How India's New Export Credit Policy Will Help Small Sellers on Amazon, Flipkart Commerce, and ONDC Go Global
📌 Quick Summary Under the Rs 25,060 crore Export Promotion Mission (EPM), the DGFT on March 6, 2026 issued guidelines giving small MSME e-commerce exporters access to working capital credit with interest subvention of 2.75% per annum (capped at Rs 50 lakh/year) plus partial credit guarantees. Implementing agencies: Exim Bank and NCGTC. Eligibility: 6 months of courier/postal export history OR 1 year of domestic e-commerce operations.
Imagine a handloom weaver in Varanasi shipping silk sarees to buyers in Germany through Amazon Global Selling, or a Jaipur block-print artisan fulfilling orders on eBay through ONDC’s cross-border infrastructure. The dream of Indian small sellers going global has always been real — but it has been blocked by one stubborn wall: access to affordable working capital before the goods even leave the warehouse.
That wall just got a significant crack. On March 6, 2026, India’s Directorate General of Foreign Trade (DGFT) issued formal guidelines rolling out credit support for MSME e-commerce exporters under the Rs 25,060 crore Export Promotion Mission (EPM). This is not a vague policy announcement — it is a live, operational pilot with real interest subvention rates, defined eligibility, named implementing banks, and a digital application portal already active on the DGFT website.
As someone who has tracked India’s export finance architecture for 15 years, I can tell you that this is one of the most targeted and well-structured interventions for e-commerce exporters that has come out of the Commerce Ministry in recent memory. Here is everything you need to know — broken down clearly for sellers on Amazon, Flipkart Commerce, and ONDC.
The Problem This Policy Is Solving: Why Small E-Commerce Exporters Were Stuck
India’s B2C e-commerce exports currently stand at approximately USD 2 billion — a figure that sounds impressive until you realise the global B2C e-commerce market is projected to reach USD 8 trillion by 2030. India’s share is a rounding error.
The reason is not demand. Global consumers are increasingly buying Indian handicrafts, textiles, spices, wellness products, and electronics accessories. The reason is supply-side finance. A small seller on Amazon Global Selling or ONDC’s cross-border channel faces a deeply painful cash-flow cycle:
- They must manufacture or procure inventory weeks or months before a sale is confirmed.
- Once goods ship, payment is received 30 to 90 days later from international marketplaces.
- During this gap, they need working capital to fund the next production cycle.
- But banks have historically treated small e-commerce exporters as high-risk: no collateral, no long export history, no export credit insurance backing.
The result? Millions of MSME sellers were locked out of affordable pre-shipment and post-shipment credit — forced to either self-fund (stunting growth) or borrow from informal moneylenders at punishing rates. The new EPM credit support policy directly targets this gap.
India’s Export Promotion Mission (EPM): The Credit Support Scheme Explained
The credit intervention for e-commerce exporters is part of the broader Export Promotion Mission, a Rs 25,060 crore umbrella scheme with two sub-missions: Niryat Protsahan (financial enablers) and Niryat Disha (non-financial enablers). The e-commerce credit support falls under Niryat Protsahan and is operationalised jointly by the DGFT, Exim Bank of India, and the National Credit Guarantee Trustee Company Ltd (NCGTC).
Key Features of the Credit Support Scheme
| Feature | Details |
| Interest Subvention Rate | 2.75% per annum on pre-shipment and post-shipment rupee export credit |
| Annual Benefit Cap | Maximum Rs 50 lakh per MSME exporter per financial year |
| Type of Credit Covered | Cash credit, overdraft, and other working capital facilities |
| Credit Guarantee Cover | Partial credit guarantee via NCGTC for banks extending credit to eligible MSMEs |
| Implementing Agencies | Exim Bank of India (pilot) + NCGTC for guarantee cover |
| Applicable From | Credit sanctioned on or after January 2, 2026 |
| Application Process | Online declaration of intent on DGFT portal; Unique Identification Number (UIN) generated |
| Coverage Duration | Pilot phase valid through March 31, 2026 (review for formalisation ongoing) |
Source: DGFT Trade Notice No. 20/2025-26 (January 2, 2026) and Trade Notice No. 22/2025-26 (January 16, 2026); DGFT guidelines issued March 6, 2026.
Who Is Eligible? A Clear Breakdown for Amazon, ONDC, and Flipkart Sellers
The DGFT guidelines define two categories of eligible e-commerce exporters:
Category A: Established E-Commerce Exporters
- MSME seller with a proven track record of at least six months of exports through postal or courier channels (the standard route for cross-border e-commerce).
