India’s government announced a Rs 7,295-crore package on January 1, 2026, to strengthen exporters’ access to affordable credit and drive export growth to $2 trillion by 2030. This initiative comes at a critical time when global trade faces headwinds from geopolitical tensions and supply chain disruptions.
The package focuses on interest equalization for pre- and post-shipment rupee export credit, benefiting over 25,000 exporters, especially micro, small, and medium enterprises (MSMEs) in labor-intensive sectors like textiles, leather, engineering goods, electronics, and aquaculture. Key features include extending the Interest Equalisation Scheme (IES) by two years until 2027–28 with a Rs 5,500-crore allocation, raising the maximum loan limit per exporter to Rs 50 crore from Rs 25 crore, and introducing a new 3% interest equalization rate for select 14 sectors. Additionally, a Rs 900-crore sub-scheme targets rupee-based trade financing for gems, jewelry, and pharmaceuticals to reduce dollar dependency and hedging costs.
This builds on previous efforts, where IES supported pre-shipment credit up to Rs 40 crore per IEC holder. Commerce Minister Piyush Goyal emphasized that the package will enhance competitiveness, create jobs, and align with the Atmanirbhar Bharat vision by promoting rupee internationalization. Early data shows India’s exports reached $778 billion in FY25, up 6%, but non-petroleum goods need a further push. Exporters welcome the move, as it lowers borrowing costs by 2–3% through ECGC guarantees and NBFI participation.
With this timely intervention, India aims to capture emerging markets in green tech, EVs, and pharmaceuticals, positioning itself as a resilient global trade powerhouse.
FAQs [Frequently Asked Questions]
Q1: What is the main goal of the Rs 7,295-crore export package?
The package aims to provide affordable credit to over 25,000 exporters, especially MSMEs in labor-intensive sectors, by extending interest equalization and raising loan limits to boost exports to $2 trillion by 2030 amid global challenges.
Q2: Which sectors benefit most from this scheme?
Textiles, leather, engineering, electronics, aquaculture, gems, jewelry, and pharmaceuticals gain from 3% interest equalization, higher Rs 50 crore loan caps, and rupee trade financing to cut costs and enhance competitiveness.
Q3: How does the package support rupee-based exports?
A Rs 900-crore sub-scheme offers financing for rupee trade in key sectors, reducing forex risks via ECGC guarantees and NBFIs, aligning with India’s push for rupee internationalization and self-reliance.