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).
