Government Extends Interest Equalisation Scheme for MSME Exporters

The government has extended the interest equalisation scheme for pre- and post-shipment rupee export credit by two months, solely benefiting MSME exporters. The extension has a total outlay of Rs 750 crore and will last until August 31. Non-MSME exporters will not benefit from this scheme beyond June 30.

The government, in a move aimed at boosting exports, has extended the interest equalisation scheme on pre- and post-shipment rupee export credit for an additional two months, expiring on August 31. However, this extension exclusively benefits MSME exporters, leaving non-MSME exporters without support beyond the previous deadline of June 30.

The Directorate General of Foreign Trade (DGFT) clarified that the scheme, which initially concluded on June 30 as a fund-limited measure, has a further allocation of Rs 750 crore. Despite this extension, the continuation fails to address the needs of larger exporters, sparking disappointment within the Federation of Indian Export Organisations (FIEO).

FIEO President, Ashwani Kumar, expressed concerns over the limitation of the extension to MSMEs, citing potential impacts on labour-intensive export sectors dominated by non-MSME exporters. The fund-limited nature of the scheme, capped at Rs 10 crore per annum per IEC for individual exporters, aims to provide rupee export credit at competitive rates amidst global economic challenges.

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