In an effort to assist exporters in the face of uncertain global commerce, the government has extended interest subvention benefits to micro and small businesses exporting 167 categories of iron and steel goods. Medium-sized businesses are no longer included in the program. 

The Directorate General of Foreign Trade claims that only export credit obtained by micro and small businesses will be eligible for the benefit. The program is a part of a larger ₹7,295-crore export support package that was previously announced. This package includes ₹2,114 crore for collateral-free financial support and ₹5,181 crore for interest subvention. The plan will be put into action between 2025 and 2031, a span of six years. 

Separately, the government has updated export requirements for baryte, a crucial mineral used in oil and gas drilling, paints, and plastics. Exporters must get licenses for certain grades, namely Grade A and Grade B, which have been placed within the restricted category. 

The policy changes are intended to support exporters who are experiencing volatility as a result of geopolitical tensions, especially in West Asia, and stabilize domestic supply chains. 

Source – The Economic Times