The Indian government offers various Export Promotion Schemes for Micro, Small, and Medium Enterprises (MSMEs) to support international growth, boost export competitiveness, and simplify market entry. These schemes provide financial assistance, incentives, and technical support to help MSMEs enhance their export capabilities.

Here’s an overview of the primary export promotion schemes available for MSMEs in India:

1. Merchandise Exports from India Scheme (MEIS)

• Purpose: To encourage the export of specific products by providing financial incentives.
• Incentive: Under MEIS, exporters of notified goods are granted a duty credit scrip, which can be used to pay for customs duties or sold in the market.
• Eligibility: MSMEs involved in exporting notified goods to specified countries.
• Benefit: Incentives range from 2% to 5% of the Free on Board (FOB) value of exports.

2. Export Promotion Capital Goods (EPCG) Scheme

• Purpose: Facilitates the import of capital goods required for production at zero customs duty.
• Incentive: Allows duty-free import of capital goods, machinery, and equipment.
• Eligibility: MSMEs that commit to achieving a minimum export obligation over six years.
• Benefit: Reduces capital costs, enabling MSMEs to improve production capacity and product quality.

3. Interest Equalization Scheme (IES)

• Purpose: To reduce the interest burden on MSME exporters by providing an interest subsidy.
• Incentive: Offers a 3% to 5% interest rate subvention on pre- and post-shipment credit.
• Eligibility: MSME exporters in manufacturing and certain service sectors.
• Benefit: Reduces borrowing costs, improving export competitiveness by making financing affordable.

4. Market Access Initiative (MAI)

• Purpose: Provides financial assistance for market promotion, trade fairs, and buyer-seller meets.
• Incentive: Grants for participation in international exhibitions, product registrations, and market studies.
• Eligibility: Exporting MSMEs seeking to enter new markets.
• Benefit: Helps MSMEs expand globally, promote their products abroad, and gather market insights.

5. National Export Insurance Account (NEIA) Scheme

• Purpose: Facilitates the extension of export credits and risk coverage.
• Incentive: Insurance and credit facilities for projects that may lack conventional insurance.
• Eligibility: MSMEs engaged in exports, especially in high-risk countries.
• Benefit: Provides risk coverage, ensuring MSMEs are financially protected from losses due to buyer default.

6. Single Point Registration Scheme (SPRS)

• Purpose: Supports MSMEs in securing government orders without the need for earnest money deposits.
• Incentive: Enlists MSMEs on the Government e-Marketplace (GeM) for procurement, exempting them from submission of EMD.
• Eligibility: MSMEs registered with the National Small Industries Corporation (NSIC).
• Benefit: Eases participation in government tenders, enabling MSMEs to tap into government procurement opportunities.

7. Trade Infrastructure for Export Scheme (TIES)

• Purpose: Develops export infrastructure and logistical support for MSMEs.
• Incentive: Financial assistance to improve trade-related infrastructure, such as testing labs, quality certification centers, and warehouses.
• Eligibility: State governments, export promotion councils, and MSME associations.
• Benefit: Enhances export capacity, particularly in rural and semi-urban areas, by ensuring easy access to required facilities.

8. Transport and Marketing Assistance (TMA) Scheme

• Purpose: Reduces transportation and logistics costs for agricultural product exports.
• Incentive: Provides subsidies on freight costs for specified agricultural products.
• Eligibility: MSMEs involved in exporting eligible agricultural products.
• Benefit: Lowers transportation costs, enhancing competitiveness in international markets.

9. Credit Linked Capital Subsidy Scheme (CLCSS)

• Purpose: Supports MSMEs in upgrading technology and manufacturing practices.
• Incentive: Provides a 15% subsidy on capital investments for technology upgrades.
• Eligibility: MSMEs engaged in manufacturing and exporting.
• Benefit: Enables MSMEs to modernize their production processes and improve quality, enhancing export potential.

10. Duty Drawback Scheme (DBK)

• Purpose: Refunds duties paid on imported inputs used in the manufacturing of exported products.
• Incentive: Rebates customs and excise duties on raw materials and inputs used in exports.
• Eligibility: MSMEs involved in exporting goods with imported components.
• Benefit: Reduces production costs by refunding duty payments, improving profit margins on exports.

11. Export Credit Guarantee Corporation (ECGC) Scheme

• Purpose: Protects MSMEs against payment risks by providing export credit insurance.
• Incentive: Offers insurance on export credits to safeguard against potential defaults by overseas buyers.
• Eligibility: All exporting MSMEs, especially those exporting to high-risk markets.
• Benefit: Enhances confidence in international dealings, allowing MSMEs to explore new markets safely.

These schemes play a significant role in promoting MSMEs’ presence in global markets by providing financial aid, risk protection, and infrastructure support. MSMEs can use these schemes to reduce costs, increase product quality, and build international networks.