New Delhi, In a significant move, the Union Cabinet, led by Prime Minister Narendra Modi, has given the green light for an additional allocation of Rs 2,500 crore to extend the Interest Equalisation Scheme until June 30, 2024. The decision aims to support exporters in identified sectors and all MSME manufacturer exporters, enabling them to access pre and post-shipment Rupee export credit at competitive rates.
The Interest Equalisation Scheme, monitored jointly by the Directorate General of Foreign Trade (DGFT) and RBI, facilitates the availability of pre and post-shipment packing credit at competitive rates, crucial for the international competitiveness of the export sector.
This extension is expected to benefit manufacturer and merchant exporters of 410 identified tariff lines, with a 2% interest equalisation rate, and all MSME manufacturer exporters at a 3% interest equalisation rate. The RBI will implement the scheme through various public and non-public sector banks.
The scheme, initiated on April 1, 2015, initially valid for five years, has been extended multiple times, including during the COVID-19 pandemic. The present fund-limited structure, with benefits capped at Rs 10 crore per annum per Import Export Code (IEC), is a departure from the previous unrestricted format.
The move is anticipated to boost exports, particularly in labour-intensive sectors, contributing to employment generation.
By ANI,