- Currently holds inventory in overseas warehouses for e-commerce fulfilment — for example, stock stored in Amazon FBA (Fulfilled by Amazon) warehouses in the US, UK, or UAE.
- OR holds stock in warehouses set up under the government’s e-commerce export hub facility.
This category directly benefits Amazon Global Selling sellers who already ship internationally through courier partners like DHL, FedEx, or India Post’s International Parcel Service.
Category B: New MSMEs Entering E-Commerce Exports
- MSMEs that have not yet exported but have at least one year of consistent domestic e-commerce operations (selling on Flipkart, Amazon India, Meesho, ONDC, or similar platforms).
- Must demonstrate a credible path to cross-border e-commerce fulfilment.
This category is particularly powerful for ONDC sellers — many of whom are first-generation digital merchants with strong domestic track records but no export history — giving them a formal on-ramp into global trade finance.
✅ Eligibility Quick Check Have you sold on Amazon India, Flipkart, ONDC, or any e-commerce platform for 12+ months? Do you have GST registration and MSME Udyam registration? Have you exported goods via courier or postal route for 6+ months, OR do you store inventory in an overseas fulfilment warehouse? If yes to any combination above, you are likely eligible. Register on the DGFT portal at dgft.gov.in to generate your UIN before applying for credit.
Platform-by-Platform Impact: Amazon, Flipkart Commerce, and ONDC
Amazon Global Selling Sellers
Amazon India’s Global Selling programme allows Indian MSMEs to list products on Amazon’s 18 international marketplaces — US, UK, UAE, Canada, Germany, and more. During Prime Day 2025, Amazon India saw 50% year-on-year growth in order volume, and the global appetite for Indian products is well-documented.
The credit support is particularly well-matched to Amazon FBA sellers. If you store inventory in Amazon’s overseas fulfilment centres, you directly qualify under Category A of the DGFT scheme. The working capital you can now access — backed by interest subvention and credit guarantees — can fund the procurement and shipment of larger FBA inventory batches, reducing per-unit costs and improving your Buy Box competitiveness on international marketplaces.
For Amazon sellers, the immediate action is to get MSME Udyam registration (if not already done), file a declaration of intent on the DGFT portal, and approach Exim Bank or their existing bank for a cash credit or overdraft facility tagged to export credit.
Flipkart Commerce / Flipkart Cross-Border Sellers
Flipkart’s logistics arm Ekart joined the ONDC network in FY25, extending its delivery services and creating new pathways for sellers to reach both domestic and export markets. Flipkart’s cross-border commerce ambitions are growing, with the platform positioning itself as a bridge for Indian sellers to reach Southeast Asian and global markets.
For Flipkart sellers with a domestic track record of 12 months or more, the Category B eligibility path of the EPM credit scheme is the relevant entry point. The interest subvention of 2.75% per annum means that a seller borrowing Rs 20 lakh in working capital effectively saves Rs 55,000 annually on financing costs — enough to fund additional SKUs, better packaging, or international certification like CE marking for European markets.
ONDC Cross-Border Sellers
ONDC — India’s Open Network for Digital Commerce — has expanded to over 616 cities with more than 7.64 lakh merchants as of August 2025. What makes ONDC structurally important for the EPM credit scheme is that ONDC’s architecture is explicitly designed to unbundle the e-commerce supply chain, enabling small local merchants to participate in global trade without depending on a single platform’s onboarding terms.
Nandan Nilekani, ONDC advisory council member and Infosys co-founder, has articulated this vision clearly: ONDC gives merchants the infrastructure to unbundle the supply chain, and credit through account aggregator allows everyone in the supply chain access to formal credit — removing dependence on informal moneylenders.
The EPM credit support scheme aligns perfectly with this vision. ONDC sellers with one year of documented domestic transaction history now have a formal, government-backed credit bridge to cross-border commerce. Coupled with ONDC’s expanding international shipping integrations, this creates a credible pathway to export for India’s smallest digital merchants.
How to Apply: Step-by-Step Process for MSME E-Commerce Exporters
- Step 1: Obtain MSME Udyam Registration at udyamregistration.gov.in if not already registered. This is a prerequisite for all EPM scheme benefits.
- Step 2: Log in to the DGFT portal at dgft.gov.in using your IEC (Importer Exporter Code). If you do not have an IEC, apply for one online — the fee is Rs 500 and the process takes 1 to 3 working days.
- Step 3: File an online declaration of intent on the DGFT portal to participate in the interest subvention scheme. A Unique Identification Number (UIN) will be generated and linked to your bank account.
- Step 4: Approach Exim Bank of India or your existing bank with your UIN, MSME Udyam certificate, IEC, and six months of export proof (courier receipts, shipping bills) OR one year of domestic e-commerce sales data.
