Merchandise Exports from India Scheme Boosting MSME Export Growth

The Indian Government, through several schemes, aims to assist MSMEs in expanding their export potential. These programs provide financial incentives, tax exemptions, and technical support, making it easier for small and medium enterprises to penetrate global markets. Below, we discuss some of the major export-specific government schemes designed to help MSMEs grow internationally.

Know More

Merchandise Exports from India Scheme

MEIS aims to incentivize exports of certain goods by offering rewards to exporters.

How the Government Helps
The government supports exporters by providing rewards as a percentage of the export value, usually in the form of duty credit scrips. These scrips can be used to pay import duties, taxes, or even traded to reduce operational costs. The primary goal is to enhance the competitiveness of Indian products in global markets.
How This Benefits MSMEs
This initiative helps MSMEs by reducing export costs, making international trade more affordable. Lower operational costs enable MSMEs to offer competitive pricing, increasing their global market presence. Additionally, the duty credit scrips improve profitability by offsetting various duties, encouraging MSMEs to expand their reach in international markets.

Duty Drawback Scheme

The Duty Drawback Scheme allows MSMEs to claim refunds on import duties paid on raw materials used in the manufacture of export goods.

How the Government Helps
The government provides refunds on customs duties, excise duties, and taxes paid on materials used in the production of exported goods. These refunds can be claimed for both direct and indirect taxes, reducing the overall financial burden on exporters.
How This Benefits MSMEs
By offsetting the costs of imported raw materials, duty refunds help MSMEs lower manufacturing expenses and improve profit margins. This support encourages businesses to scale up production without concerns about excessive taxes. Additionally, the savings can be reinvested into operations, fostering long-term growth and sustainability in exports.

Duty Drawback Scheme

The Duty Drawback Scheme allows MSMEs to claim refunds on import duties paid on raw materials used in the manufacture of export goods.

Services Exports from India Scheme

SEIS incentivizes the export of services from India, including IT, consultancy, education, engineering, and other professional services.

How the Government Helps
The government supports service exporters by offering financial rewards based on the foreign exchange they earn. These benefits are provided as a percentage of service exports and are paid out in the form of duty credit scrips, which can be used to offset various duties and taxes.
How This Benefits MSMEs
MSMEs in the service sector receive monetary support, enabling them to scale their export operations. The scheme also helps businesses expand into international markets more efficiently while maintaining a competitive edge by reducing operational costs and allowing them to offer services at more attractive rates globally.

Export Promotion Capital Goods Scheme

The EPCG scheme allows MSMEs to import capital goods required for the production of export goods at zero or concessional duty.

How the Government Helps
The government allows MSMEs to import machinery, equipment, and technology required for manufacturing export goods without paying customs duties. This initiative helps businesses enhance their manufacturing processes, improve product quality, and scale up operations efficiently.
How This Benefits MSMEs
By eliminating customs duties on capital goods, MSMEs can significantly reduce production costs. This enables them to modernize their manufacturing facilities, boost efficiency, and meet growing export demands. Additionally, upgraded equipment enhances product quality, making MSMEs more competitive in global markets.

Export Promotion Capital Goods Scheme

The EPCG scheme allows MSMEs to import capital goods required for the production of export goods at zero or concessional duty.

Focus Product Scheme

This scheme provides incentives for MSMEs exporting certain products identified by the government as having high export potential.

How the Government Helps
The government offers incentive rewards as a percentage of the export value for specific products. Priority is given to sectors with high export potential, such as handicrafts, textiles, agro-products, and engineering goods, to boost their presence in global markets.
How This Benefits MSMEs
This scheme helps MSMEs in targeted sectors by providing financial support, making it easier for them to expand internationally. By focusing on high-demand products, businesses can enhance their competitiveness and tap into new market opportunities, ultimately driving growth and profitability.

Advance Authorization Scheme

This scheme enables MSMEs to import raw materials and intermediate goods duty-free, provided they are used to produce goods that will be exported.

How the Government Helps
The government allows MSMEs to import raw materials at zero or concessional duty, provided they meet the eligibility criteria of the scheme. These imported materials must be used for manufacturing export products, enabling businesses to lower their production costs.
How This Benefits MSMEs
By reducing raw material costs, MSMEs can offer more competitive prices in the global market. Duty-free imports also enable businesses to scale production efficiently without additional financial strain. Additionally, access to high-quality materials at lower costs enhances product quality and strengthens their competitiveness in international markets.

Advance Authorization Scheme

This scheme enables MSMEs to import raw materials and intermediate goods duty-free, provided they are used to produce goods that will be exported.

Export Credit Guarantee Corporation

The ECGC scheme insures MSMEs against payment defaults by foreign buyers, reducing the financial risk in international trade.

How the Government Helps
The government provides export credit insurance to cover political and commercial risks in global trade. It offers short-term and long-term coverage, helping MSMEs mitigate payment risks and confidently expand into international markets.
How This Benefits MSMEs
The ECGC reduces payment risks by compensating MSMEs in cases of non-payment or delays by foreign buyers, ensuring financial stability. With export credit insurance, MSMEs can confidently expand into global markets without fear of defaults. Additionally, it enhances their creditworthiness, making it easier to secure financing and grow their export operations.

State-Specific Export Assistance Schemes

Various state governments in India have developed export-specific programs designed to boost the export capabilities of local MSMEs.

How the Government Helps
State governments offer financial support, subsidies, and tax exemptions tailored to regional industries. They also provide infrastructure development assistance, making exports more accessible and cost-effective for MSMEs, helping them expand in global markets.
How This Benefits MSMEs
MSMEs benefit from region-specific programs that address local export challenges, enhancing their competitiveness. State-backed initiatives provide financial and infrastructural support, boosting export potential. With both state-specific and national incentives, MSMEs gain comprehensive assistance to expand their global reach efficiently.

State-Specific Export Assistance Schemes

Various state governments in India have developed export-specific programs designed to boost the export capabilities of local MSMEs.

How Yugalinks Helps MSMEs Access Export-Specific Schemes

At Yugalinks, we specialize in assisting MSMEs in accessing export-specific government schemes. Our technology-driven platform ensures that MSMEs benefit from all available schemes effectively and efficiently.

Our Approach

End-to-End Scheme Assistance

We help MSMEs identify the most relevant schemes, such as MEIS, EPCG, and Duty Drawback, that align with their export activities.

We guide MSMEs step-by-step through the application process, ensuring compliance with government guidelines and criteria.

Expert Advisory & Consultancy

Our team offers consultancy services to help MSMEs navigate the complex world of government export schemes.

We provide insights on the latest updates to export policies and schemes, ensuring that MSMEs are always in the loop.

Document Preparation & Eligibility Checks

Our team assists in preparing the necessary documentation for export-specific schemes, ensuring everything is in order for submission

We also conduct eligibility checks, ensuring that MSMEs meet the requirements for each scheme, preventing delays or rejection.

Technology-Enabled Tracking & Updates

Yugalinks uses digital tools to track the status of scheme applications, providing timely notifications and updates to ensure that MSMEs don’t miss important deadlines.

MSMEs can easily access real-time information on their application status, claims, and benefits through our platform

Training & Knowledge Transfer

Yugalinks organizes workshops and training sessions to keep MSMEs informed about the schemes that can help them grow their export business.
Through these sessions, we empower MSMEs to make the most of the schemes and tools available to them.

Join Yugalinks Elevate India’s Global Trade !

At Yugalinks, we are shaping a brighter future for India’s export ecosystem. Join us in our mission to make India the world's top exporter. Together, we’ll drive global trade growth and create lasting opportunities for future exporters.

Join Now