Parliament Question: Export support to MSME

GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES RAJYA SABHA UNSTARRED QUESTION NO. 3470 TO BE ANSWERED ON: 23.03.2026 EXPORT SUPPORT TO MSME 3470. SMT. SUMITRA BALMIK: Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state: (a) the steps taken by Government to support and handhold small businesses in export of their products, commercialization of technology and access to working capital; and (b) whether Government is providing any kind of support to new businesses and Micro, Small and Medium Enterprises (MSMEs) working in the field of Indian foods, textiles and novelties, if so, the details thereof? ANSWER MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SUSHRI SHOBHA KARANDLAJE) (a) and (b): The Ministry of Micro, Small and Medium Enterprises implements International Cooperation Scheme which aims to build capacity of MSMEs by facilitating their participation in international exhibitions/fairs/conferences/seminar/buyer-seller meets abroad as well as reimbursement is provided to the first-time Micro and Small Enterprises for various cost involved in export of goods and services. The Ministry of Micro, Small and Medium Enterprises has established 65 Export Facilitation Centres (EFCs) across the country with the aim of providing requisite mentoring and handholding support to MSMEs in exporting their products and services. Export Facilitation Centres (EFCs) serve to support MSME exporters by providing comprehensive assistance through dissemination of information on export-related schemes and benefits, training and workshops on export compliance, handholding in export documentation and procedures, engagement with industry associations, State Governments, and DGFT to facilitate MSMEs. Furthermore, the Government has undertaken the following initiatives to support exporters including new businesses and Micro, Small and Medium Enterprises (MSMEs) to boost their competitiveness in global value chain: i. Export Promotion Mission (EPM): - The Mission will provide a comprehensive, flexible, and digitally driven framework for export promotion, with a total outlay of Rs.25,060 crore for FY 2025–26 to FY 2030–31. EPM marks a strategic shift from multiple fragmented schemes to a single, outcome- based, and adaptive mechanism that can respond swiftly to global trade challenges and evolving exporter needs.: 2 : The Mission will operate through two integrated sub-schemes:  NIRYAT PROTSAHAN – focuses on improving access to affordable trade finance for MSMEs through a range of instruments such as interest subvention, export factoring, collateral guarantees, credit cards for e-commerce exporters, and credit enhancement support for diversification into new markets.  NIRYAT DISHA – focuses on non-financial enablers that enhance market readiness and competitiveness, including export quality and compliance support, assistance for international branding, packaging, and participation in trade fairs, export warehousing and logistics, inland transport reimbursements, and trade intelligence and capacity- building initiatives. ii. Credit Support: To ensure adequate and affordable credit, the Export CreditGuarantee Corporation (ECGC) has increased its insurance cover for banks to 90% (up from 70%) under the Whole Turnover-Export Credit Insurance for Banks (WT-ECIB) for loans up to ₹80 crore. Additionally, a Collateral-Free Cover has been introduced for Micro and Small Enterprises (MSEs) for working capital limits up to 10 crore. iii. In addition, Credit Guarantee Scheme for Exporters has also been approved to provide 100% credit guarantee coverage by National Credit Guarantee Trustee Company Limited (NCGTC) to Member Lending Institutions (MLIs) for extending additional collateral free credit facilities up to Rs.20,000 crore to eligible exporters, including MSMEs. The Scheme is expected to enhance the global competitiveness of Indian exporters and support diversification into new and emerging markets. Enabling collateral-free credit access will strengthen liquidity and ensure smooth business operations. iv. Districts as Export Hubs (DEH): This initiative identifies products with export potential in every district to address bottlenecks and link local MSMEs with global value chains. v. Trade Connect e-Platform: Trade Connect e-Platform has been launched toprovide trade-related information to Indian exporters particularly MSMEs. This platform also serves as an online hub for integrating efforts from the Department of Commerce, Indian Missions abroad, Export Promotion Councils, Commodity Boards, and other organisations to deliver comprehensive support to Indian exporters. vi. Comprehensive GST rationalisation recently done by the government will strengthen MSMEs fortifying local supply chains in critical sectors like automobiles, textiles, food processing, logistics, and handicrafts. Lower GST rates have made raw materials and services more affordable, motivating small and medium enterprises and start-ups to scale up operations, invest in innovation, and compete both domestically and globally. vii. In addition, Ministry of Micro, Small and Medium Enterprises implements several other MSME focused schemes contribute to strengthening the competitiveness of enterprises engaged in exports. These include the Prime Minister's Employment Generation Programme (PMEGP), Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), Micro and Small Enterprises-Cluster Development Programme (MSE-CDP), Scheme of Fund for Regeneration of Traditional Industries (SFURTI), Zero Defect Zero Effect (ZED) Certification Scheme, LEAN Manufacturing Competitiveness Scheme, Intellectual Property Rights (IPR) Scheme, and the Procurement and Marketing Support (PMS) Scheme, which collectively enhance productivity, quality, market access, and institutional capacity of MSMEs. ****