5 Export Incentives Most Indian Exporters Don't Claim (Leaving Crores on the Table)

The Rs 57,000 Crore Problem

India runs one of the most generous export incentive ecosystems in the world. Between central government schemes, state-level subsidies, and sector-specific programmes, there are dozens of benefits designed to make Indian exports more competitive globally. The problem is that most of this money never reaches the exporters it was designed for.

Seasaw's analysis of government disbursement data, utilisation reports from Export Promotion Councils, and state-level scheme audits shows that over Rs 57,000 crore in export incentives go unclaimed annually . That is not a rounding error. It is money that the government has already budgeted and earmarked for exporters, sitting uncollected because of awareness gaps, procedural friction, and a general assumption that "these schemes are for large exporters only."

They are not. Many of these incentives are specifically targeted at MSMEs and small manufacturer exporters. The five schemes below are the ones we see missed most often. And each has a straightforward claim process once you know about it.

Interest Equalisation Scheme (Interest Subvention)

The Interest Equalisation Scheme (also known as the Interest Subvention Scheme) provides a direct subsidy on the interest rate charged on pre-shipment and post-shipment rupee export credit. MSMEs get a 2.75% reduction on their export credit interest rate. Manufacturer exporters (non-MSME) get a 2% reduction .

This is arguably the most valuable unclaimed incentive for small and mid-size exporters, because it directly reduces your cost of working capital. If you borrow Rs 1 crore for export production at 9% interest, the scheme brings your effective rate down to 6.25% (for MSMEs) or 7% (for manufacturer exporters). Over a year, that is a saving of Rs 2.75 lakh or Rs 2 lakh respectively. Real money that flows straight to your bottom line.

The reason most exporters miss it: the scheme is supposed to be applied automatically by your AD bank when you take export credit. But "automatically" has a catch. Many banks do not proactively check whether an exporter qualifies. If you have not specifically informed your bank that you are eligible and submitted the required documentation, the subvention simply does not get applied.

Potential saving:

Rs 2.75 lakh per Rs 1 crore of export credit per year (MSMEs) or Rs 2 lakh (manufacturer exporters). For an exporter with Rs 5 crore in annual export credit, that is Rs 10. 13.75 lakh saved every year.

How to claim

• Submit your IEC (Import Export Code) and MSME Udyam Registration certificate (if applicable) to your AD bank's trade finance desk.
• File a written declaration stating you are eligible under the Interest Equalisation Scheme. Your bank should have a standard format.
• Verify your next export credit disbursement statement to confirm the subvention has been applied. If not, escalate to the branch manager with a reference to RBI Master Direction on Interest Subvention.
• Check retroactively: if you have been paying full interest on export credit without subvention, you may be able to claim the differential for earlier periods. Ask your bank.

MEIS/RoDTEP Scrip Sale

If you have claimed RoDTEP (Remission of Duties and Taxes on Exported Products) or still hold legacy MEIS (Merchandise Exports from India Scheme) scrips, you already know these are duty credit scrips that can be used to pay customs duty on imports. What many exporters do not realise is that these scrips are freely tradable . If you do not import goods yourself, you can sell your scrips to importers who need them. And convert the incentive into cash.

Scrips typically trade at 97. 98% of face value, which means you get near-full cash realisation. For an exporter receiving RoDTEP at, say, 1.5% of FOB value on Rs 10 crore of annual exports, that is Rs 15 lakh in scrips. Or roughly Rs 14.5 lakh in cash if you sell them. Many exporters either let scrips expire or assume they can only be used for their own imports.

How to claim and sell

• Log in to the DGFT portal and check your scrip balance under the RoDTEP/MEIS section.
• To sell, initiate a scrip transfer on the DGFT portal. You will need the buyer's IEC number and the transfer amount.
• Find buyers through the DGFT marketplace, your customs broker, or trading networks. Customs brokers typically maintain buyer lists and can match you quickly.
• Track scrip expiry dates. Unused scrips expire and the value is lost. Set reminders 3 months before expiry.

State-Level Export Subsidies

This is the most overlooked category of export incentives. Almost every major exporting state in India runs its own export promotion scheme with subsidies for freight, quality certification, packaging, and market development. These are in addition to central government schemes. You can claim both. The amounts are meaningful, especially for smaller exporters.

How to claim

• Identify your state's export promotion bureau or industries department. Search for "[your state] export promotion policy" on the state government website.
• Apply through the state single-window portal or directly through the export promotion bureau. Most states accept applications on a rolling basis.
• Keep all freight invoices, certification receipts, and export documentation ready. State schemes typically reimburse against actual expenditure.
• Check if your state has a dedicated MSME export subsidy with higher limits. Many states offer enhanced benefits for first-time exporters.

Market Access Initiative (MAI) Scheme

The MAI scheme, run by the Department of Commerce, reimburses 75% to 100% of the cost of participating in international trade fairs, buyer-seller meets, and market studies. For MSMEs and first-time participants, the reimbursement can cover the full cost of a trade fair booth, travel, and accommodation. Making international market access essentially free.

The scheme covers participation in international trade exhibitions, buyer-seller meets organised by EPCs and trade bodies, sector-specific market studies and product surveys, branding and publicity campaigns for Indian products abroad, and compliance with mandatory quality and packaging standards required by target markets.

The catch: you must apply before the event through your Export Promotion Council (EPC). Post-event applications are not accepted. Many exporters discover the scheme only after they have already attended a trade fair at their own expense.

