
The initiatives under the Mission focus on credit availability at easier terms, strengthening factoring services as an alternate financing instrument, and addressing non-tariff barriers imposed by other countries. A key emphasis will be on expanding factoring services to reduce exporters’ dependence on banks.
Despite being a widely used financing tool globally, export factoring services have seen limited adoption in India due to high interest rates, risk premiums, and lack of parity with subvention schemes. The government aims to increase cross-border factoring, noting that India has significantly fewer factoring companies compared to over a thousand in China.
The Mission will merge the Interest Equalisation Scheme, lab-grown diamond scheme, and Market Access Initiatives (MAI), with an average collateral cover and a cap on individual exporters, targeting over 1 lakh exporters. While RBI is working on a unified lending mechanism, surveys by ICRIER, DGFT, and FIEO highlight that 80% of MSMEs face collateral demands, making export credit facilitation a critical issue.
The Mission is a merger of Interest Equalisation Scheme, lab diamonds scheme and Market Access Initiatives (MAI), with an average collateral cover to be given with cap on individual exporters and a target of over 1 lakh exporters. While RBI is working on a unified lending mechanism, surveys by ICRIER, DGFT and FIEO have indicated export credit facilitation as an issue for exporters as 80% MSMEs faced demand for collateral.