The Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry has announced a new financial support initiative aimed at strengthening India’s cross-border e-commerce exports.

Through Trade Notice No. 31/2025-2026, the government has launched Credit Assistance for E-Commerce Exporters under the Export Promotion Mission (EPM) – Niryat Protsahan.

The intervention seeks to improve access to working capital for Micro, Small and Medium Enterprises (MSMEs) engaged in global e-commerce trade. By enabling exporters to obtain easier financing, the initiative aims to help businesses manufacture goods in anticipation of international demand and expand participation in global value chains.

The scheme has been implemented with prospective effect and will initially operate on a pilot basis.

Policy Background

India’s export ecosystem is increasingly shifting toward digital trade and cross-border e-commerce platforms. However, many MSME exporters face challenges in accessing adequate working capital to scale production and fulfil international demand.

To address these issues, the government introduced the Export Promotion Mission (EPM) – Niryat Protsahan, which focuses on improving India’s export competitiveness through targeted financial and policy support.

The Credit Assistance for E-Commerce Exporters intervention is designed to strengthen financing mechanisms for MSMEs participating in global digital marketplaces.

Key Highlights of the Notification

The Trade Notice outlines the following key features of the scheme:

• Credit assistance support for MSME exporters involved in e-commerce exports
• Credit guarantee cover for banks extending working capital facilities
• Eligible credit facilities include:
  – Cash Credit
  – Overdraft
  – Other working capital financing options
• Interest subvention support available within notified ceilings
• The programme will be implemented on a pilot basis
• The scheme will be operationalised through the Export-Import Bank of India (Exim Bank)
• Detailed policy framework and operational guidelines are provided through annexures
• Stakeholder feedback has been invited within 30 days from the issuance of the Trade Notice

Detailed Explanation of the Scheme

Improving Working Capital Access

One of the key barriers faced by MSME exporters is the limited availability of working capital financing. Exporters often need to produce goods before confirmed international orders are received, particularly when selling through e-commerce platforms.

The new intervention addresses this issue by enabling exporters to access bank credit supported by government-backed mechanisms, allowing them to scale production and manage export demand more effectively.

Credit Guarantee Support

Under the scheme, banks providing credit assistance to eligible exporters will receive credit guarantee cover.

This mechanism helps reduce lending risks for financial institutions and encourages them to extend working capital financing to MSMEs engaged in cross-border e-commerce exports.

Eligible facilities include:

• Cash Credit
• Overdraft
• Other working capital arrangements

The detailed coverage parameters are provided in the policy framework accompanying the Trade Notice.

Interest Subvention

The intervention also provides interest subvention support, which reduces the effective borrowing cost for exporters.

Under this provision, a portion of the interest payable on eligible credit facilities may be subsidized within the notified ceilings specified in the policy framework.

This financial support aims to make export financing more affordable and accessible for MSMEs.

Pilot Implementation through Exim Bank

The scheme will initially be implemented on a pilot basis through the Export-Import Bank of India (Exim Bank).

The pilot approach allows the government to gather industry feedback, evaluate operational outcomes, and introduce data-driven refinements to the policy framework before wider implementation.

Impact on Businesses

Exporters

MSME exporters operating through international e-commerce platforms may benefit from:

• Improved access to working capital financing
• Reduced borrowing costs through interest subvention
• Greater capacity to produce goods in anticipation of demand
• Enhanced participation in global digital trade networks
•  

MSMEs

The scheme specifically targets MSMEs that face challenges in obtaining financing due to limited credit history or perceived lending risks. By reducing these barriers, the initiative could significantly improve export readiness and scalability.

Compliance Guidance

Businesses involved in e-commerce exports should consider the following steps:

• Review the eligibility criteria outlined in the policy framework
  • Engage with banking partners regarding available credit facilities
  • Understand interest subvention benefits and applicable limits
  • Monitor updates during the pilot implementation phase
  • Submit feedback to DGFT if required

As per the Trade Notice, stakeholders may submit comments and suggestions within 30 days from the date of issuance via email at:

epm-dgft@gov.in

Expert Insight

The introduction of credit assistance for e-commerce exporters reflects the government’s strategic focus on digital export growth and MSME participation in global trade.

By combining credit guarantees and interest subvention, the initiative addresses one of the most significant constraints faced by exporters — access to affordable working capital.

If implemented effectively, the scheme could strengthen India’s position in cross-border e-commerce supply chains while enabling MSMEs to scale export operations.

Conclusion

The Credit Assistance for E-Commerce Exporters under the Export Promotion Mission (Niryat Protsahan) marks an important step toward improving financial access for MSME exporters engaged in digital trade.

Through risk-sharing mechanisms, interest support, and pilot-based implementation, the initiative aims to reduce financing barriers and encourage broader participation in global e-commerce markets.

Exporters and industry stakeholders are encouraged to review the detailed framework and monitor developments as the pilot programme progresses.

Annexure – Official Government Notification

The detailed policy framework, operational guidelines, governance structure, and pilot implementation guidelines are provided in the official notification.

The annexures are attached below for reference.
Click Here

Notification Reference:  CBIC
Trade Notice 31/2025-2026
o6/03/2026