Access Support facilitates eligible trade fairs, buyer-seller meets, trade delegations and reverse buyer-seller meets. Assistance is proposal- and institution-based; it is not an automatic reimbursement of every exporter's travel or exhibition expenses.
The relevant Export Promotion Council, Commodity Board or approved institution should be approached for eligible events and participation conditions.
8. What does the exporter actually receive?
This distinction should guide every exporter's financial planning.
| Support | Actual benefit |
|---|---|
| Interest subvention | Upfront interest benefit through the bank |
| Factoring support | Subvention on eligible factoring cost |
| Credit guarantee | Protection to lender; not cash to exporter |
| TRACE / LIFT | Reimbursement after eligible expenditure |
| RoDTEP | Transferable duty-remission scrip |
| RELIEF | Specified ECGC risk coverage |
| Market Access Support | Approved institutional or event assistance |
An exporter should never treat an announced allocation, a guarantee or a pending reimbursement as money already received.
9. Exporter's action checklist
Before relying on any scheme, the exporter should:
Verify IEC, Udyam and eligible HSN classification.
Check the relevant scheme's notified product, location and expenditure conditions.
Generate the UIN before or on fresh eligible credit disbursement.
Obtain written bank confirmation and verify the interest benefit in the loan statement.
Complete prior Intent-to-Claim requirements for TRACE and LIFT.
Track factor-uploaded transactions and submit factoring claims within the prescribed timeline.
Maintain invoices, transport records, shipping documents and claim acknowledgements.
Record separately the benefit eligible, claimed and actually received.
CA S.Ahuja Perspective
Export competitiveness is not determined by the selling price alone. It is determined by what remains after financing, logistics, compliance, currency and collection risks have been absorbed.
The Government has created several useful support mechanisms, but the route to each benefit is different. An exporter must identify the right intervention, satisfy its conditions and follow through until the benefit is actually secured.
The interest-subvention scheme illustrates the practical gap. The bank is required to pass on the eligible benefit upfront, but an existing banking relationship does not guarantee automatic implementation. The exporter must meet the UIN and disbursement conditions and verify the interest account.
Government support is useful only when the exporter is eligible, completes the prescribed process and actually receives the financial benefit.
