Interest Equalisation Scheme Extension Could Boost Indian Exports

The commerce ministry plans to propose an extension of the interest equalisation scheme in the upcoming Budget for another five years. This scheme aids exporters by offering rupee export credit at competitive rates, enhancing their global competitiveness. The government extended it till December 2024 last September.

The commerce ministry is poised to recommend an extension of the interest equalisation scheme for an additional five years in the upcoming Budget, an official announced. The scheme, which concluded in December last year, aims to bolster the country's export sector by offering competitive rupee export credit rates.

Initially launched on April 1, 2015, the scheme was slated to be valid until March 31, 2020. Despite various extensions, including during the COVID-19 period, the government recently expanded the scheme's tenure until December 31, 2024. This initiative provides vital financial assistance, capping annual benefits at Rs 50 lakh crore for individual exporters.

Exporters, hugely benefitted by the scheme amidst global economic challenges, are advocating its continuation. Federation of Indian Export Organisation President Ashwani Kumar emphasized its importance for maintaining India's export competitiveness, akin to low interest rates in countries like China. The Finance Minister will reveal the Budget on February 1.

(With inputs from agencies.)