Govt extends interest subsidy to MSME iron and steel exporters; curbs Baryte exports

The Government of India has taken a significant step to support the country’s export ecosystem by extending interest subvention benefits to micro and small enterprises involved in iron and steel exports. This move comes at a time when exporters are facing mounting pressure due to global uncertainties, fluctuating demand, and rising input costs.

Under the latest notification issued by the Directorate General of Foreign Trade (DGFT), a total of 167 iron and steel product categories have been made eligible for interest subvention. The benefit, however, is limited strictly to micro and small enterprises, with medium-sized units excluded from the scheme. The initiative is part of a broader export support package announced earlier, aimed at improving liquidity and easing credit access for exporters.

The interest subvention scheme is a key component of the Rs 7,295 crore export support package unveiled by the government. This includes Rs 5,181 crore allocated for interest subsidies and Rs 2,114 crore towards collateral-free credit support. The scheme is planned to be implemented over a six-year period from 2025 to 2031, providing long-term relief and stability to exporters.

In a parallel development, the government has also introduced export restrictions on specific grades of Baryte, a mineral widely used in industries such as paints, plastics, and oil and gas drilling. As per the DGFT notification, Grade A and Grade B Baryte have been placed under the restricted category, requiring exporters to obtain licenses before shipment. However, Grade CDW continues to remain under the free export category.

This dual approach reflects the government’s strategy to balance export promotion with resource management. While financial support is being extended to iron and steel exporters, critical raw materials like Baryte are being regulated to ensure domestic availability amid global supply disruptions.

Overall, these measures are expected to strengthen India’s export competitiveness while safeguarding key industrial inputs, particularly in sectors linked to infrastructure, energy, and manufacturing.