The Merchandise Exports from India Scheme (MEIS), India's flagship duty-credit incentive, is approaching its final phase-out (June 2026 deadline). Exporters who have relied on MEIS refunds to bridge pre-shipment and post-shipment working-capital gaps face a sharp funding cliff.
The Reserve Bank of India has reinforced its Credit Guarantee Trustee for Micro and Small Enterprises (CGTMSE) scheme and linked export-credit guarantees to Priority Sector Lending (PSL) norms effective April 2026. Understanding which guarantee instruments replace MEIS—and how to access them before the scheme closes—is now urgent.
Advisory
Exporters must file all outstanding MEIS claims by the June 2026 deadline. Post-June, the Directorate General of Foreign Trade (DGFT) will no longer accept fresh claims. Many mid-market exporters still holding unprocessed claims should accelerate documentation and submission.
RBI's April 2026 PSL circular clarified that bank lending against Credit Guarantee Trustee-backed guarantees for export-oriented MSMEs now counts toward PSL targets. This incentivises banks to lend; exporters gain cheaper, faster pre-shipment and post-shipment credit lines backed by 80–85% government guarantees.
Several state governments (Maharashtra, Tamil Nadu, Gujarat) have announced parallel export-credit and working-capital subsidy schemes (May–June 2026) to cushion MEIS withdrawal. These are typically 2–3% interest subventions on export-credit facilities from notified banks.
The June 2026 MEIS sunset creates a compliance and cash-flow planning imperative. Exporters must: (1) file final MEIS claims immediately through the DGFT portal; (2) apply for CGTMSE export-credit guarantees (or state-equivalent schemes) via their bankers before credit lines expire; (3) update their IEC records and GST status to remain eligible for residual DGFT support schemes (Rebate of State Levies, or RoSL, if applicable in their sector); and (4) map their working-capital cycle to bank tenure under guarantee schemes (typically 5–7 years). Vinayakam Consultants helps exporters audit MEIS eligibility, file outstanding claims, restructure working-capital facilities under CGTMSE and state schemes, and bridge the transition to RBI-backed credit lines—ensuring no funding gap between scheme closure and new facility drawdown.
Your action checklist
- Audit all outstanding MEIS claims (product-wise, shipment dates, duty paid) and file them through the DGFT portal by 15 June 2026; retain supporting invoices, Bill of Export, and remittance proof.
- Approach your bank with audited balance sheets and export-turnover certificates to apply for CGTMSE-backed export credit (pre-shipment and post-shipment facilities); ensure your bank is a notified PSL-eligible lender.
- Cross-check your state's MSME/exporter welfare schemes (interest subvention, credit-guarantee top-up) launched in May–June 2026; link application to your bank's guarantee facility to stack benefits.
- Stress-test your working-capital calendar under the new regime: compare MEIS-funded cycles to bank-facility repayment tenure, and identify shortfalls; plan for potential cash-flow tightening and negotiate overdraft or non-fund limits as buffer.
Frequently asked questions
The Merchandise Exports from India Scheme (MEIS) will be phased out by June 2026. Exporters must file all outstanding MEIS claims by this deadline; the DGFT will not accept fresh claims after June 2026.
The RBI's Credit Guarantee Trustee for Micro and Small Enterprises (CGTMSE) scheme, linked to Priority Sector Lending (PSL) norms effective April 2026, offers 80–85% government guarantees for export-oriented MSMEs seeking pre- and post-shipment credit.
Yes. Maharashtra, Tamil Nadu, and Gujarat have announced parallel export-credit and working-capital subsidy schemes (May–June 2026), typically offering 2–3% interest subventions on export-credit facilities from notified banks.