Interest Equalisation Scheme Extended: MSMEs to Benefit

The commerce ministry announced that the interest equalisation will be capped at Rs 1.66 crore per Import-Export Code (IEC) for the period of July 1 to August 31. The scheme, which provides interest benefits to exporters, has been extended to boost the country's outbound shipments. Only MSME manufacturer exporters are eligible for a 3 percent benefit under this scheme.

The commerce ministry on Wednesday announced that interest equalisation will be limited to Rs 1.66 crore per Import-Export Code (IEC) for the period from July 1 to August 31. This cap comes after the government extended the Interest Equalisation Scheme (IES) on pre- and post-shipment rupee export credit for two months to encourage outbound shipments.

The Interest Equalisation Scheme, which grants exporters interest benefits, had originally ended on June 30. However, a recent trade notice from the Directorate General of Foreign Trade (DGFT) confirmed that the program's extension—decided on June 28, 2024—applies solely to MSME manufacturer exporters, offering them a 3 percent interest benefit.

An Importer-Exporter Code (IEC) serves as a crucial business identification number, necessary for any trade activities involving imports or exports in India. Without this code, a person is not permitted to engage in these activities unless specifically exempted.

(With inputs from agencies.)