Government Unveils ₹7,295 Crore Package to Enhance Credit Access for Exporters
Government announces a ₹7,295 crore package to boost credit access for Indian exporters.
Photo by Markus Winkler
The Indian government has announced a substantial package of ₹7,295 crore to enhance credit access for exporters, aiming to boost India's export competitiveness. This initiative is designed to provide greater liquidity and support to export-oriented businesses, particularly Micro, Small, and Medium Enterprises (MSMEs), which often face challenges in securing timely and affordable credit.
The package is expected to facilitate easier working capital, enabling exporters to fulfill orders and expand their global reach. This strategic move is crucial for achieving India's ambitious export targets and strengthening its position in international trade.
UPSC Exam Angles
Impact of government schemes on economic sectors (exports, MSMEs)
Role of credit in economic growth and trade
Challenges and opportunities for MSMEs in international trade
India's Foreign Trade Policy and its objectives
WTO compliance and export subsidies
Visual Insights
Government's Exporter Credit Package: Key Figures & Context (Jan 2026)
This dashboard highlights the immediate financial commitment and strategic context of the government's ₹7,295 crore package for exporters, linking it to broader national export goals.
- Total Package Amount
- ₹7,295 Crore
- Primary Beneficiaries
- Exporters & MSMEs
- India's Export Target
- $2 Trillion by 2030
Direct financial injection to enhance credit access and liquidity for Indian exporters.
Focus on Micro, Small, and Medium Enterprises (MSMEs) addresses their specific challenges in securing timely and affordable credit.
This package is a strategic step towards achieving the ambitious export target set by the Foreign Trade Policy 2023.
More Information
Background
Latest Developments
Practice Questions (MCQs)
1. Consider the following statements regarding India's export promotion efforts: 1. The recently announced ₹7,295 crore package primarily aims to enhance credit access for exporters, especially MSMEs. 2. The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme is compliant with WTO norms and replaced the Merchandise Exports from India Scheme (MEIS). 3. Export Credit Guarantee Corporation of India (ECGC) provides insurance cover to Indian exporters against non-payment risks from overseas buyers. Which of the statements given above is/are correct?
- A.1 and 2 only
- B.2 and 3 only
- C.1 and 3 only
- D.1, 2 and 3
Show Answer
Answer: D
Statement 1 is correct as per the news article, highlighting the package's purpose and beneficiaries. Statement 2 is correct. RoDTEP was introduced to replace MEIS and is designed to be WTO-compliant by remitting embedded taxes and duties. Statement 3 is correct. ECGC's primary role is to provide export credit insurance and guarantee services to Indian exporters and banks, safeguarding them against commercial and political risks.
2. In the context of financing India's international trade, which of the following statements is/are correct? 1. Pre-shipment credit is provided to exporters for purchasing raw materials, processing, and packaging of goods before shipment. 2. The Export-Import Bank of India (EXIM Bank) primarily facilitates imports and exports through lines of credit and project finance. 3. The Reserve Bank of India (RBI) directly provides long-term export credit to MSMEs to boost their global competitiveness. Select the correct answer using the code given below:
- A.1 only
- B.1 and 2 only
- C.2 and 3 only
- D.1, 2 and 3
Show Answer
Answer: B
Statement 1 is correct. Pre-shipment credit (also known as packing credit) is a type of working capital finance provided to exporters to meet expenses incurred before the actual shipment of goods. Statement 2 is correct. EXIM Bank is the principal financial institution in India for coordinating the working of institutions engaged in financing export and import of goods and services, offering various financial products including lines of credit and project finance. Statement 3 is incorrect. RBI regulates and supervises the financial system, including setting norms for export credit, but it does not directly provide long-term credit to individual MSMEs. This function is typically performed by commercial banks and specialized financial institutions like EXIM Bank.
3. Consider the following statements regarding Micro, Small and Medium Enterprises (MSMEs) in India: 1. MSMEs contribute significantly to India's Gross Domestic Product (GDP) and employment generation. 2. The definition of MSMEs in India is based solely on investment in plant and machinery or equipment. 3. The government's Foreign Trade Policy (FTP) aims to integrate MSMEs into global value chains and enhance their export capabilities. Which of the statements given above is/are correct?
- A.1 and 2 only
- B.1 and 3 only
- C.2 and 3 only
- D.1, 2 and 3
Show Answer
Answer: B
Statement 1 is correct. MSMEs are often referred to as the 'backbone' of the Indian economy, contributing substantially to GDP, employment, and exports. Statement 2 is incorrect. The definition of MSMEs was revised in 2020 and is now based on both investment in plant and machinery/equipment AND annual turnover. Statement 3 is correct. A key objective of India's Foreign Trade Policy is to support and integrate MSMEs into the global trading system, recognizing their potential for export growth and diversification.