India Approves ₹20,000 Crore Credit Scheme for Exporters

The Indian government has approved a new credit scheme worth ₹20,000 crore aimed at supporting exporters, as per an official statement released on Wednesday. The move is designed to boost export competitiveness and address liquidity challenges faced by businesses in the sector.

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Objective and Structure

The scheme will provide affordable credit to exporters through a government-backed guarantee mechanism. Under the plan, banks and financial institutions will be able to extend loans to eligible exporters at lower interest rates, with the government covering a portion of the risk. The Department of Commerce confirmed that the scheme will be implemented in partnership with the Reserve Bank of India (RBI) and participating banks.
The credit facility will prioritize small and medium-sized enterprises (SMEs) and first-time exporters, who often face difficulties in accessing working capital. Qualified businesses can use the funds for operational costs, buying raw materials, and logistics related to exports. The program is expected to help exporters meet global shipping schedules and maintain supply chain consistency.

Broader Economic Impact

The government highlighted that the credit scheme is part of a broader strategy to strengthen India’s export sector and reduce dependency on imports. The Ministry of Commerce and Industry willl oversee the rollout of the scheme. Banks will have to report disbursement details to the government, and a dedicated portal will be set up for application and tracking. The scheme is expected to be operational within the next two months. 
Commerce Minister Piyush Goyal stated that this scheme will provide much-needed liquidity support to exporters, especially SMEs, and help them sustain and grow their businesses in a competitive global market. The government also noted that the initiative aligns with its vision of making India a global manufacturing and export hub.

Officials indicated that the scheme will be reviewed periodically to assess its impact and make necessary adjustments. The government remains committed to supporting exporters through targeted policy measures and financial incentives.