Boosting MSMEs: E-commerce Export Finance Initiative

The Directorate General of Foreign Trade (DGFT) announced that MSMEs with a proven track record in e-commerce exports are now eligible for credit assistance under the Rs 25,060 crore Export Promotion Mission. This initiative supports exporters using digital channels, offering credit facilities with interest subvention and partial guarantees. It aims to bolster MSMEs' access to working capital and to scale their participation in international markets.

The Export-Import Bank of India (Exim Bank) is deploying this intervention on a pilot basis, providing risk-sharing support for qualifying MSMEs. Eligible entities must have a minimum of six months of export experience through postal or courier channels, with inventory placed in overseas warehouses for e-commerce fulfillment.

New MSMEs with a year’s experience in domestic e-commerce and involvement in international value chains can also qualify. The intervention not only covers banks credit assistance in forms like cash credits but also supports it through interest subvention under defined ceilings, providing a significant boost to the sector.