As 2025 draws to a close, one message from India’s export and trade finance ecosystem stands out clearly: demand is not the problem; liquidity, risk, and access to timely finance are. Industry leaders say the past year has fundamentally changed how exporters, especially MSMEs, operate, borrow, and manage uncertainty in global trade.
From tariff shocks and currency volatility to longer payment cycles and documentation challenges, exporters have had to adapt quickly. At the same time, technology-led platforms and alternative financing models have begun to bridge long-standing gaps in working capital.
Exporters Face a New Reality in 2025
According to Pushkar Mukewar, Co-founder and CEO of Drip Capital, 2025 has been a defining year for exporters across the spectrum. “Exporters today are operating in a very different trade environment compared to even two years ago,” Mukewar says, pointing to documentation gaps, extended payment cycles, currency fluctuations, and tariff-driven pricing shocks as major pressure points. He notes that the biggest challenge is not lack of demand, but liquidity and risk management, especially for businesses dependent on predictable working capital.
He also says that there is a clear shift away from traditional banking processes. Exporters are increasingly seeking structured, real-time financing solutions that align with fast-moving global supply chains. As digital trade platforms scale and global lenders, development institutions, and private capital participate more actively, access to export financing is becoming more efficient and transparent.
Looking ahead to 2026, Mukewar believes success will depend not just on deploying capital, but on shared data frameworks, interoperable systems, and deeper collaboration between regulators, lenders, and technology platforms.
MSMEs, Credit Gaps, and the Role of Technology
Talking on the similar note, Sundeep Mohindru, Founder and Promoter of M1xchange, says 2025 has been a year of economic resilience for India despite global uncertainty.
He notes that MSME growth has been driven by better regulatory frameworks, improved access to formal credit, and widespread adoption of digital channels for invoicing, payments, and compliance. However, a massive MSME credit gap of Rs. 25-30 lakh crore still persists.
To bridge this gap, Mohindru stresses the importance of reliable and easy access to working capital. Technology, he says, is already playing a critical role by improving credit assessment, offering verified transaction data, and giving lenders greater visibility into cash flows.
He highlights the TReDS (Trade Receivables Discounting System) as a powerful example of how registered trade data and institutional investors can unlock capital for small suppliers without increasing their leverage. Greater onboarding of MSMEs and streamlined end-to-end processes could significantly boost India’s exports in the coming years.
Looking to 2026, Mohindru believes the focus will shift from rapid expansion to depth, risk management, and compliance-led growth. Increased participation from PSUs on TReDS, along with acceptance of alternative credit evaluation (CAE) models, could expand formal credit access, especially for first-time borrowers and MSMEs in the services sector.
Cross-Border Trade Demands Speed and Transparency
For Munindra Verma, CEO of M1 NXT, 2025 has made one thing clear: cross-border trade urgently needs faster and more transparent financing.
Despite India’s growing export footprint, many MSMEs continue to struggle with documentation issues, fragmented supply chains, limited credit access, and counterparty risk. Recent tariff shocks across key trade corridors have further squeezed smaller exporters operating on tight cash reserves.
Verma points out that even mid-to-large exporters are feeling the impact. While scale offers negotiation power, fluctuating prices, evolving compliance norms, and geopolitical uncertainty are forcing exporters to rethink how they manage production cycles and working capital. For them, quick access to competitive global financing has become essential, not optional.