Government Extends Interest Equalisation Scheme for MSME Exporters Till September 30

The Indian government has extended the Interest Equalisation Scheme on rupee export credit for MSME exporters until September 30. Originally ended on August 31, this scheme benefits exporters by providing interest subsidies. The Union Cabinet approved an additional allocation of Rs 2,500 crore, aiming to support outbound shipments amid global economic challenges.

The government has prolonged the Interest Equalisation Scheme on pre- and post-shipment rupee export credit for another month until September 30. This extension aims to foster the country's outbound shipments.

Previously set to conclude on August 31, the scheme was extended in June for two months. The Directorate General of Foreign Trade stated that this extension, lasting till September 30, 2024, applies exclusively to MSME manufacturing exporters.

In December 2023, the Union Cabinet sanctioned an additional Rs 2,500 crore allocation to sustain the scheme until June 2024. This initiative aids exporters from specified sectors and all MSME manufacturers in obtaining rupee export credit at favorable rates, especially during adverse global economic conditions.

(With inputs from agencies.)