Interest Equalisation Scheme

Interest equalisation scheme extended for 3 months; capped at Rs 50 lakh

The government has extended the interest equalisation scheme on pre- and post-shipment rupee export credit for three more months till December 31 to promote the country's outbound shipments. The scheme, which provides exporters interest benefits, ended on September 30. In a trade notice, the Directorate General of Foreign Trade (DGFT) said, "Trade and Industry is hereby informed that the Interest Equalisation Scheme for Pre and Post shipment Rupee Export Credit, which had earlier been extended till September 30, 2024 has been further extended by three months up to December 31, 2024". It also said the fiscal benefits of each MSME, on aggregate, will be restricted to Rs 50 lakh for 2024-25 till December 2024. "MSME manufacturer exporters who have already availed equalisation benefit of Rs 50 lakh or more till 2024-25 till September 30, 2024, will not be eligible for any further benefit in the extended period," it said, adding, "this extension shall be valid for three months or such .

Interest equalisation scheme for exporters extended for another month

The government has extended the interest equalisation scheme on pre- and post-shipment rupee export credit for one more month till September 30 to promote the country's outbound shipments. The scheme, which provides exporters interest benefits, ended on August 31. In June, it was extended for two months. In a trade notice, the Directorate General of Foreign Trade (DGFT) said, "Trade and industry is hereby informed that the Interest Equalization Scheme for Pre and Post Shipment Rupee Export Credit, which had earlier been extended up to August 31 as a fund limited scheme, has been further extended for one month i.e., up to September 30, 2024." It said, however, this extension is applicable only for MSME manufacturing exporters. On December 8, 2023, the Union Cabinet approved an additional allocation of Rs 2,500 crore for the continuation of the scheme up to June 30. The scheme helps exporters from identified sectors and all MSME manufacturer exporters to avail of rupee export credit

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Commerce min caps interest equalisation at Rs 1.66 cr per IEC for Jul-Aug

The commerce ministry on Wednesday clarified that the interest equalisation will be capped at Rs 1.66 crore per IEC (import-export code) for the July 1-August 31 period. Last month, the government extended the interest equalisation scheme (IES) on pre- and post-shipment rupee export credit for two months to promote the country's outbound shipments. The scheme, which provides exporters interest benefits, ended on June 30 this year. In a trade notice, the Directorate General of Foreign Trade (DGFT) said the scheme extended on June 28, 2-24 is applicable only to MSME manufacturer exporters, who are eligible for IES benefit of 3 per cent. "The Interest Equalisation will be capped at Rs 1.66 crore per IEC for the period from 1st July 2024 to 31st August 2024," DGFT said. An Importer-Exporter Code (IEC) is a key business identification number, mandatory for export from India or import to India. No export or import shall be made by any person without obtaining an IEC unless specifically

Exporters urge government to extend interest equalisation scheme

In a statement, the apex body for exporters, Federation of Indian Export Organisations (FIEO), on Monday said that the scheme provides competitiveness to Indian exports, particularly to MSMEs

Comm ministry may seek extension of interest equalisation for exporters

The commerce ministry is likely to seek further extension of the interest equalisation scheme on pre- and post-shipment rupee export credit for another five years to promote the country's outbound shipments, an official has said. The scheme will end on June 30 this year. "The ministry will do revamping of some schemes like interest equalisation scheme. We would propose an extension of the scheme for five years. The scheme is doing good, and it is helping the exporters," the official said. On December 8, 2023, the Union Cabinet approved an additional allocation of Rs 2,500 crore for the continuation of the scheme up to June 30. The scheme helps exporters from identified sectors and all MSME manufacturer exporters to avail of rupee export credit at competitive rates at a time when the global economy is facing headwinds. Exporters get subsidies under the 'Interest Equalisation Scheme for pre and post-shipment rupee export credit. The additional outlay of Rs 2,500 crore, over and abov

Govt extends the interest equalization scheme until June 30, 2024

The scheme, inaugurated on April 1, 2015, was originally slated for a five-year duration until March 31, 2020

Rs 2500 cr approved for continuation of interest equalisation scheme up

The Union Cabinet on Friday approved an additional allocation of Rs 2,500 crore for the continuation of interest equalisation or subsidy scheme on pre- and post-shipment rupee export credit up to June 30 next year. This would help exporters from identified sectors and all MSME manufacturer exporters to avail rupee export credit at competitive rates at a time when the global economy is facing headwinds. Exporters get subsidies under the 'Interest Equalisation Scheme for pre and post-shipment Rupee export credit. The decision in this regard was taken by the Union Cabinet chaired by Prime Minister Narendra Modi. It "has approved an additional allocation of Rs 2,500 crore for continuation of Interest Equalisation Scheme till 30th June 2024," an official statement said on Friday. The additional outlay of Rs 2500 crore, over and above the current outlay of Rs 9,538 crore under the Scheme, is made available to bridge the funding gap to continue the Scheme up to June 2024. Manufacturer

RBI issues norm for extended interest equalisation scheme for export credit

The Reserve Bank of India (RBI) on Tuesday issued modified norms on Interest Equalization Scheme for export credit after the extension of the scheme till March 2024 by the government.

Commerce ministry mulls higher 5% rate for interest equalisation scheme

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