Content Two Interventions under NIRYAT PROTSAHAN — MSME Export Finance Support 9th Siddha Day Two Interventions under NIRYAT PROTSAHAN — MSME Export Finance Support Why in News ? The Government launched two finance-focused interventions under the Export Promotion Mission on 2 January 2026 to strengthen MSME exports: Interest Support for Pre- and Post-Shipment Export Credit Collateral Guarantee for Export Credit (via CGTMSE) These form part of the NIRYAT PROTSAHAN sub-scheme with a sharp focus on reducing export credit cost & improving finance access for MSMEs. Relevance GS-III | Indian Economy — Inclusive Growth, MSMEs, External Sector GS-III | Mobilisation of Resources — Credit, Financial Inclusion Core Concepts Pre-shipment credit → Working capital before goods are shipped. Post-shipment credit → Finance between shipment & receipt of export proceeds. Interest subvention → Government bears part of interest to lower borrowing cost. Collateral guarantee → Government-backed guarantee reduces collateral requirement and risk for banks. Intervention 1 — Interest Support for Export Credit Subvention Rate: Base support: 2.75% on pre- & post-shipment rupee export credit. Additional incentive: For under-represented / emerging markets (operationally notified). Coverage Criteria Applies only to positive-list tariff lines (HS-6 level). Coverage: ~75% of India’s tariff lines — sectors with high MSME participation. Annual Cap ₹50 lakh per IEC (FY 2025-26). Review Cycle Rates reviewed bi-annually (March & September) using domestic and global benchmarks. Positive-list Selection — Data-Driven Filters Priority: Labour-intensive & capital-intensive sectors, MSME density, value-addition. Excluded: Restricted/prohibited goods, waste & scrap, overlapping-scheme items. Included: Defence & SCOMET exports (strategic exports). Implementation RBI to issue operational guidelines; pilot rollout first, refinement based on feedback. Intervention 2 — Collateral Guarantee for Export Credit (CGTMSE) Guarantee Coverage Up to 85% — Micro & Small exporters. Up to 65% — Medium exporters. Exposure Limit Max ₹10 crore guaranteed exposure per exporter per FY. Design Logic Addresses collateral constraints & reduces bank risk → encourages export lending. Complements existing credit-guarantee schemes. Rollout CGTMSE to notify guidelines → pilot phase → integration into revised export-promotion framework. Export Promotion Mission — Scheme Architecture Cabinet Approval: 12 Nov 2025. Outlay: ₹25,060 crore | FY 2025-26 to FY 2030-31. Lead Ministries: Commerce, MSME, Finance. Focus Groups: MSMEs, first-time exporters, labour-intensive sectors, value-added & diversified exports. Two Sub-Schemes NIRYAT PROTSAHAN → Trade finance access & affordability. NIRYAT DISHA → Non-financial enablers (market access, branding, logistics, compliance, trade intelligence). Data-Backed Rationale MSMEs account for ~40% of India’s exports (est.) but face: High cost of export credit vs peers. Collateral shortages → low credit uptake. Working-capital stress in pre-shipment cycle. Schemes aim to: Lower cost of exporting Improve credit flow & market diversification Integrate MSMEs into global value chains (GVCs). Expected Outcomes Reduced interest burden → higher margins & competitiveness. Broader market outreach to emerging geographies. Higher formalisation & scale-up among export-oriented MSMEs. Strengthening of India’s export brand + product diversification. Support to export-led growth trajectory. Strengths Targeted (positive-list, HS-6) & evidence-based design. Incentivises strategic sectors & labour-intensive segments. Combines price instrument (interest subvention) + risk instrument (guarantee). Pilot-based iterative refinement → adaptive governance. Implementation Risks & Challenges Possible credit concentration in already-competitive sectors. Administrative capacity for tariff-line monitoring at HS-6 level. Moral hazard risk if bank lending standards dilute. Need for sync with export demand cycles & global trade slowdown risks. Coordination required across RBI, banks, CGTMSE, exporters. Way Forward Align incentives with productivity & value-addition metrics. Integrate with logistics efficiency, FTAs, export marketing support (under NIRYAT DISHA). Strengthen data monitoring dashboards — credit uptake, sectoral dispersion, NPA trends. Encourage first-time exporters via hand-holding & cluster-level facilitation. 9th Siddha Day Why in News ? The Ministry of Ayush is organising the 9th Siddha Day celebrations on 3 January 2026 in Chennai; National Siddha Day will be observed nationwide on 6 January (birth anniversary of Sage Agathiyar). Theme (2026): “Siddha for Global Health” — signalling the system’s role in preventive health, wellness, research, and global outreach. Vice President of India to preside; five eminent personalities to be honoured for outstanding contributions to Siddha medicine. Relevance GS-II | Health — Public Health, Human Resources, Governance of AYUSH GS-II | Welfare & Social Sector — Traditional Medicine in Healthcare Delivery Basics — Siddha System One of India’s oldest classical medical systems, rooted in Tamil tradition; attributed to Sage Agathiyar and other Siddhars. Major focus areas: Disease prevention, lifestyle regulation, dietetics, and rejuvenation (Kayakarpam) Triphase treatment model — body, mind, environment Materia medica — metals, minerals, herbo-mineral and plant formulations Institutional ecosystem National Institute of Siddha (NIS), Chennai Central Council for Research in Siddha (CCRS) Siddha Medical Colleges (TN & Kerala) Theme Significance — “Siddha for Global Health” Positions Siddha within: Global wellness & integrative healthcare Lifestyle-linked NCD prevention (diet, regimen, stress, ageing) Traditional medicine diplomacy & soft power Aligns with WHO Traditional Medicine Global Strategy and India’s efforts to mainstream Ayush in public health frameworks. Policy Context — Ayush & Siddha Mainstreaming Supports national priorities in: AYUSH-based preventive care & wellness tourism Research collaboration and pharmaco-standardisation Curriculum expansion, PG/PhD capacity & clinical training International recognition & cross-border knowledge partnerships Data-Driven Context Siddha has strong regional footprint in Tamil Nadu & southern India with growing outreach through: Government hospitals & teaching institutions Research programmes under CCRS Integration in primary wellness services & public health campaigns Event strengthens research translation, documentation, and dissemination to widen acceptance. Expected Outcomes Higher public awareness & institutional visibility of Siddha. Stronger research networks, publication pipelines, and clinical validation. Boost to human-resource development & academic excellence. Support for international collaborations, innovation, and global positioning of Indian systems of medicine. Strengths Deep preventive-care orientation (diet–lifestyle–environment). Strong textual & practitioner knowledge base. High potential in chronic illness management, geriatrics, wellness & rehabilitation. Contributes to health pluralism & patient choice. Challenges Need for standardised formulations & quality control. Evidence generation, clinical trials & documentation must scale. Integration with modern public-health protocols & safety standards required. Human-resource and infrastructure gaps across non-TN regions. Way Forward Expand multi-centric clinical research with CCRS–ICMR partnerships. Create digital pharmaco-registry & outcome-tracking systems. Strengthen curriculum, faculty development, and international academic chairs. Promote Siddha wellness tourism & global certification pathways. Enhance public-health integration (NCD clinics, lifestyle counselling, primary care support).