DGFT trade notice Trade Notice No. 32/2025-26 · 06 Mar 2026
Official title
Guidelines-Support for Emerging Export Opportunities under Export Promotion Mission (EPM) – NIRYAT PROTSAHAN
Official record
Open source pageSummary
Check the official recordThe government implements the Support for Emerging Export Opportunities under the Export Promotion Mission to provide risk-sharing support for MSME exports to under-served markets. Eligible MSMEs receive credit enhancement for bank-intermediated trade finance transactions through the Export-Import Bank of India and the National Credit Guarantee Trustee Company. The intervention covers non-recourse instruments including Letters of Credit, Stand-by Letters of Credit, and Risk Participation. MSMEs must obtain a Unique Identification Number via the DGFT portal and apply through a partner bank. The scheme provides risk coverage ranging from 10% to 80% based on a risk model. Stakeholders may submit feedback on the guidelines within 30 days of the notice date.
What you must do
Key dates
Who is affected
Thresholds
Exceptions
If you do not comply
1 | P a g e
Government of India Ministry of Commerce & Industry Department of Commerce Directorate General of Foreign Trade Vanijya Bhawan, New Delhi
Trade Notice No. 32/2025-26 Dated: 6th March 2026
Subject: Launch of Support for Emerging Export Opportunities under Export Promotion Mission (EPM) – NIRYAT PROTSAHAN – reg.
The Support for Emerging Export Opportunities under Export Promotion Mission (EPM) – NIRYAT PROTSAHAN is hereby implemented prospectively with immediate effect.
The intervention seeks to facilitate enhanced global trade connectivity and liquidity in under-served markets by enhancing confidence in trade settlements, strengthening the capacity of banks to support constrained cross-border transactions, and fostering partnerships between Indian banks and local banks abroad.
Risk-sharing support, backed by the Government of India through the Export-Import Bank of India (Exim Bank), will be available under the Intervention. This will help MSMEs (involved in international value chains) access trade finance for exports to under-served markets and boost competitiveness through non-recourse trade finance instruments from banks.
The detailed Policy framework is enclosed as ANNEXURE-I. The Operational and Procedural Guidelines is enclosed as ANNEXURE-II. The governance Structure is enclosed as ANNEXURE-III.
2 | P a g e
The intervention shall be operationalised on a pilot basis for feedback, institutional learning, and data-driven refinements. Guidelines for banks is enclosed at ANNEXURE-IV, and pilot implementation are enclosed at ANNEXURE-V.
The guidelines are further submitted for stakeholder feedback in accordance with Paragraph 1.07A of the Foreign Trade Policy (FTP) 2023. Stakeholders may submit comments and suggestions on the Guidelines within 30 days from the date of issuance of this Trade Notice, through email at epm-dgft@gov.in
This is issued with the approval of the Competent Authority.
B KRUTI Digitally signed by B KRUTI Date: 2026.03.06 15:12:04 +05'30' B Kruti Deputy Director General of Foreign Trade
(Issued from F. No. 01/02/72/AM-26/EPM)
3 | P a g e
ANNEXURE-I
POLICY FRAMEWORK FOR SUPPORT FOR EMERGING EXPORT OPPORTUNITIES
1. Objective
a. The objective is to support enhanced global trade connectivity and liquidity in under-served markets by increasing confidence of counterparties in settlement of trade transactions.
b. The initiative will enhance the capacity of scheduled commercial banks to support cross-border trade transactions involving markets where trade lines are constrained or where the potential has not been harnessed, and transactions may not materialise in the absence of such support.
c. It will also enable local banks in target countries in establishing working partnerships with large number of commercial banks in India.
2. Scope and Coverage
a. The Intervention will provide risk-sharing support for eligible trade finance transactions supported by banks.
b. The risk-sharing support shall be available exclusively to eligible MSMEs (involved in international value chains) for their bank-intermediated trade transactions in under-served markets, and shall be subject to such ceilings, conditions, and safeguards as may be notified.
c. The detailed operational framework—including eligibility conditions, application and claim procedures, reporting and monitoring requirements, and verification mechanisms—are prescribed under ANNEXURE-II enclosed.
