Commerce Ministry Seeks Extension of Interest Equalisation Scheme to Boost Exports

The Commerce Ministry is advocating for an extension of the Interest Equalisation Scheme to support rupee export credit for exporters. Initially set to end this month, discussions with the Department of Expenditure are ongoing. The scheme provides competitive export credit rates and has been renewed multiple times since its inception in 2015.

The Commerce Ministry has proposed an extension of the Interest Equalisation Scheme on pre- and post-shipment rupee export credit, aiming to bolster the country's export sector, an official revealed on Wednesday.

Set to expire this month, the scheme's renewal is under discussion with the Department of Expenditure. Commerce Secretary Sunil Barthwal acknowledged that various schemes, including this one, are at different stages of completion.

Director General of Foreign Trade, Santosh Kumar Sarangi, expressed confidence that the scheme could be renewed within the next month. Initially exclusive to MSMEs since June, the extension is now sought for a broader range of exporters. The Interest Equalisation Scheme, capped at Rs 10 crore per annum per Import Export Code, aims to provide exporters with subsidized, competitive rates, crucial amid global economic challenges. The scheme has been regularly extended since its 2015 inception, with funding jointly managed by the Directorate General of Foreign Trade and the Reserve Bank of India.

(With inputs from agencies.)