Content

1. Two Interventions under NIRYAT PROTSAHAN — MSME Export Finance Support
2. 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).