4 | P a g e
3. Benefits to Exporters
a. Access to High-Risk or Under-served Markets: This intervention enables Indian exporters to access high-risk or under-served markets by bridging the financing gaps.
b. Partnerships with Overseas Banks: Exim Bank has established partnerships with over 140 overseas banks across 60 countries.
c. Credit Enhancement: The Intervention provides credit enhancement to trade instruments, enhancing the capacity of commercial banks to support cross-border trade transactions.
d. Risk Mitigation Support: The Intervention offers risk mitigation support helping Indian banks to enhance their trade finance exposure in under-served markets.
e. Support for Local Banks: The Intervention enables local banks in target countries to establish working partnerships with commercial banks in India.
5 | P a g e
ANNEXURE-II
OPERATIONAL AND PROCEDURAL GUIDELINES FOR SUPPORT FOR EMERGING EXPORT OPPORTUNITIES
1. Eligibility, Scope, and Coverage
a. All MSMEs involved in international value chains holding a valid Importer-Exporter Code (not in the Denied Entity List) and a valid MSME Udyam Registration Number shall be eligible for support under the intervention.
b. Exports of all goods permitted for exports under the Foreign Trade Policy of the Government of India shall be eligible, subject to a negative list under the intervention (ANNEXURE-VI).
c. Support shall be available for transactions involving under-served markets identified under the Intervention (ANNEXURE-VII). The list shall be reviewed periodically based on India’s integration with these markets, demand in these markets, and India’s untapped potential.
d. The Intervention will provide risk-sharing support for eligible trade finance transactions supported by banks.
2. Activities / Instruments Supported
The various non-recourse credit mechanisms supported under the Intervention include:
(i) Stand-by Letters of Credit (SBLC) (ii) Risk Participation (RP) (iii) Irrevocable Reimbursement Undertaking (IRU) (iv) Letter of Credit (LC) Confirmation (v) Letter of Credit Negotiation (vi) Usance Payable at Sight Letter of Credit (UPAS LC)
3. Implementing Framework
a. Exim Bank, along with the National Credit Guarantee Trustee Company Ltd (NCGTC), shall be the implementing agency for the intervention
6 | P a g e
b. MSME will generate a UIN (Unique Identification Number) online by applying on DGFT portal.
c. Scheduled commercial banks shall sign Master Risk Participation Agreement (MRPA)/Confirming Bank Agreement (CBA) with Exim Bank for eligible instruments.
d. The level of risk-sharing support in export transactions and risk participation fee shall be determined in accordance with the assessed risk profile and applicable exposure limits.
e. MSME shall apply to eligible lending institution with the UIN, and application shall be received from the lending institutions by Exim Bank.
f. Interest subvention support may be extended separately under other EPM Interventions for eligible instruments.
4. Nature and Extent of Assistance
Under this Intervention, partial or full support for risk of non-payment will be extended to partner banks to enhance access to trade finance for exports in under-served markets and boost competitiveness through non-recourse trade finance instruments.
5. Level of Assistance
Exim Bank may extend up to 100% cover for eligible instruments. Risk-sharing support under the intervention by way of unconditional and irrevocable guarantee shall be extended to Exim Bank in the range of 10% to 80% of the transaction value, based on score determined from the comprehensive risk model, as illustrated below, with the balance risk covered by Exim Bank / partner bank. The risk coverage will be reviewed periodically by the Sub-Committee on Trade Finance.
| Risk Category | Score Range | Cover under the scheme (%) |
|---|---|---|
| Very High Risk | 60-64* | 80 |
| 65-69 | 75 | |
| High Risk | 70-74 | 70 |
| 75-79 | 60 |
7 | P a g e
| 80-84 | 50 | |
|---|---|---|
| Moderately High Risk | 85-89 | 40 |
| 90-94 | 30 | |
| Low Risk | 95-97 | 20 |
| 98-100 | 10 |
*Transactions with a score below 60 will not be eligible for support.
6. Exposure Limit
Maximum liability permissible (MLP) at any point of time for support under this Intervention will be 10 times of the corpus fund, with suitable country caps, exporter-wise exposure caps, transaction-wise exposure caps, and issuing bank-wise exposure caps, as defined below.
a) Country caps would be 15% of MLP. b) Exporter-wise exposure cap would be 5% of the MLP. c) Transaction-wise exposure cap would be 1% of the MLP. d) Issuing bank-wise exposure cap would be 10% of the MLP.
7. Intent Filling
a. Applicants shall submit an online application on DGFT portal indicating their intent to avail risk-sharing support for eligible trade finance transactions, via the online portal.
