Support for Emerging Export Opportunities for MSME Exporters

Unable to Export to High-Risk or New Markets?

Many small and medium-sized enterprise (MSME) exporters are hesitant to begin exporting to emerging markets as well as less developed areas because there are higher levels of payments risk, no reliable sources of information about the creditworthiness of buyers, and little assistance from commercial banking. As a result, many banks and other financial institutions are very conservative when providing financing to support exports to these markets, which limits an exporter’s opportunity to pursue new export business.

As a result of this risk aversion MSME exporters miss out on opportunities that will provide them with increased revenue and profitability due to increasing demand for their products globally.This initiative is part of the broader Export Promotion Mission framework designed to strengthen India’s export ecosystem.

What is Support for Emerging Export Opportunities?

Support for Emerging Export Opportunities is a government backed program under the Export Promotion Mission (EPM-Niryat Protsahan), designed to allow exporters to safely develop new export markets as well as expand into under-served global markets.

The EPM-Niryat Protsahan program has implemented a Risk Sharing Program, which will assist banks and other financial institutions to reduce the risk they take by lending money to MSME exporters; thereby allowing the lenders to be more willing to lend money to MSME exporters who want to start exporting to new and emerging markets.

What is the Actual Benefit for Exporters?

The scheme significantly improves access to trade finance for challenging markets:

• Risk-sharing support up to 100% for eligible trade finance instruments
• Government-backed guarantee support through Exim Bank and NCGTC
• Increased lender confidence leading to higher approval rates
• Ability to export to markets previously considered high-risk

Example:

• Export opportunity in Africa or Southeast Asia
• Bank initially hesitant due to payment risk
• Scheme provides risk coverage → transaction gets approved

This enables exporters to unlock new global markets with reduced financial risk.

Exporters can further reduce borrowing costs by leveraging interest subvention schemes for export credit.

Key Advantages of the Scheme

• Access to high-risk and under-served international markets
• Network support with 140+ overseas banks across 60+ countries
• Credit enhancement for export transactions
• Reduced risk of payment default
• Improved competitiveness in global trade

Trade Finance Instruments Covered

The scheme supports multiple structured trade finance instruments:

• Stand-by Letter of Credit (SBLC)
• Risk Participation (RP)
• Irrevocable Reimbursement Undertaking (IRU)
• Letter of Credit (LC) Confirmation
• LC Negotiation
• UPAS Letter of Credit

These instruments provide flexibility in structuring export transactions based on risk and buyer profile.

Who is Eligible?

• MSME exporters engaged in international trade
• Valid Importer Exporter Code (IEC) (not in Denied Entity List)
• Valid Udyam Registration
• Exporting to notified under-served markets
• Transactions routed through eligible banks and institutions

Documents Required

• IEC Certificate
• Udyam Registration Certificate
• Export product and HSN code details
• Target export markets
• Bank details
• Trade finance requirement details

How to Apply for This Scheme

1. Apply on the DGFT portal and submit intent
2. Generate UIN (Unique Identification Number)
3. Approach partner bank with UIN
4. Bank evaluates transaction and forwards proposal
5. Exim Bank conducts risk assessment
6. NCGTC provides guarantee approval
7. Trade finance support is extended

Note: Approval timelines can be as fast as 4 working days, depending on documentation and risk evaluation.

Important Conditions to Know

• Applicable only for MSME exporters
• Limited to eligible under-served countries / markets
• Transactions must be directly linked to exports
• Not applicable for restricted or prohibited goods
• Subject to risk assessment and approval by authorities

Eligible Export Markets

The scheme focuses on expanding exports to under-served regions such as:

• Africa: Kenya, Ghana, Nigeria, etc.
• Asia: Vietnam, Indonesia, Sri Lanka, etc.
• Latin America: Brazil, Mexico, Peru, etc.
• Europe & CIS: Kazakhstan, Turkey, Uzbekistan, etc.

These markets offer high growth potential but are often underserved due to financing constraints.

Who Should Apply?

This scheme is ideal for:

• Exporters entering new or high-risk international markets
• MSMEs facing payment security concerns
• Businesses requiring structured trade finance support
• Exporters looking to diversify beyond traditional markets

How Afleo Helps You

• Eligibility assessment and scheme mapping
• UIN generation and DGFT compliance support
• Identification of suitable trade finance instruments
• Coordination with banks and Exim Bank
• Documentation and application support
• End-to-end assistance until transaction execution

Reduce risk, improve approval chances, and expand confidently.

Speak to Export Finance Expert

Why This Scheme is Important

The importance of this scheme is based on the fact that expanding to foreign markets is crucial for medium- and long-term export development; however, many MSMEs are limited in their ability to expand due to a lack of access to finance. Therefore, the scheme provides a structure for supporting some of those risks that will enable MSMEs to enter new markets, obtain payment, and grow their exports with more confidence than they would have had otherwise.