The initiative aims to enhance export finance access for MSMEs involved in international value chains by providing structured support for export factoring arrangements, including recourse and non- recourse factoring in INR or freely convertible foreign currency. Eligible MSMEs with valid IEC and Udyam Registration can claim interest subvention at 2.75% on export factoring interest costs, subject to an annual cap of Rs 50 lakh per financial year and restricted to a notified positive list of 4,139 HS six-digit tariff lines. It will initially operate on a pilot basis.