### Government Initiatives to Enhance MSME Export Competitiveness The Indian government has recently launched a series of financial interventions aimed at bolstering the export capabilities of micro, small, and medium enterprises (MSMEs). These initiatives are part of the broader Export Promotion Mission (EPM) and are designed to alleviate the financial burdens faced by MSMEs in accessing trade finance. The measures include interest subvention and collateral support, which are expected to significantly reduce export finance costs and enhance the global competitiveness of Indian MSMEs. ### Breakdown of Key Initiatives and Their Structure 1. **Interest Subvention Scheme**: - Aimed at providing **2.75% interest relief** on pre- and post-shipment export credit, this scheme is designed to lower borrowing costs for MSMEs, making it easier for them to access working capital [https://taxguru.in/dgft/interest-subvention-scheme-boosts-msme-export-credit.html]. 2. **Collateral Support Mechanism**: - This initiative allows MSME exporters to access working capital with **reduced collateral requirements**, thereby easing the financial constraints that often hinder their ability to export [https://taxguru.in/dgft/launch-collateral-support-export-credit-export-promotion-mission-epm-niryat-protsahan.html]. 3. **Financial Package Overview**: - The government has approved a **₹7,295 crore (approximately $810 million)** export support package, which will be implemented over six years (2025-2031) under the Niryat Protsahan sub-scheme [https://indiaseatradenews.com/centre-rolls-out-₹7295-crore-export-finance-support-package-for-msmes]. 4. **Implementation Timeline**: - The measures are part of a larger **₹25,060 crore** Export Promotion Mission, which aims to enhance MSME access to trade finance and improve their export performance [https://indiaseatradenews.com/government-rolls-out-key-export-credit-support-under-₹25060-crore-export-promotion-mission]. ### Supporting Evidence and Data - **Financial Impact**: - The interest subvention scheme is expected to provide significant savings for MSMEs, allowing them to access credit at rates lower than the market average [https://www.cnbctv18.com/india/india-rolls-out-two-more-components-under-export-promotion-mission-ws-l-19813030.htm]. - **Market Reach**: - By easing financial constraints, these initiatives are projected to help MSMEs diversify their export markets and strengthen India's overall export brand [https://eflip.in/2-key-interventions-to-improve-access-to-export-credit-strengthen-msmes-industry]. ### Conclusion: A Strategic Move to Empower MSMEs In summary, the Indian government's recent financial interventions under the Export Promotion Mission represent a strategic effort to empower MSMEs and enhance their export capabilities. The key findings from these initiatives include: 1. **Cost Reduction**: The introduction of interest subvention and collateral support is expected to significantly reduce the cost of export financing for MSMEs. 2. **Increased Access to Credit**: By lowering collateral requirements, the government is facilitating easier access to necessary working capital for small exporters. 3. **Long-term Commitment**: The substantial financial package indicates a long-term commitment to supporting MSMEs, which are crucial for India's economic growth and export performance. These measures are anticipated to not only bolster the MSME sector but also contribute to the overall growth of India's export economy [https://www.thehindubusinessline.com/economy/export-promotion-mission-govt-rolls-out-interest-subvention-collateral-guarantee-for-exporters/article70464852.ece].