The Directorate General of Foreign Trade (DGFT), under Trade Notice No. 25/2025-26 dated 20 February 2026, has operationalised the “Support for Alternative Trade Instruments” under the Export Promotion Mission (EPM) – NIRYAT PROTSAHAN with immediate effect . The intervention aims to enhance export finance access for MSMEs involved in international value chains by providing structured support for export factoring arrangements, including recourse and non-recourse factoring in INR or freely convertible foreign currency. Eligible MSMEs with valid IEC and Udyam Registration can claim interest subvention at 2.75% on export factoring interest costs, subject to an annual cap of ₹50 lakh per financial year and restricted to a notified positive list of 4,139 HS six-digit tariff lines.
The scheme will operate on a pilot basis and is governed through a Sub-Committee on Trade Finance. Claims must be filed online through a designated portal with detailed export and factoring disclosures. Support is not available for deemed exports or SEZ supplies, and strict compliance and verification safeguards apply .
Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Vanijya Bhawan, New Delhi
Trade Notice No. 25/2025-26-DGFT | Dated: Dated: 20th February 2026
Subject: Launch of Support for Alternative Trade Instruments under Export Promotion Mission (EPM) – NIRYAT PROTSAHAN – reg.
The Support for Alternative Trade Instruments intervention under Export Promotion Mission (EPM) – NIRYAT PROTSAHAN is hereby implemented prospectively with immediate effect.
2. The intervention seeks to strengthen access to export finance for MSMEs (involved in international value chains) through structured support for alternative trade finance mechanisms, to supplement bank-based export credit, with an initial focus on export factoring.
3. Export factoring arrangements, including both recourse and non-recourse factoring, and denominated in Indian Rupees or freely convertible foreign currencies, entered between eligible MSMEs (involved in international value chains) and Reserve Bank of India (RBI) or International Financial Services Centres Authority (IFSCA) regulated entities shall be supported.
4. The detailed Policy framework is enclosed as Annexure-I. The Operational and Procedural Guidelines is enclosed at Annexure-II. The governance Structure is enclosed at Annexure-III
5. The intervention shall be operationalised on a pilot basis for feedback, institutional learning, and data-driven refinements. The procedure for availing the given support is enclosed at Annexure-IV
6. 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
Deputy Director General of Foreign Trade
(Issued from F. No. 01/02/34/AM-26/EPM)