- Step 5: Apply for a cash credit, overdraft, or working capital facility. The bank extends credit with NCGTC guarantee cover and passes on the 2.75% per annum interest subvention upfront to you.
- Step 6: The bank subsequently claims reimbursement from RBI under the prescribed operational framework — meaning the subsidy cost does not sit on your books.
⚠️ Critical Deadline Note The pilot scheme currently covers export credit sanctioned on or after January 2, 2026. The pilot validity runs through March 31, 2026, after which the DGFT will review operational learnings and stakeholder feedback before formalising the scheme. Apply during the pilot window to be among the first beneficiaries and help shape the final policy through the ongoing stakeholder consultation process.
The Bigger Picture: India’s $350 Billion Export Target and the MSME Engine
India has set an ambitious merchandise and services export target of USD 2 trillion by 2030. The e-commerce export channel — currently at USD 2 billion in B2C trade — is expected to grow exponentially if supply-side financing barriers are removed. The Commerce Ministry’s projection is that e-commerce exports can add USD 5 to 8 billion incrementally over the next three years if small sellers gain structured access to working capital.
The EPM credit scheme is India’s most direct policy attempt to replicate what China did through Alibaba and state-backed trade finance in the 2010s — but through a more democratised, open architecture via ONDC and regulated credit channels.
Critically, the scheme also extends the pre-shipment credit tenure to 450 days for credit disbursed up to March 31, 2026, under RBI’s Trade Relief Measures Directions 2025 — giving exporters significantly more runway to manufacture, ship, and collect payment before credit obligations become due.
EPM E-Commerce Credit Support: At a Glance vs. Previous Schemes
| Parameter | Old Interest Equalisation Scheme (IES) | EPM Niryat Protsahan (2026) |
| Coverage | Defined sectoral/HSN code list only | Broader MSME e-commerce exporters |
| Subvention Rate | 3% (MSME mfr.) / 2% (merchant) | 2.75% flat for all eligible MSMEs |
| Annual Cap | No explicit per-entity cap | Rs 50 lakh per exporter per year |
| Credit Guarantee | Not integrated | NCGTC partial guarantee for banks |
| Platform Scope | Not specifically digital/e-commerce | Specifically targets courier/postal/e-com |
| Application | Through bank only | DGFT portal + bank (UIN-linked) |
| Implementing Body | RBI / banks | Exim Bank + NCGTC + RBI |
Sources: DGFT Trade Notices 20/2025-26 and 22/2025-26; PIB Export Promotion Mission overview; Citi India circular, January 2026.
Final Word: The Credit Bridge That Was Missing
For years, India’s small e-commerce sellers have had access to global demand but not to the working capital needed to meet it. The EPM credit support scheme — with its interest subvention, credit guarantee backing, and digital application process — is the most operationally specific intervention the government has deployed to bridge this gap.
Whether you are a Varanasi silk seller on Amazon Global, a Rajasthani handicraft maker listing on ONDC, or a Tirupur garment exporter scaling through Flipkart Commerce, this policy is directly designed for you. The application process is digital, the benefits are real, and the pilot window is open right now.
Act on it before March 31, 2026. Register your intent on the DGFT portal, get your UIN, and walk into Exim Bank or your existing bank with confidence. The government has finally put the credit infrastructure in place. The next step is yours.
Frequently Asked Questions (FAQs)
Not necessarily. If you have 12 months of domestic e-commerce sales history on platforms like Amazon India, Flipkart, ONDC, or Meesho, you qualify under Category B as a new MSME entering e-commerce exports. You do not need prior export history.
The interest subvention is 2.75% per annum. On a working capital loan of Rs 20 lakh, that saves you Rs 55,000 per year in interest costs. On the maximum benefit of Rs 50 lakh, the annual saving is Rs 1.375 lakh. This is on top of the credit guarantee cover, which makes banks more willing to lend in the first place.
Yes. An IEC is required to file the declaration of intent on the DGFT portal and to avail export credit from banks. You can obtain an IEC online at dgft.gov.in for Rs 500 — the process typically takes one to three working days.
Yes, under Category B eligibility, ONDC sellers with at least one year of consistent domestic e-commerce operations can apply. ONDC’s transaction data, accessible through the account aggregator framework, can serve as the proof of domestic e-commerce history required by banks.
The DGFT has stated that operational learnings and stakeholder feedback from the pilot will be reviewed before the scheme is formally notified as a permanent policy. Sellers who participate during the pilot actively contribute to shaping the final framework. It is widely expected that the scheme will be extended and expanded given the government’s commitment to the USD 2 trillion export target.
