DGFT Announces Credit Support For MSME E-Commerce Exporters Under EPM

(MENAFN- KNN India) New Delhi, Mar 7 (KNN) Micro, small and medium enterprises (MSMEs) with at least six months of export experience through postal or courier channels will be eligible for credit assistance under the Rs 25,060 crore Export Promotion Mission (EPM), the Directorate General of Foreign Trade (DGFT) said in a trade notice on Friday.

The support will also extend to MSMEs that maintain inventory in overseas warehouses for e-commerce fulfilment. In addition, new MSMEs involved in international value chains through e-commerce may qualify if they have at least one year of regular domestic e-commerce operations.

The initiative aims to improve access to working capital for MSMEs engaged in cross-border digital trade, enabling them to produce goods in advance of anticipated demand and expand their participation in global markets.

Credit Facilities and Interest Support

The credit support framework, announced last month by the Ministry of Commerce and Industry, includes interest subvention and partial credit guarantees for exporters using digital channels.

Under the guidelines, the Direct e-Commerce Credit Facility for exporters shipping through postal or courier routes will allow banks to extend credit up to 20 per cent of the average e-commerce export sales recorded over the past two years.

For the Overseas Inventory E-Commerce Credit Facility, the credit limit may be set at up to 50 per cent of the cost of inventory stored in overseas warehouses. Support will also cover stock placed in facilities set up under the E-Commerce Export Hub (ECEH) initiative.

The DGFT said the annual interest subvention will be capped at Rs 15 lakh per beneficiary MSME in a financial year.

Credit Guarantee and Pilot Implementation

Banks extending working capital support - such as cash credit or overdraft facilities - to eligible exporters will receive credit guarantee cover under the programme.

The scheme will also provide interest subvention within notified ceilings to reduce borrowing costs for MSMEs.

The intervention is being implemented on a pilot basis through the Export-Import Bank of India, with the National Credit Guarantee Trustee Company Ltd acting as a partner implementing agency.

Additional Support for Emerging Export Opportunities

Separately, the DGFT issued guidelines to launch another component of the mission aimed at supporting emerging export opportunities.

Under this measure, risk-sharing support will be provided for eligible trade finance transactions backed by banks, with the objective of strengthening financing access for exporters exploring new markets and products.

(KNN Bureau)

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