Indian equity markets concluded January 2, 2026, on a historic note with the Nifty touching a life high of 26,329 and the Sensex surging 573 points to close at 85,762. This remarkable performance reflected strong investor optimism following the government's announcement of comprehensive support measures for MSME exporters under the 'Niryat Protsahan' sub-scheme. The rally extended the market's upward momentum, signaling renewed confidence in India's economic growth trajectory and policy framework designed to strengthen export competitiveness.
The commerce department unveiled a comprehensive ₹7,295 crore credit support package targeted at MSME exporters, addressing critical financing challenges faced by small businesses. According to reports from Zee News, the Federation of Indian Export Organisations (FIEO) welcomed the launch of these two critical interventions under the 'Niryat Protsahan' sub-scheme, aimed at strengthening MSME exports and significantly improving access to affordable trade finance. This comprehensive package represents a direct response to persistent complaints from Indian businesses regarding the lack of easy access to credit and high interest rates that put them at a disadvantage globally.
The interest subsidy scheme has been allocated ₹5,181 crore spread over six years starting from the current fiscal year. The scheme offers a base interest subvention of 2.75% on pre- and post-shipment rupee export credit, with rates to be reviewed bi-annually in March and September. According to Zee News, the interest support applies to exports under a notified positive list covering nearly 75% of India's tariff lines, reflecting sectors with high MSME participation. The government has capped the annual interest subsidy assistance at ₹50 lakh per Importer Exporter Code (IEC) for FY2025-26, with provisions for additional incentives for exports to emerging markets.
The second intervention features a collateral support corpus of ₹2,114 crore, spread over six years, implemented in partnership with the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). As reported by Zee News, guarantee coverage of up to 85% will be available for micro and small exporters and up to 65% for medium exporters, with a maximum guaranteed exposure of ₹10 crore per exporter per financial year. This mechanism reduces risk for lenders and addresses the long-standing demand of the exporting community, particularly small exporters who struggle to meet collateral requirements.
The government has given a significant push to domestic electronics manufacturing by approving 22 investment proposals under the Electronics Component Production-Linked Incentive (PLI) scheme. This move signals a strategic effort to enhance local production capabilities and reduce import reliance, contributing to the positive market sentiment. However, despite the stock market rally, the Indian rupee weakened to 90.12 against the US dollar, reversing earlier gains due to persistent dollar demand and thin market liquidity that kept pressure on the domestic currency.
FIEO president SC Ralhan welcomed the initiative, stating that "The launch of interest support for pre- and post-shipment export credit and the collateral guarantee mechanism marks a decisive step towards addressing two of the biggest challenges faced by MSME exporters—high cost of credit and lack of collateral. These measures will greatly enhance the competitiveness of Indian MSMEs in global markets." According to Zee News, both interventions will be implemented initially on a pilot basis with continuous monitoring and refinements. The Export Promotion Mission (EPM) has a total outlay of ₹25,060 crore for the period FY 2025-26 to FY 2030-31, with detailed operational guidelines to be issued by the Reserve Bank of India and CGTMSE.