How to claim

• Identify your sector's Export Promotion Council (EPC). If you are not a member, join one. EPC membership is required for MAI benefits.
• Request the annual calendar of MAI-approved events from your EPC. Submit your participation application before the event.
• After the event, submit reimbursement claims with original receipts for booth rental, travel, and accommodation within the EPC's specified deadline.
• First-time participants and MSMEs get priority and higher reimbursement rates. Highlight this in your application.

Transport and Marketing Assistance (TMA) for Agricultural Exports

The TMA scheme provides a per-metric-tonne subsidy for the export of specified agricultural and processed food products to specified markets. The rates range from Rs 3,000 to Rs 7,000 per metric tonne , depending on the product and destination. For exporters of spices, processed foods, dairy products, cereals, and other agricultural commodities, this can be a substantial offset against international freight and marketing costs.

The scheme is administered by APEDA (Agricultural and Processed Food Products Export Development Authority) and covers both freight and marketing costs. Unlike many other schemes, TMA is a post-shipment benefit. You apply after the goods have been shipped and payment received. The application window is 12 months from the date of shipment .

The utilisation rate of TMA is particularly low among small exporters. APEDA's own data suggests that less than 30% of eligible agricultural exporters apply for the benefit. The main reason: most exporters of agricultural products do not know that APEDA runs this scheme, or assume it is only for large commodity exporters.

How to claim

• Register on the APEDA portal (apeda.gov.in) if you are not already registered. Registration is mandatory for agricultural exports and free of cost.
• After shipping, log in to the APEDA portal and submit a TMA claim with the shipping bill, commercial invoice, bill of lading, and bank realisation certificate (eBRC).
• Apply within 12 months of the date of shipment. Claims submitted after 12 months are not accepted.
• Check the product-market matrix on the APEDA website to confirm your product and destination qualify. The list is updated periodically.

Why These Incentives Go Unclaimed

After working with hundreds of exporters, we see the same pattern repeat. The incentives exist. The exporter qualifies. But the money never gets claimed. Here is why:

Lack of awareness. Most exporters learn about export procedures from their customs broker or freight forwarder, neither of whom has any incentive (or obligation) to tell you about government benefit schemes. Banks are supposed to inform eligible exporters about interest equalisation, but most do not. State schemes get almost zero publicity outside of official gazette notifications.

Complex application processes. Each scheme has its own portal, its own documentation requirements, and its own timelines. An exporter trying to claim MAI, state-level freight subsidy, and RoDTEP scrip transfer is dealing with three different agencies, three different sets of paperwork, and three different follow-up cycles. For a small exporter without a dedicated compliance team, the administrative burden can feel disproportionate to the benefit.

Banks not informing exporters. The Interest Equalisation Scheme is the clearest example. The RBI has directed banks to apply the subvention automatically, but many banks treat it as an opt-in benefit. If you do not specifically ask for it and submit a declaration, it does not get applied. We have seen exporters paying full interest on export credit for years without knowing they qualified for a 2.75% reduction.

State schemes are poorly publicised. State export promotion policies are often announced with fanfare but implemented through obscure departments with limited outreach. Many exporters do not even know their state has an export promotion policy, let alone the specific subsidies available.

Action Checklist: Audit Your Incentive Eligibility

Use this checklist to systematically audit which export incentives you are currently missing. Block 30 minutes this week and go through each item:

Your incentive audit

• Check your latest export credit statement from your AD bank. Is the interest equalisation subvention reflected? If not, contact your bank's trade finance desk this week.
• Log in to the DGFT portal and check your RoDTEP/MEIS scrip balance. Do you have unused scrips nearing expiry? If you do not import, find a buyer through your customs broker.
• Search for your state's current export promotion policy. List the subsidies that apply to your product category and export volume.
• Contact your Export Promotion Council and ask for the current year's MAI-approved event calendar. Identify at least one relevant trade fair or buyer-seller meet.
• If you export agricultural or processed food products, check the APEDA TMA product-market matrix to see if your products and destinations qualify.
• Use an export incentive finder tool to cross-reference your IEC, product codes, and export destinations against all available central and state incentives.
• Set a quarterly calendar reminder to re-run this audit. New schemes are announced, existing ones are extended or modified, and your export profile may change.

Frequently Asked Questions

How much do Indian exporters lose by not claiming export incentives?

Seasaw's research estimates that over Rs 57,000 crore in export incentives go unclaimed annually in India. This includes central government schemes like Interest Equalisation, RoDTEP scrip trading, and the Market Access Initiative, as well as state-level subsidies for freight, quality certification, and market access.

What is the Interest Equalisation Scheme for exporters and how do I claim it?

The Interest Equalisation Scheme provides a 2.75% interest rate reduction for MSMEs and 2% for manufacturer exporters on pre-shipment and post-shipment rupee export credit. To claim it, submit your IEC and MSME Udyam registration to your AD bank's trade finance desk and file a declaration of eligibility. The bank should then apply the subvention automatically on your export credit.

Can I sell my RoDTEP or MEIS scrips, and how do I find buyers?

Yes, RoDTEP and MEIS scrips are freely tradable. If you do not import goods yourself, you can sell your scrips to importers through the DGFT portal. Initiate a scrip transfer on the portal and find buyers through the DGFT marketplace or your customs broker. Scrips typically sell at 97. 98% of face value.

Related Guides

• Government Schemes for Exporters. Complete directory of central and state government export incentive schemes with eligibility criteria.
• Interest Subvention Guide. How the Interest Equalisation Scheme works, who qualifies, and how to ensure your bank applies it.
• Export Exhibitions and Trade Fairs. How to participate in international trade fairs with MAI reimbursement and EPC support.
• Unclaimed Export Incentives Analysis. Seasaw's data on which export incentives have the lowest utilisation rates and why.

Update history

• 2026-07-28 First published.